A picture is worth a thousand words. Here are several that tell the $82 billion auto bailout story a whole lot better than the Barack Obama Administration has.
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?
Gross Profit Margin
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?