It's been a full year since the General Motors Initial Public Offering, and the company's stock isn't performing as well as anyone in Detroit or Washington, D.C. would like. As The Detroit News notes, the stock has dipped by 30 percent from its initial price, thanks in part to troubles in Europe and internal dissatisfaction with the company's profit margins. As of last Wednesday, the company's stock fell by 10.9 percent to $22.31 when GM announced that its fourth-quarter earnings wouldn't make any gains over 2010. That news has prompted the U.S. Treasury, which still holds a 27-percent stake in General Motors, to hold off indefinitely on selling its remaining 500 million shares.
The Detroit News reports that if the government were to sell off its stake in the company at current trading prices, the country would lose around $15 billion on the country's investment in GM. Even with the indefinite hold on selling off the shares, the federal government has readjusted its projected losses on the automotive bailouts from $14.33 billion to $23.6 billion.


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  • 110 Comments
      Scott
      • 3 Years Ago
      We will wake up when we all work at walmart.
      Dennis
      • 3 Years Ago
      They might be doing better if they made cars people actually liked instead of all the boxes on wheels or an overpriced electric car that can only go 40 miles between charges.
        DarkKnight67
        • 3 Years Ago
        @Dennis
        Typical close minded attitude.
          Julius
          • 3 Years Ago
          @DarkKnight67
          @ sinckart: "GM should have taken a page out of Tesla's book".... You mean the same company that has yet to turn a profit... or the same company whose sole production model (the Roadster) is based on a car that's no longer certified for sale in the US (Elise)?
          sinckart
          • 3 Years Ago
          @DarkKnight67
          Wait a tick. With 40 years of evidence and history you have the nerve to call anyone "CLOSE MINDED"? Really? By the time GM finished farting around with the Volt and finally released it, it was already obsolete. GM should have taken a page out of Tesla's book.
          ss1591
          • 3 Years Ago
          @DarkKnight67
          DarkKnight67, These people will all-ways buy non=American......Go anyone but USA!
        Scott
        • 3 Years Ago
        @Dennis
        gm is number 1 in sales and profit figures, so somebody likes their cars. gm is pioneering in electric powered cars. it is not cheap to produce a technological marvel. they are losing money on volts right now to become less dependent on fossil fuels.. thanks gm
      janka51
      • 3 Years Ago
      the biggest problem is people turning their back on their country and buying foreign cars.
        • 3 Years Ago
        @janka51
        [blocked]
      Joel Oliver
      • 3 Years Ago
      Waiting for the onslaught of government motors jokes, and then the shout-down from the pro-GM camp here. Personally, I feel for people who's livelihoods are tied to this company, but they should have been allowed to fail. Bailing them out sent the wrong message, and resulted in more dollars being printed. And we can all sit here, and hypothesize about how long those factories would've been shuttered, but I believe those with entrepreneurial spirit would've had them back up more quickly than people think. And yes, suppliers would've been strained, some might have even folded, and it sucks, but that's business. And some of you will disagree with me, quite a few people who comment on this blog, but look how well your Keynesian system has worked over the past 80 years or so... really loving these huge government inflated bubbles.
        Georgie Porgie
        • 3 Years Ago
        @Joel Oliver
        Keynesian macroeconomics trends in and out like a fashion. The USFR and ECB have been preaching monetarism rather. In fact some would say Keynesian train of thought fell out of flavour at the mid 70's after the golden age of capitalism. Agreed on letting GM fail, and sympathies to the workforce however.
          Joel Oliver
          • 3 Years Ago
          @Georgie Porgie
          I understand that the line of thinking has come in and out of favor, but the US government has never stopped adhering to it's principles. Reagan himself claimed to love the Road to Serfdom, and considered himself an adherent to Hayek's thoughts, yet spent more than Carter. And I understand that he still had to deal with a heavily biased congress, but he had the power of the veto, and only used it 78 times total. Government spending increased 69% over his 8 years, (that's a little over 6% yoy, and almost double what Clinton did). So well the economic theory has fallen in and out of popularity among the public, it's federal government adherents have never stopped. The deficits are always growing.
        rsxvue
        • 3 Years Ago
        @Joel Oliver
        Didn't expect to read such a logical comment early on.
          Gubbins
          • 3 Years Ago
          @rsxvue
          Me either! Good posting Joel--thanks.
        Hampton
        • 3 Years Ago
        @Joel Oliver
        Ditto Rsxvue and Gubbins sentiment.
        You guy
        • 3 Years Ago
        @Joel Oliver
        Penske Racing wanted to buy Saturn, but the government said no. I think we could have had some really cool products come out of an essentially new American automaker.
        Scott
        • 3 Years Ago
        @Joel Oliver
        the entrepreneurial spirit didn't save pontiac, saturn, hummer, oldsmobile, mercury, plymouth, etc...
      Ronald Mayfield
      • 3 Years Ago
      My opinion is still the same . When you buy a foreign car 10 Americans lose their jobs. That means no money goes into S. S. and the younger can not afford a new home so the construction business is bad . So what do you expect? When we are working good G.M.,Ford and chysler will sell more cars. Just the stupid people will buy Foreign cars.
        sp600
        • 3 Years Ago
        @Ronald Mayfield
        Do you know how many of those foreign cars are made here? Do you know how many American companies are makeing those parts for those cars right here. I guess you forgot to check that out huh?
        Brian
        • 3 Years Ago
        @Ronald Mayfield
        Some foreign automakers build more cars in the US these days that the US based automakers. I think that the majority of Hyundais and Kias are as well as many Toyotas, Mazdas and Subarus. My 2007 Ford Fusion was built in Mexico as well as the car it replaced, My 2005 Pontiac Sunfire which were built by US-based manufacturers in foreign plants. The home county of a company has no bearing on where they build anymore. US automakers are beginning to come back to the US for production however they still do a fair share in Mexico and Canada. If given a choice and the budget for it, I would rather have a US-built Kia than a Mexico built Ford.
          Julius
          • 3 Years Ago
          @Brian
          Last I checked, the Sunfire was also SOLD in Mexico, so GM making it there made sense - that and the fact that by 2005, the factory in the US making it was converted to make the Cobalt instead (Lordstown, OH).
      joeinstlucie
      • 3 Years Ago
      I am in the market for a new car...however, GM is not on my shopping list. As long as the government and unions own the company I won' take the chance....Looking at Hyundai, Kia and Toyota.....most built in the USA without union interference and quality problems.
        Scott
        • 3 Years Ago
        @joeinstlucie
        Oh yes good idea! buy foreign so more american workers can be laid off.lol
        John
        • 3 Years Ago
        @joeinstlucie
        Not knocking your decision to purchase one of these makes. All auto makers have lemons and recalls. Just check into their resale vs purchase price. We rented a Santa Fe on vacation nice little suv, but it had a weird excelleration after about 40mph. You might want to take an american made car for a test, it might surprise you.
        starzzguitar
        • 3 Years Ago
        @joeinstlucie
        Yes, these makes are made in the USA now, with no apparent drop in quality and no union. For myself, I can vouch for the Kia. I got a loaded Kia Sportage EX in 2006 and have had ZERO problems. My wife exchanged her loaded 2008 Honda Accord coupe for a new 2011 Sportage EX, loaded. Awesome tight vehicle. The bailout mess soured me on GM, but bottom line is they did not have a car I wanted, though I kind of liked the last batch of Saturns they put out. Their SUVs are big and bloated. Notice they are advertising that the Chevy Volt also has a gas engine to lessen "recharging anxiety"? I still don't know if you can drive an electric car from Los Angeles to Las Vegas without recharging...don't think so!
      DarwinianReject
      • 3 Years Ago
      We shouldn't have bailed them out. Sure, it would have been a swift kick to the balls of the suppliers and the economy, but I think everyone involved could have recovered more quickly from that than from the continuous stream of tax payer subsidized failures. And everyone would have been better off.
        Julius
        • 3 Years Ago
        @DarwinianReject
        So instead of subsidizing GM (who at least are selling products) and who have taxpaying employees, we would rather subsidize those laid off from a Chapter 7 closure through unemployment insurance? Or would we just say "deal with it and go find a job" to them, kinda like what we're doing with long-term unemployment benefits now?
      • 3 Years Ago
      [blocked]
        Dean Hammond
        • 3 Years Ago
        know where most of the parts for that American honda got shipped from.....?
      pineway259
      • 3 Years Ago
      Although I have four GM cars in my garage, the lastest crop of cars don't really appeal to me. Over priced and with the Obama economy in the dumps, why would I get a a new one. All mine are paid for, but all have some miles on them...the lowest is 90,600. I figured the any government program would fair just by knowing just who made those decosions, elected idiots who cannot manage their own money, but know how to waste the taxpyers $.. Socialism fails when it runs out of other peoples money to spend.
      sinckart
      • 3 Years Ago
      GM has been producing garbage for more than 40 years, waving the American flag in front of it and asking it's citizen to buy their crap ...and now they are wondering why they are failing? Really?
      Fred
      • 3 Years Ago
      So, does anybody know? How much would GM have to pay to 'hire away' Totyota designers. Ot Honda's of... I sure that GM can build a good car. It's their designs that are so awful.
        DarkKnight67
        • 3 Years Ago
        @Fred
        And the ones coming from Toyota and Honda are good? I saw a new Camry this afternoon and couldn't tell the difference until it was going away and I saw those ugly taillights.
      stclair5211
      • 3 Years Ago
      Think we all knew this would happen. Someone ask the folks who lost the 169 billion in debt GM had how they feel or the bond holders, shareholders or taxpayers. Or the retirees they are screwing over. You made a promise to my grandfather GM. He's 86. Keep your f&cking word. Screw GM. Put that in an ad. Yeah Chevy runs deep all right. Right up America's a$$ and half you clueless idiots don't get what's going on.
        Scott
        • 3 Years Ago
        @stclair5211
        why screw gm. The banks are the crooks that gave all the bogus loans and caused the whole crisis anyway. gm couldn't get any credit to keep running. ford mortgaged all their assets before the crisis and were able to weather the crisis. alot of companies went under.
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