The Sorrows of General Motors
1:21 PM, May 21, 2014 • By GEOFFREY NORMAN
The bailout of GM – at a final cost to the Treasury of $10 billion and change – was a landmark event in evolution state capitalism, American-style. The company was saved, certain creditors were stiffed, the unions were protected, and the corporate culture, it seems, was not altered in any fundamental way. Which is to say, they still make ‘em the way they used to at GM, when the company was fast going broke.As Ben Klayman of Reuters reports, the company recalled:
... 2.6 million vehicles globally, raising the number of vehicles it has recalled so far this year to almost 15.4 million.
And that was not the end of it. This morning, Reuters reports, the company:
… is recalling more than 218,000 older-generation Chevrolet small cars in the United States and its territories due to a potential fire hazard, adding to a record recall total for the year by the largest U.S. automaker.
So, it looks, increasingly, like what the taxpayers got for their $10 billion is a lemon.