An old joke: “How do you plan to buy for $1 and sell for 75 cents and stay in business?” Answer: “We’ll make it up in volume.”
In an attempt to draw a clear contrast between himself and his Republican opponent, President Obama on Thursday touted his supposed “rescue“ of the auto industry and claimed that he intends to do the same for ”every industry”:
“I said, I believe in American workers, I believe in this this American industry, and now the American auto industry has come roaring back,” the president said during a campaign speech in Pueblo, Colo. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.”
“I don’t want those jobs taking root in places like China, I want those jobs taking root in places like Pueblo,” he added.
So sayeth he who touts himself as a citizen of the world.
The president also advocated the renewal of tax credits for “green” energy projects and spoke about establishing credits for companies that bring jobs back from overseas.
“Gov. Romney brags about his private sector experience, but it was mostly invested in companies, some of which were called ‘pioneers of outsourcing,’” the president said. “I don’t want to be a pioneer of outsourcing. I want to insource.”
Sure, like Solyndra. Then there’s GM itself:
GM’s bigger problem may be a stock price that’s in retreat, prolonging the day on which U.S. taxpayers will get back their remaining $26.5 billion investment in the company.
GM is a vastly better company than it was three years ago, when massive losses forced it into an unusual Chapter 11 filing, with Uncle Sam providing much of the funding needed for a fresh start. But the automaker has hit a rough patch this year. Second-quarter earnings tumbled 41 percent from 2011, and overall revenue fell, too. Losses in Europe are the biggest drain on GM’s profits.
But the huge automaker has also stalled in its home market. North American car sales are up 14 percent so far this year, but GM’s sales have risen only three percent. Its market share has fallen from nearly 20 percent a year ago to less than 18 percent. GM’s stock price, which enjoyed a nice runup for the first three months of 2012, has since fallen back to about $20, leaving it flat for the year.
The downshift seems to have scotched any notion of the government selling its stake in the company prior to the November elections, since that would amount to a taxpayer loss of roughly $17 billion, and a major embarrassment for Obama.
Nah, Obama is beyond embarrassment.