by Curtis Coleman at The New South Conservative
Some of that $50 billion of our tax money that was used to bailout General Motors last year is finally creating jobs – in Mexico. With the U.S. economy losing 131,000 jobs last month, General Motors announced last week that it will invest $500 million to produce a new vehicle and eight-cylinder engines in a plant in northeastern Mexico. The investment in the GM plant in Ramos Arispe, Coahuila state, would generate 390 jobs, according to a company spokesman.
In April, GM announced that it had paid back $8.1 billion in loans it received from the U.S. and Canadian governments. Of that, $6.7 billion went to the U.S. treasury. But U.S. Senator Charles Grassley (R-IA) said in a letter to the Securities and Exchange Commission (SEC) that a form filed by GM showed that $6.7 billion of the tens of billions the company received was sitting in an escrow account and available to be used for repayment. ”The bottom line seems to be that the TARP loans were ‘repaid’ with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials,” he wrote.
Meanwhile, Ford Motor Company is reportedly having a banner year. Although Sen. Harry Reid (D-NV) claimed recently that Ford “would probably be gone” without the auto bailouts, Ford did not accept any of the billions of dollars in taxpayer-funded bailout money. Instead, Ford decided to make money the free market way, preemptively leveraging its assets and remaining afloat in exchange for debt. ...Read more
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