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Welcome back everybody former car czar Steven -- speaking out about bailed -- General Motors in an interview.
On Reuters TV earlier this week.
Ironically the real problems with you that GM are having today.
Are the opposite of the problems that put them into bankruptcy the first place.
It's problems in Europe would -- be nice if they sold a few more votes short but the -- as -- relevant to the profit loss line of General Motors.
What I like -- -- a few more cutting edge edge products yeah.
But but is this company -- the industry going back to the days crazy incentives.
-- -- -- bloated inventories on dealers' lots now.
Critics however saying that some of the details from that and if you need some fundamental fact check.
So here to weigh in as -- president -- -- government see Molly C nice to see you this morning.
-- pleasure being here thank you very much so what's wrong with mister -- statements there that -- problems in Europe largely to blame for struggling GM.
What do you -- to begin.
Where to begin first smallest part of as far as Europe is concerned GM Opel which is the European brand.
Of GM has been terrible for.
-- since at least 2000 if not sooner.
They -- Barrera European buyer lined up in 2009.
To get them out from under GM Opel GM Europe.
And the Obama appointed board of directors for GM scotched the deal.
So for -- to now say.
All we have this problem with Europe they had an out for Europe in 2009.
And Ratner an Obama killed yes that -- -- secondly certainly real quick as far as pre existing conditions.
The -- the main problem old GM -- was there union contracts.
The good news about a bankruptcy through which GM went in 2009 as you break -- your -- -- not in this instance Obama broke.
Eviscerate it bankruptcy law and maintain the United Auto Workers contracts through the bankruptcy.
So the thing that was killing old GM is still killing -- GM all these new problems that -- router points to -- the same problems they had before they went to the bankruptcy in the bail out.
The other thing he addressed there was bloated inventory and ridiculous incentives.
That he said were hurting them then are they hurting them now Chrysler we should mention is doing very very well some maybe there's something those two organizations are doing very differently.
But is that still a problem.
Well look the GM has -- he -- -- for the -- being not part of the profit loss problem for GM.
That's -- that's because they outsource all the loss to us.
-- although all the loss all the subsidies all the bailout money.
-- is audit and the incentives for green energy and green cars.
Is on the taxpayer's dime not on GM's we have five billion dollars in incentives to agreeing cars not just -- the -- But all green cars but beyond that we've got -- 500 dollar checks cut to people who bibles by the taxpayers not by GM.
You wanna talk about incentives -- crazy incentives.
The GM was offering a 150 grand off of next year's products in exchange for selling -- -- a ridiculously low number of volts to sell.
And then say if you tripled this ridiculously low number we'll give you a 150 grand off next year's.
Purchases so so of course and of course is an election year next -- not so so you have -- leases as low for the -- Leases low -- zero down a 159 dollars a month for an 89000 dollar car -- So that that's not a crazy and -- look I'm not a car dealer but that's how would you have a lot of -- and I.
Griffith -- and forget what.
Arnold said it it almost watches out Seton Motley telling us some of the same fundamentals are in place that got us in this mess in the first place great to see you this morning thanks -- thanks a lot appreciate --
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