Bailout

3077 words, 13 pages

Intro Sample...


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Coming into his first term as President, a huge controversial issue that President Obama had to take a stand on was whether or not to bailout American car company General Motors, as the company was strongly affected by the weak United States economy. After advocating and eventually handing out a huge bailout several years ago, General Motors is again in the spotlight because of its large amounts of investment in plants in Mexico to outsource work. Many American taxpayers believe it is wrong for General Motors to give jobs to non-Americans especially after the huge government bailout it has received in the past. It is, however, in the US government’s, American taxpayers’ and consumers’ best interest for General Motors to... View More »

Body Sample...


Overall, the big impact of the General Motors bailout was the saving of 1.4 million jobs worldwide (Miller 1). Still, in accordance with General Motors’ restructuring plan mandated by the US Government, General Motors cut 22,500 American jobs and closed 13 American plants from 2005 to 2010 (Ensinger 1). As of April of 2010 General Motors CEO Ed Whitacre stated: “I am very pleased to announce that as of today, General Motors has repaid in full and with interest the loans made last July by the US Treasury and Export Development Canady” (Valdes-Dapena 1). Of course the April repayment only accounts for the cash loaned to General Motors, not the shares that the Treasury still held at the time.
Moving forward a couple of years after the bailout, General Motors began to invest in its expanding of manufacturing operations in Mexico (“Fox News Latino”). Up to 2010 the company had already invested $3.67 billion in Mexico production plants (Ensinger 1). In June of 2013 General Motors announced another investment round of $691 million to expand manufacturing operations in Mexico in order to build new, more fuel-efficient vehicles (Fox News Latino). Ernesto M. Hernandez, the president of General Motors Mexico stated: “GM is about to reach 78 years in Mexico and we celebrate it with this new investment, which means more employment and development opportunities for the regions of Silao, San Luis Potosi and Toluca; and more advanced technology that will benefit our customers” (Fox Latino 1). Hernandez’s statement was coupled with the news that part of the investment went to building a ...

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