GM Admits It Lied About Federal Stimulus Package's Job Creation

Robert Farago
by Robert Farago

First, let’s get something out in the open. The Detroit Free Press’ story on the jobs impact of Uncle Sam’s Motown mega-order forgets to mention one salient fact. As TTAC reported back in June, one-third of the 17,600 vehicles ordered from Chrysler, Ford and GM were/are/will be assembled outside the United States. Any article about the order’s effects on American jobs should begin with that fact, which this one has. Surprise! The federal fleet sailing to The Big Three’s rescue did no such thing for American autoworkers. “The overriding purpose of the stimulus was to jump-start the economy and create jobs, though Obama never claimed the vehicle purchases would create jobs. While the latest reports from stimulus recipients show all three carmakers getting orders totaling $270 million so far, job creation from the purchases was nil.” Don’t you just love it when the media pre-apologizes for the President? How about when a major manufacturer lies about its federal blessing to please its federal taskmasters?

In its report, GM initially said the $88 million it had received to date for 5,279 vehicles shipped was responsible for creating or retaining more than 105 jobs.

But the company told the Free Press last week that, as was the case with the other automakers, employment actually “remained static” and the order was incorporated into regular production.

“The government asked us to attach a number of employees to fulfill the order,” said GM spokesman Greg Martin. “The bigger and more important picture is that regardless of where vehicle orders come from, the line continues to run and people continue to work.”

We lied, but the bigger picture is that it doesn’t matter. Riiiiiight. It’s the perfect set-up for the nationalized automaker’s financial results, released tomorrow.

Robert Farago
Robert Farago

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  • Steven02 Steven02 on Nov 16, 2009

    @ GS650G and ZoomZoom 88M went to GM, not the 270M that was spent total. Not that this makes it better, but it is the stimulus math of out gov't. Except they are in the trillions of dollars to create or save jobs, with very fuzzy math.

  • GS650G GS650G on Nov 16, 2009

    OK, that is so much better. we only spent 838K to save those precious 105 jobs. Boy, was I jumping to conclusions about the wisdom of Keynesian government.

  • Tassos A terrible bargain, as are all of Tim's finds, unless they can be had at 1/2 or 1/5th the asking price.For this fugly pig, I would not buy it at any price. My time is too valuable to flip ugly Mitsus.FOr those who know these models, is that silly spoiler in the trunk really functional? And is its size the best for optimizing performance? Really? Why do we never see a GTI or other "hot hatches' and poor man's M3s similarly fitted? Is the EVO trying to pose as a short and fat 70s ROadrunner?Beep beep!
  • Carson D Even Tesla can't make money on EVs anymore. There are far too many being produced, and nowhere near enough people who will settle for one voluntarily. Command economies produce these results. Anyone who thinks that they're smarter than a free market at allocating resources has already revealed that they are not.
  • MaintenanceCosts I wish more vehicles in our market would be at or under 70" wide. Narrowness makes everything easier in the city.
  • El scotto They should be supping with a very, very long spoon.
  • El scotto [list=1][*]Please make an EV that's not butt-ugly. Not Jaguar gorgeous but Buick handsome will do.[/*][*] For all the golf cart dudes: A Tesla S in Plaid mode will be the fastest ride you'll ever take.[/*][*]We have actual EV owners posting on here. Just calmly stated facts and real world experience. This always seems to bring out those who would argue math.[/*][/list=1]For some people an EV will never do, too far out in the country, taking trips where an EV will need recharged, etc. If you own a home and can charge overnight an EV makes perfect sense. You're refueling while you're sleeping.My condo association is allowing owners to install chargers. You have to pay all of the owners of the parking spaces the new electric service will cross. Suggested fee is 100$ and the one getting a charger pays all the legal and filing fees. I held out for a bottle of 30 year old single malt.Perhaps high end apartments will feature reserved parking spaces with chargers in the future. Until then non home owners are relying on public charge and one of my neighbors is in IT and he charges at work. It's call a perk.I don't see company owned delivery vehicles that are EV's. The USPS and the smiley boxes should be the 1st to do this. Nor are any of our mega car dealerships doing this and but of course advertising this fact.I think a great many of the EV haters haven't came to the self-actualization that no one really cares what you drive. I can respect and appreciate what you drive but if I was pushed to answer, no I really don't care what you drive. Before everyone goes into umbrage over my last sentence, I still like cars. Especially yours.I have heated tiles in my bathroom and my kitchen. The two places you're most likely to be barefoot. An EV may fall into to the one less thing to mess with for many people.Macallan for those who were wondering.
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