So How Is That Government-Run Auto Company Working Out?
Mike Brownfield /
It’s been nearly a year since the Obama administration took the reins of General Motors, and if today’s headlines are any indication, things aren’t looking good for the troubled Detroit auto maker.
First off, GM just isn’t making money. It posted a $4.3 billion loss for the second half 2009 – far from profitability, far from a government-led turnaround. The company claims it has a chance of “achieving profitability” in 2010, but keep in mind that GM is $50 billion in the hole to the American taxpayers, who paid for a bailout in 2009.
And those taxpayers can’t recoup their losses until the U.S. investment in GM is sold, which won’t happen until someone actually wants to buy the company. With $4.3 billion in losses, don’t expect buyers to come running anytime soon.