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The bailout and nationalization of GM and Chrysler, masterminded by U.S. Presidents Barack Obama and George W. Bush continues to show signs of success.  (Source: Mandel Ngan / AFP/Getty Images.)

GM and Chrysler each announced plans to hire 1,000 new engineers. GM's one thousand new employees will all work in Michigan, as will most of Chrysler's.  (Source: GM)
Signs of automakers' recovery continue

General Motors Company is now majority owned by public investors, with the government's stake reduced from 61 percent to 26 percent thanks to a $23.1B USD initial public offering of stock.  The government's stake is currently being further reduced by sales of stock to banks and investment firms.  It now looks possible that the taxpayers will be fully repaid their bailout "investment".  And GM has been profitable since the start of the year.

While Chrysler Group LLC is unlikely to fully repay the money the government poured into it during bankruptcy and is still not profitable, it also has a bit of success to report.  It has cut its losses and its sales are currently on the rise.

Both companies announced good news on Tuesday.  GM announced that it would be creating 1,000 new high-tech engineering and research jobs in Michigan over the next two years.  The new hires will work on designing new EVs and hybrids for GM.  

Meanwhile, Chrysler is boosting its work force by 1,000 technical professionals, as well.  Some of its new hires will come overseas, but most will work in Auburn Hills, Michigan at its headquarters and technical center.  Chrysler is recruiting at 35 college campuses and is asking for resumes.  It hopes to have its new hiring complete by April of next year.  The smaller automaker was less specific about the roles of the new hires, though presumably many of them would be designing hybrids and EVs as well.

While Chrysler's plans for EVs have become vaporous of late, GM is prepared to lead America's mass market auto industry into the realm of full electrification.  The company will be delivering its brand-new 2011 Chevy Volt EV to showrooms and customers who pre-ordered within a week or two.

The new EV has garnered substantial attention and won several top automotive publications' "Car of the Year" honors.

The company will begin mass sales of the vehicle next year, with plans to ship 10,000 to 15,000 Volts.  In 2012 it tentatively plans to boost production to 60,000 units.  The company is also hoping to bring a crossover-SUV electric vehicle to market sometime in the next several years.  That vehicle will likely be based on the Chevy Volt MPV5 concept, unveiled earlier this year.

GM has invested $700M USD in Michigan to produce the Volt's battery pack, powertrain, and body, revamping and reopening several production facilities.  In the process it has created a number of manufacturing jobs, aiding Michigan's desperately struggling economy.



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RE: The taxpayers will be repaid?
By mellomonk on 12/1/2010 5:21:04 PM , Rating: 4
The IPO went pretty well and with business looking good, the government owned shares are pretty valuable. It seems more and more likely that the government will at least break even, if not profit. The question is how long they will hold on to their shares.

Turn off fox news and pick up a Wall Street Journal or something. The auto industry bailout though distasteful, was absolutely necessary for US industrial and technological prowess. The loss of jobs through the industry and it's suppliers is bad enough. The collapse of either or both Chrysler and GM would be terrible blow to the economy. Sometimes it is necessary to culture and invest in a particular industry when it is for the greater good. The right wing types have no trouble with the concept if it is a defense related company even though even the largest of those has but a fraction of the economic impact of GM, it's dealers, and suppliers. Pure capitalism is as evil and reckless a concept as pure socialism.


RE: The taxpayers will be repaid?
By Nfarce on 12/1/2010 9:30:12 PM , Rating: 1
"Turn off fox news" blah blah "right wing types" blah blah.

Bed wet much there, lefty? When you subvert the bankruptcy laws, steal power from the GM investors to give to your political cronies (UAW) - and give them several unearned seats on the board of directors - you undermine the entire bond markets credibility. Particularly the credibility of the US.

But this is the same administration that finds it perfectly acceptable to just print more US dollars and throw them into the economy as if that won't have any repercussions on anything either. Particularly inflation and the dollar value.


RE: The taxpayers will be repaid?
By mcnabney on 12/1/10, Rating: -1
RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:28:37 AM , Rating: 2
Relatively speaking, deflation is today thanks to the sour economy. I'm referring to inflation tomorrow with currency just being pumped into the economy. You do understand that more money artificially put into the economy causes prices to rise, right?


RE: The taxpayers will be repaid?
By Flunk on 12/2/2010 9:08:43 AM , Rating: 2
"But this is the same administration that finds it perfectly acceptable to just print more US dollars and throw them into the economy"

The last administration did this too, the main problem is the enormous deficit. Without a balanced budget they're going to keep doing this.

The only real solution is to tax more or cut back social services, although at this point I think they would have to cut ALL social services to break even.


RE: The taxpayers will be repaid?
By cruisin3style on 12/2/2010 3:39:16 PM , Rating: 2
Fox News is universally known as biased and the original perpetrator of such "news" except by those who are fans.

Just youtube obama and mccain's interviews with bill o'reilly from the 08 elections

He asks obama "hard-hitting" questions, then asks mccain what he thought about obama's answers to his questions...pathetic


RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:22:00 PM , Rating: 3
Yeah I know. Kinda like MSNBC and CNN and the New York Times asks "hard-hitting" questions - like Jimmy Carter constantly whining about Fox News and wants to shut them down. Not that I get me "news" from them or anything.

Everything is relative...relative to the perspective you are from. I will say this however: O'Reilly has more liberals on his show than Rachel or Keith have on their respective MSNBC commentary shows. And when it comes to Sunday morning broadcast "news" shows like Meet The Press, well, there you have it.


RE: The taxpayers will be repaid?
By FITCamaro on 12/2/2010 8:36:00 AM , Rating: 2
RE: The taxpayers will be repaid?
By Nfarce on 12/2/2010 11:29:16 AM , Rating: 1
Don't give out facts FIT, it just gets people upset around here and they vote you down.


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA














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