Automakers Report Sales Gains, Despite Rising Gas Prices
Source: New York Times
DETROIT Auto sales rose substantially in February despite surging gasoline prices, carmakers and analysts said Thursday.
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Chrysler Group said its sales were up 40 percent from February 2011, while the Ford Motor Company reported a 14 percent gain.
General Motors said its sales increased 1 percent from a year ago, when it had an especially strong month as a result of big discounts.
All three Detroit carmakers beat analysts expectations, as did Nissan, which posted a 16 percent increase.
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Read more: http://www.nytimes.com/2012/03/02/business/ford-and-chrysler-report-sales-gains-despite-gas-prices.html
Consider If Romney had his way Chrysler and GM would be bankrupted.Obama bailed them out.The goverment was paid back,and now
both have seen sales Increase.
former9thward
(32,028 posts)In order to get its money back the Treasury Department would have to make $53 a share in stock. The stock is currently less than half that at $26. So the taxpayers will lose about $17 billion. http://www.nytimes.com/2011/06/08/business/08gm.html
Also when companies enter bankruptcy, as GM did, they are not allowed to carry forward past losses when they come out of bankruptcy. The IRS has given a special waiver to GM so even though they are making profits they will not pay taxes for years to come.
MD20
(123 posts)I am also wondering how the AAWU worker's tax dollars play into all of this. Those saved jobs are still generating taxes. And although that may be a paltry sum, think of the tax dollars generated by associated businesses such as those who make small parts, windshields, tires,batteries etc. From that perspective, the Auto bailouts make more sense.