The Truth About Cars » taxpayer funds http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 30 Sep 2014 15:17:59 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » taxpayer funds http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com U.S. Treasury Loses $11.2 Billion In Accounting Of GM Bailout http://www.thetruthaboutcars.com/2014/05/u-s-treasury-loses-11-2-billion-in-accounting-of-gm-bailout/ http://www.thetruthaboutcars.com/2014/05/u-s-treasury-loses-11-2-billion-in-accounting-of-gm-bailout/#comments Thu, 01 May 2014 10:00:35 +0000 http://www.thetruthaboutcars.com/?p=813385 Detroit Free Press reports the U.S. Treasury lost $11.2 billion in taxpayer money from the rescue of General Motors back in 2008, up from the $10.3 billion estimated after the agency sold its remaining shares back in early December 2013. Part of the final figure came as a write-off of an $826 million “administrative claim,” […]

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File photo of General Motors logo outside its headquarters at the Renaissance Center in Detroit

Detroit Free Press reports the U.S. Treasury lost $11.2 billion in taxpayer money from the rescue of General Motors back in 2008, up from the $10.3 billion estimated after the agency sold its remaining shares back in early December 2013. Part of the final figure came as a write-off of an $826 million “administrative claim,” which was found in a report by the Office of the Special Inspector General for the Troubled Asset Relief Program. The overall figure pales in comparison to the $50.2 billion given by both Bush and Obama administrations between 2008 and 2009 to GM as the automaker struggled through its financial crisis at the onset of the Great Recession.

In other financial news, Automotive News reports the automaker’s new financial arm, GM Financial, has launched a pilot program for prime-risk consumers in preparation for an expansion into the market later this summer. In addition, the auto lender proclaimed last week that it began GM-backed lending in the near-prime market during Q1 2014 alongside its subvented subprime loans. Finally, GM Financial reported a net income of $145 million during the same period — acquiring the majority of former GM lender Ally Financial’s International Operations, as well — with loan and lease originations totally $2.1 billion in the United States and Canada, $4.2 globally.

Another former GM subsidiary is looking into “improper payments” made by employees in China. As Reuters reports, Delphi found a number of these payments by manufacturing facility employees, which could be in violation of the U.S. Foreign Corrupt Practices Act. The supplier is working closely with both the Securities and Exchange Commission and the U.S. Department of Justice, as well as contacted outside counsel to assist. Delphi warned that if what they found was true, the violations “could result in criminal and/or civil liabilities and other forms of penalties or sanctions.”

The Detroit News says GM has begun construction on a new motorsport engine design and production facility set to open in 2016 within its Global Powerplant headquarters in Pontiac, Mich. One hundred engineers and technicians are expected to transfer from their posts in Wixom, Mich. to 138,000-square-foot Performance and Racing Center in Pontiac by the middle of 2015, where they will work alongside the production engine team in sharing technology gathered from the track. The center, part of a $200 million investment into GM’s Pontiac facility, will offer an electric motor lab and a gear center to aid in the development of advanced electric motors and transmissions.

Finally, Forbes posits that GM’s lack of thorough engagement with its customers could once again give some loyalists pause before giving their favorite brand the benefit of a doubt. In one example, the automaker — which already had fewer engaged consumers pre-recall than the likes of Ford, Hyundai and Toyota with their respective recalls — posted the largest post-recall decline while Toyota and Hyundai lost the least after their recalls. The low engagement figures for GM could be a sign of things to come as it works its way through its many issues beyond the original recall in February 2014.

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GM: US Taxpayer-Funded Opel Plans By Christmas http://www.thetruthaboutcars.com/2009/11/gm-us-taxpayer-funded-opel-plans-by-christmas/ http://www.thetruthaboutcars.com/2009/11/gm-us-taxpayer-funded-opel-plans-by-christmas/#comments Thu, 19 Nov 2009 20:24:14 +0000 http://www.thetruthaboutcars.com/?p=336135 Automotive News [sub] reports that GM will rush out its $4.9b restructuring plan for Opel in December, as it seeks to ease worries on the continent about the fate of the troubled division. “Our plan is very similar to Magna’s. I don’t think it’s worse,” GM’s Nick Reilly told reporters near Opel’s largest plant in […]

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(courtesy:ibtimes.com)

Automotive News [sub] reports that GM will rush out its $4.9b restructuring plan for Opel in December, as it seeks to ease worries on the continent about the fate of the troubled division. “Our plan is very similar to Magna’s. I don’t think it’s worse,” GM’s Nick Reilly told reporters near Opel’s largest plant in Zaragoza, Spain. Reily has said that as many as 10,000 jobs and 20 to 25 percent of Opel’s production capacity could be cut in the restructuring. Though Reilly refused to indicate where cuts could take place, he did say that GM would not transfer production from Zaragoza to Eisenach in eastern Germany, as Magna had planned to do. He also previously implied that British government loans could prevent or mitigate a planned 800-job cut at Opel’s Vauxhall operations in Britain.

Meanwhile, back in the U.S.A., questions about GM’s use of bailout funds to save overseas operations are starting to filter into the mainstream media. “We certainly need to be prudent about it, be very careful about it, but we do have the ability to run a global business,” says Fritz Henderson. After all, when asked specifically about the use of taxpayer money in an Opel bailout, Ron Bloom made it clear that the Obama Administration simply doesn’t care. “We are not going to meddle in GM’s decisions,” he said. “We are a shareholder but we are not an active shareholder.” Game on!

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Pennsylvania Resurrects Plan to Toll Interstate 80 Freeway http://www.thetruthaboutcars.com/2009/11/pennsylvania-resurrects-plan-to-toll-interstate-80-freeway/ http://www.thetruthaboutcars.com/2009/11/pennsylvania-resurrects-plan-to-toll-interstate-80-freeway/#comments Tue, 10 Nov 2009 00:40:20 +0000 http://www.thetruthaboutcars.com/?p=334540 Pennsylvania Governor Edward G. Rendell (D) has not given up on his dream of adding toll booths on Interstate 80, a freeway that serves as a vital commercial link between New York and Chicago. On October 30, state officials filed an official memorandum to the Federal Highway Administration (FHWA) reopening the application for permission to […]

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"With 59 existing interchanges, there will be, on average, one toll collection facility for every 5-6 interchanges, allowing many local trips to remain free. The PTC will offer discounts of 10, 15 or 20 percent to their commercial E-ZPass customers that meet established volume requirements for travel on the Pennsylvania Turnpike." (courtesy paturnpike.com)

Pennsylvania Governor Edward G. Rendell (D) has not given up on his dream of adding toll booths on Interstate 80, a freeway that serves as a vital commercial link between New York and Chicago. On October 30, state officials filed an official memorandum to the Federal Highway Administration (FHWA) reopening the application for permission to toll the 311 mile route in order to help balance the state’s budget. “Without tolls on I-80, state lawmakers and the administration would have to plug a $473 million gap in next year’s budget, and that gap will steadily widen,” Pennsylvania Turnpike Commission Chief Executive Joe Brimmeier said in a statement.


In July 2008, the FHWA explained that the governor’s plan did not appear to meet the requirements of federal law for conversion of a federal interstate into a toll road. The state’s new filing with federal transportation officials included further details on the proposal, such as planned locations for electronic toll booths and an extensive financial analysis. The deal, authorized at the state level by Act 44 of the Pennsylvania General Assembly, faces an uncertain future as a number of key political players remain unconvinced that the Turnpike Commission should expand its reach to previously untolled roads.

“This is the same Turnpike Commission that has been the backdrop for several scandals and a slew of indictments,” US Representative Glenn ‘GT’ Thompson (R-Howard) explained in a statement. “Act 44 is a cover-up of years of mismanagement of taxpayer funds and the perpetuation of an antiquated and corrupt Turnpike Commission. This is not fair to the taxpayers in Pennsylvania — not just along the I-80 corridor, but in the commonwealth as a whole.”

An opinion poll taken last year found that 63 percent of voters agreed with Thompson’s assessment. A coalition of business groups, the Alliance to Stop I-80 Tolling, formed to coordinate efforts to block the tolling plan.

“There are simply better options that will generate more money with less hardship,” coalition co-chairman Vince Matteo said in a statement. “The bottom line is that once gantries are up on I-80, local businesses and communities will be crippled and a harsh inflationary rise will be felt throughout the entire commonwealth economy.”

A Grove City College study calculated last month that a 10 cent gas tax increase would raise $600 million at a cost of just 0.5 cents per mile for an average automobile — far cheaper than the per-mile rate of a toll road that requires expensive overhead to operate (view study).

[courtesy thenewspaper.com]

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