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Thursday, July 12, 2012

GM BOASTS STRONG JUNE SALES — BUT IS THAT THE WHOLE STORY?

General Motors announced this month   its auto sales increased by 16 percent in June, its best monthly sales gain since 2008. Considering all the company has been through, and the fact that it still owes taxpayers approximately $25 billion in TARP repayments, a 16 percent boost in sales sounds like good news, right?
Who knows? With consumers buying up all these cars, maybe GM can reestablish itself as an auto heavyweight, shareholders will finally get to see a return on their investments, and President Obama will have something to brag about on the campaign trail.
Not so fast.
As it turns out, there’s a big reason GM experienced an increase in sales last month: “government purchases of GM vehicles rose a whopping 79% in June,” according to the National Legal and Policy Center’s   Mark Modica.
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