GM and Chrysler’s increased profits might make voters choose President Obama again.
In 2008, GM and Chrysler were seeking US government help to be able to pay their bills. This week, the two automakesr managed to beat the Wall Street profit estimates and Chrysler saw its third-quarter profit up 80%. It was President George W Bush who gave Chrysler and GM emergency loans to help them survive until his successor, President Obama will offer a $80 billion rescue plan.
“It had to be fast; it was ugly, and they certainly didn’t play by the rules of who are the preferred creditors,” Maryann Keller, the principal of a self-named consulting firm in Stamford, Connecticut, said of the Obama administration’s auto bailout. “On the other hand, they saved the industry.”
Light-vehicles sales in the US have increased 14% year-to-date and Ford is on pace to reach 14.5 million vehicles this year, the best since 2007. Automakers have increased hiring and added third shifts in at least eight states, while plants in North America have been running at 93.5% capacity in the last quarter. Unemployment, which was 10.6% in Ohio in January 2010, dropped to 7% in September 2012, while in Michigan it dropped from 14.2% in August 2009 to 9.3% in September 2012.