Profit or Loss for the New General Motors – Presto/Chango

By: Richard H. Frank

General Motors, now government owned, has a new public relations policy. The liberal main stream media and the spinmeisters appear to have joined forces and are jumping up and down with glee reporting that the New GM posted an 11.5 % “JUMP” in profits over last year. What they really mean is that GM lost less. Notice that they avoided presenting any real numbers in the press release but resorted to using percentages to give the illusion that the company was profitable. I guess this is another tactic learned from “Rules for Radicals”.

In fact General Motors has not shown a profit since 2004. When they use the term “over the past year” are they referencing the $38.7 billion lost in fiscal year 2009 or the $10.9B loss recorded in the first two quarters of 2010 for the New General Motors? In either event it would seem that they lost less by $3.5B or $1.25B. What remains unknown in this report is the accounting principles used to arrive at these numbers, such as , do they include the $12B government cash infusion in the second quarter of the New GM which was in addition to the previous $35B bailout?

Please , don’t misunderstand, I could not be happier if General Motors were to recover and resume their position as the number one auto manufacturer in the world. The only thing that the tax paying public, “Shareholders in the New General Motors”, ask is that we receive the straight truth about the ongoing profit and/or loss of the business. Government uses enough deception and manipulation already with regard to the budget, national debt, the CBO and all the rest of their spending without having to use “slight of hand” regarding the real numbers for the New (government motors) GM.

One Response

  1. I will not spend one dime with GM until the Gov. is out of the picture.

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