We taxpayers are set to lose between $10 and $14 billion on the auto bailouts, depending on which story you read. It seems to have dawned on one of GM’s leaders that his taxpayer-financed car company could be a subject of debate in the presidential election. Yes, Mr. Reuss, that’s true, and I relish the upcoming discussion. We are facing a fork in the road in this country that will determine who we are — and aren’t — as a people. The auto bailouts are a signature piece of the policy approach that says America should be a social welfare state that subsidizes industries and companies that are bloated and unable to compete effectively in the marketplace — all under the guise of “protecting” jobs. The other view of America — my view – believes we should return to what made this country unique and prosperous — endless opportunity for every person to pursue their dreams to whatever degree they choose. So yes, Mr. Reuss, the bailout of your company — a company unable to compete in the marketplace without being propped up — WILL be the subject of scrutiny.
General Motors Co’s North American chief Mark Reuss said Tuesday he worries that the auto maker’s image will take a battering this year as the U.S. auto bailout take center stage in presidential political campaigns.
Asked whether bailout critics could be bad for GM, Mr. Reuss said the matter “concerns me given what’s happening politically. It’s certainly very public in places where people decide to make it a party issue.”
The U.S. government is unlikely to recover all of the $50 billion that it invested as part of the company’s bankruptcy reorganization. The U.S. sold $13.5 billion worth of GM shares in November, cutting its stake from 61% to about 33%. The U.S.’s stake now is down to 26.5% on a fully-diluted basis.
