Government Motors vs Free Market Ford – Tea Party Nation
October 11, 2012
We have been told ad nauseum that the auto bailout was unavoidable – irrevocably necessary. That without it, the entire American auto industry would collapse in a heap.
Well, Ford demurred – they refused to take a government dime.
F = Ford (in blue)
GM = General Motors (in orange)
“New GM” was borne out of bankruptcy in 2010, which is why their numbers pick up at that time.
Bailed-Out GM has had consistently higher revenue. GM and Bailout-Free Ford track fairly evenly, with a between $4 and $4.5 billion (10%-12%) spread.
But that’s revenue. How did that translate into profits?
Bailed-Out GM does worse in gross profit, and breaks about even in straight profit margin and net income. (GM’s late 2011 spike was the result of the federal government making Government Motors purchases.)
How are the shareholders doing? After all, We the Taxpayers still own 500+ million GM shares – 26% of the company. And we’re set to lose more than $14 billion – just on the GM stock with which we’re stuck.
Bailout-Free Ford has been thoroughly, consistently better.
So, Bailout-Free Ford has in several key ways done just about as well – or better – than $50 Billion-Bailed-Out General Motors.
So, again, the question is – why did we throw $82 billion down the auto bailout rat hole?
- Government Motors: GM Announces $220 Million Investment in Ohio Plants (genomega1.wordpress.com)
- Government Motors Files for Divorce from Government; Obama Demurs (pjmedia.com)
- Is Government Motors Headed For Bankruptcy Again? (openmarket.org)
- Obama’s (Un)American Auto Bailout-Michelle Malkin (conservativeread.com)