President Obama’s Treasury Department reportedly rebuffed General Motors push to have the government sell its stake in the company last week, because the sale would have come at a huge loss in taxpayer money. Maybe he should have gotten out while the getting was — well, if not good, at least not worse.
General Motors announced two recalls of 480,000 vehicles to repair a transmission cables problem and a problem with turn signals.
“The driver would be able to remove the key from the ignition, but the door locks may not unlock automatically and the PARK indicator lamp would not be illuminated. The driver may not be able to restart the vehicle and the vehicle could roll away,” GM said in a statement, per the Detroit News.GM has taken on political significance as Vice President Joe Biden loves to say that “bin Laden is dead [and] General Motors is alive” when touting Obama’s domestic and foreign policy efforts. The $50 billion bailout Obama gave GM, of course, entailed putting the company through bankruptcy. “President Obama’s auto task force pressed General Motors and Chrysler to close scores of dealerships without adequately considering the jobs that would be lost or having a firm idea of the cost savings that would be achieved,” the New York Times reported after the bailout. And GM wants the government to get out of the company. “Executives have said the U.S.’s shadow is a drag on its reputation and hurts the company’s ability to recruit talent because of pay restrictions,” the Wall Street Journal reported last week. “But Treasury officials aren’t interested in GM’s offer at the current price and aren’t in a rush to offload shares, according to people familiar with the matter. The biggest reason: A sale now would leave the government with a hefty loss on its investment.”