Making fuel-efficient cars will create hundreds of thousands of jobs

[one...two...tree 2,762]

Jobs … who needs 'em? Not Congress, apparently. (The unemployed thank you for that debt deal! Or not.) But it turns out that the new fuel economy standards that President Obama announced last week will create jobs! Somewhere between about 500,000 and 600,000 of them by 2030, according to a report by Ceres, a group that works on sustainability issues:

The 54.5 mpg standard that Obama announced falls somewhere in between the 4 percent and 5 percent scenario. Now explain to us again why Rep. Darrell Issa, the Republican chairman of the House oversight committee, is making a stink about the fuel efficiency standard?

straight to the source

• Results of New Report Showing Economic Benefits of Strong MPG, Ceres

[Ban Hammer 13,726]

Now explain to us again why Rep. Darrell Issa, the Republican chairman of the House oversight committee, is making a stink about the fuel efficiency standard?

maybe because the last time the public was told something would create jobs (cough cough stimulus) it failed to deliver?

[Obama 2012 1,714]

creates 500,000 jobs, while killing 2,000,000

[mawilson 2,133]

Somewhere between about 500,000 and 600,000 of them by 2030

500,000 jobs by 2030? It's laughable.

We have to add about 7,000,000 jobs just to get back to where we were before the recession.

[B_J 2,752]

Is there a demand for these cars and will they make the company a profit?

[lostinblue 1,989]

GM Confirms Slow Chevy Volt Sales

Submitted by Mark Modica on Tue, 08/02/2011 - 14:02

Email to friendPrinter-friendlySales of the much-hyped Chevy Volt fell to new lows as did GM share price as July auto sales figures came in. Only 125 Volts were sold during the month of July. Recent reports attributed the slump to supply constraints as GM spokeswoman, Michelle Bunker, was quoted as saying that the Volt was "virtually sold out" and only a "few" were available nationwide. I have confirmed that this statement is not entirely truthful and have gotten clarification from GM through Director of Communications, Greg Martin.

A search of cars.com site showed nearly 500 Chevy Volts listed for sale. I had originally assumed that GM dealers were advertising vehicles that were not actually available for sale, since GM has stated that there were only a "few" Volts available. I decided to call a few dealers within 75 miles of my location to determine what the true situation was. I stopped my research after finding that five of the first six dealers I called had Volts in inventory available for immediate sale. Two of the five dealers even had two each in stock. I can now safely assume that GM is, once again, not being entirely honest with its facts. The demand for the Chevy Volt is not as strong as GM would have us believe.

Martin confirmed that there are Volts available at dealerships. According to Martin, there are 116 new Chevy Volts available for sale to the public at dealerships, plus demo units that can be sold.

While I was discussing the situation, I also questioned recent comments from GM CEO, Dan Akerson, who stated on a CNN interview that GM had 35 to 40 billion dollars of cash on its balance sheets. The latest SEC reports listed current cash and cash equivalents at about 20 billion. Martin suggested waiting until Thursday's GM quarterly earnings report to see what the number looks like. I find it hard to believe that 15 to 20 billion dollars has materialized since the last earnings report. It is more likely that Mr. Akerson is either being dishonest regarding the true figure or totally uninformed about the financials of the company he manages. Judging from GM's modus operandi, I would guess that he is not being totally truthful.

Another question that arises is why the media is so gullible when it comes to reporting statements made by GM. The Chevy Volt comments are very easy to verify. It was not hard to get to the truth about the number of Volts available, why does the media spread the unfounded hype for the Chevy Volt? Why would the comment by GM on balance sheet cash go unchecked?

The Chevy Volt will not be a big seller for GM; the car just doesn't offer enough value to get a large part of the population to purchase one. The few consumers that choose to purchase seem to be satisfied with their decision, that's great. That doesn't mean that sales are going to take off just because GM will build them at a faster pace. I have to believe that GM knows this. I just can't figure out why they continue to play out the hoax that the Volt is going to be a blockbuster for the company. Perhaps they will sell a bunch to the Obama Administration (at a cost to taxpayers) and to GE (headed by Obama crony Jeff Immelt), but beyond that there will not be huge demand.

GM shares are trading at a new low today. This is indicative of the fact that the smart money on Wall Street is not buying into the GM hype. What bothers me most about the misleading media and analysts' coverage of GM is that the people who will get hurt the most are, once again, the little guys who have no one to look out for their interests. Institutional money managers know better than to buy on the GM hype. At the time of GM's IPO, some TV networks started a campaign to get all taxpayers to buy into the IPO so that they "could benefit." The implication was that GM had no where to go but up. Shares from that time are down about 20% and lagging the broader S&P by about 25%. I really have to wonder if there will be some liability for those who have hyped the GM story without proper disclosure that investors should seek advice from an investment adviser before making investment decisions. Particularly if that hype was in any way influenced by GM ad dollars.

Thursday's earnings report for GM will be closely watched. Analysts should be vigilant for any accounting shenanigans given the history of GM not being entirely truthful with the facts. And if GM shares continue to fall, some hard criticism should be leveled against the Treasury's decision to continue to risk taxpayer money on its GM gamble. Congress has much to consider investigating as the GM story unfolds.

Mark Modica is an NLPC Associate Fellow.

http://nlpc.org/stories/2011/08/02/chevy-volt-sales-slump-gm-clarifies-%E2%80%9Cvirtually-sold-out%E2%80%9D-comments

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[slim 1,533]

Does it say anything about those jobs being in China?

[spookyturtle 9,466]

500,000 jobs by 2030? It's laughable.

We have to add about 7,000,000 jobs just to get back to where we were before the recession.

I guess that if it takes 20 years to add 500,000, we're talking about 280 years to get the 7 million we currently need.

[Zero Sum 305]

GM profit nearly doubles on stronger pricing

Ben Klayman And Kevin Krolicki

DETROIT (Reuters) - General Motors Co's quarterly profit nearly doubled, beating expectations, as the top U.S. automaker took a larger share of sales globally and raised prices on its vehicles.

Coming out of bankruptcy, GM Chief Executive Dan Akerson and other executives said the company had stripped out enough costs to recession-proof the business so it could thrive even in a weak auto market. The industry's sales slump in the second quarter and the risk of a double-dip recession could provide the first major test for that claim.

"There is an increased level of uncertainty," GM Chief Financial Officer Dan Ammann told reporters. "But what we're trying to do, and what we've done successfully, is to configure the business with a low break-even point and a strong balance sheet so we can handle whatever scenario comes along."

GM shares rose 2 percent in premarket trading. Earlier in the week, they fell to their lowest level since the company's initial public stock offering last November as investors worried how GM will fare if consumers tighten their purse strings in the sputtering economy.

The U.S. automaker is pushing heavily into smaller, more fuel-efficient cars like the popular Chevrolet Cruze, but a good portion of its profit still relies heavily on sales of more profitable trucks in the U.S. market.

Net income in the second quarter rose to $2.52 billion, or $1.54 per share, from $1.33 billion, or 85 cents per share, a year earlier.

The earnings per share blew past the $1.20 analysts polled by Thomson Reuters I/B/E/S had projected on average.

Revenue rose 19 percent to $39.4 billion, above the $36.74 billion analysts had expected during a quarter in which U.S. auto sales hit a soft patch.

The results represent the second full quarter since GM's IPO and a restructuring intended to keep the largest U.S. automaker profitable through the industry's punishing boom-and-bust cycles.

GM emerged from bankruptcy in 2009 after a $52 billion taxpayer-funded bailout orchestrated by the Obama administration. The U.S. Treasury still owns 32 percent of GM's common shares.

The company boosted its second-quarter earnings before interest and taxes by $1 billion by pushing through higher prices on its vehicles globally.

GM's said its share of global vehicle sales rose to 12.2 percent in the quarter from 11.6 percent a year earlier.

GM reported profits in all its operating regions, including Europe where it has been struggling to restructure its Opel unit. It was the first time all four regions were profitable since the IPO.

However, those gains came as its Japanese rivals, led by Toyota Motor Corp, struggled with fewer vehicles to sell due to the earthquake in Japan in March.

Analysts worry that if the U.S. recovery hits a pothole in the second half, GM could be forced to raise incentives on its vehicles to lure shoppers. GM's first-quarter results were marred by heavy incentives, but the automaker dialed back those deals.

The automaker also faces a new challenge in the second half as Toyota and other Japanese automakers return to full production levels and look to make up lost ground in sales.

For the second half of the year, GM expects its adjusted earnings before interest and taxes to be "modestly" lower than the first half, but the full-year results to improve over 2010.

GM ended the quarter with total liquidity of almost $40 billion, up from $36.5 billion at the end of June. However, investors will likely have to wait on share buybacks or dividends as Ammann said the company's focus would be on maintaining its "fortress balance sheet" to reinvest in the business and withstand any economic shock.

Link.

08/04/2011