General Motors (GM) recorded its largest profit in 11 years during the first quarter of 2011, earning $3.2 billion in just the last 3 months -- almost $1.5 million per hour (24 hours/day). GM sold 2.2 million vehicles lifting total revenue 15% to $36.2 billion.
GM's outlook continues to look strong despite ongoing safety concerns and recalls of some GM vehicles. GM recently recalled 170,000 vehicles including its popular Chevy Cruze because of steering wheel concerns.
People injured by GM products prior to its bankruptcy, however, have been left out.
GM's strong financial outlook comes even after it assumed liability for injuries and deaths caused by defective vehicles manufactured or sold before the "new" company exited bankruptcy. GM's decision to stand behind its vehicles ensures that those injured by vehicle defects will have a means of recovery and the costs of those injuries will be borne by the company rather than shifted to taxpayers through Medicare and Medicaid programs.
Left out, however, are those who were injured or killed by defective GM vehicles before the company exited bankruptcy. Those with pending claims -- even if they had already received a verdict -- and those newly injured before GM exited bankruptcy have been left out and treated as unsecured creditors and are expected to receive little or nothing, even as GM has raised billions of dollars from its IPO. These people -- now twice victimized -- are part of an unreported "auto bailout" in which taxpayers will pay for GM's product defect liability through Medicare, Medicaid and Social Security. The "new" GM should have accepted liability for all of its vehicles and not lumped these victims in with other unsecured creditors.
(c) Copyright 2011 Brett A. Emison
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has g m repayed its loans back yet?
GM received $52 billion in aid from the federal government. Only about $6.7 billion of that amount was in loans, which GM paid back in April 2010.The remaining balance was to be satisfied by the government's ownership interest in the "new" GM -- $2.1 billion in preferred stock and about 61% ownership in New GM's common stock.GM had an initial IPO issuing public shares of stock in the company in November 2010. The IPO raised $20.1 billion, valuing the shares at $33.00 each. The government's stake dropped from 61% to about 33% following the IPO.GM stock will need to rise to $48.58 for the US government to break even.
another reason never to buy a government motors crap vehicle
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