President Obama and his supporters have been more than happy to tout his bailout of the auto industry, but General Motors still owes taxpayers $42 billion according to an Inspector General's report and the company's stock has hit an all time low.
GM owes $27 billion on the nearly $50 billion it received from the auto bailout and Ally Bank, the company’s lending arm, owes $14.7 billion of the $17.2 billion taxpayer-funded bailout it received.
GM’s stock has plummeted in recent months after stagnant development in overseas markets. It hit a new low on Wednesday, falling to $18.80, a 52 percent drop from its January 2011 high of $38.90.
The rapid decline of the stock price has kept taxpayers on the hook for billions in unpaid bailout dollars. The stock would need to make a quick—and meteoric—turnaround for taxpayers to break even.
“In order to recoup its total investment in GM, Treasury will need to recover an additional $27 billion in proceeds. This translates to an average of $53.98 per share on its remaining common shares in New GM,” the IG report concluded.
The electric Chevy Volt, a GM vehicle touted by President Obama and environmentalists (the same environmentalists waging a war on coal) is also failing miserably.
Chevy sold 7,671 Volts last year. Nissan’s all-electric Leaf didn’t do much better with 9,674 sales — less than half what Nissan had expected. Car makers often give up on conventional vehicles that post such poor numbers.
Keep working taxpayers! The government is depending on you.
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