President Barack Obama and Vice President Joe Biden have made their bailout of General Motors Company (GM) the shining star on their re-election tree. Their claim is they saved the jobs of GM employees. But that is simply not the case. Yes, they may be saving jobs for their union supporters to whom they are obligated, but high-paying middle-class non-union jobs are being exported by the Outsourcer-in-Chief faster than Felix Bumgartner fell from space yesterday.
The article I wrote prompted a response from General Motors. Here is that response:
"This is Rob Peterson from General Motors Communications.
"GM has a global policy to “build vehicles where we sell them,” which lowers vehicle cost for consumers in the over 120 markets where we do business. Currently, 30 percent of GM's GLOBAL sales occur in the United States. All of the vehicles sold in the United States, except for the low-volume, Korean built Chevrolet Spark are built in North America. Although GM does not import vehicles from China to the United States, several vehicles built in the United States are exported to China, including: the Chevy Volt, Buick Enclave and Cadillac SRX, CTS and Escalade are exported from North America to China
"Doing business in China requires every foreign manufacturer to have a joint-venture with a Chinese company. GM has strategic partnerships in 30 countries, including China, which positions the GM brand as the leading automaker in the world’s largest and fastest-growing automotive markets - success other auto manufacturers like Ford, Toyota and Honda are feverishly attempting to duplicate.
"GM has not used any U.S. government bailout money to build a manufacturing footprint in China. Nor have we shared any of our first generation electric vehicle technology developed mostly before the bailout (Volt develoment began 3 years prior to the bailout) with our partners.
"Since bankruptcy, GM has announced investments at 30 U.S. facilities totaling more than $7.3 billion, which created or retained more than 18,600 jobs.
Nice of them to include the rebuttle from the liberal hacks at FactCheck.org. I had some other thoughts about Rob's response, but I thought I would look for someone who has been looking at this issue longer than I have for a response. I asked the co-author of the book "Death by China" and Board Member of the American Jobs Alliance, Greg Autry for his thoughts. Here is his reply:
"The fact that GM, like most American companies is filled with MBAs who have been taught that the only thing on God's Earth that matters is Return on Capital means they are going to do this. If we keep playing along with their Emperor's New Clothes version of international trade and excusing reprehensible behavior things will continue.
"If you take money from A and invest other money in B at the same time you are still transferring capital. Any further explanation is accounting masterbation. You could track each physical piece of currency by serial number for all I care, it doesn't change the fact. We all know this intuitively and it is just insulting when the financial hand waiving starts.
"There is nothing liberal or conservative in that. It is a fact If you take a loan on your home and then buy a car, sure there are lots of shenanigans you can play for tax purposes, but the fact is you've got so much money to make investments with and pouring more in from the house loan enables you to buy the car (hopefully not a GM one). Sure GM might have used money from a different pot or claim they can't repatriate money because of tax treatment or whatever. Doesn't change the fact.
"They are either one company or they are not. Either they are an American firm or they are not. I think they are not and should be treated like a foreign corporation doing business in the US and it should be made clear that their operations and employees abroad do not enjoy the protection of the US government. If they don't like that, they can start behaving like a firm that puts America and American values ahead of profits.
"Honestly, I would like to see your friend at GM explain this before he says one more word:"
Cadillac, Official Sponsor of the Chinese Communist Revolution Celebration
It is clear, the earlier story touched a nerve with General Motors. Sorry about that... Sending our badly needed American jobs to China hits a nerve also... With your stockholders, the Voters of the United States of America.
President Obama wants you to believe he rode in on a white horse while wearing shining armor and rescued GM and American Jobs. The truth is, he took your money, stole pensions from non-union employees, shipped non-union jobs to China and gave away important technology about American automobile manufacturing technology to the Chinese government - and he borrowed the money from them, that you will have to pay back with interest, to do so. No thanks, Mr. President. That shining star is not very pretty anymore.