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Former GM Bondholder Mark Modica on GM’s plans to sell the all-electric "Spark" in the U.S. despite weak demand.
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Clintons pushing them GM is making more of them.
General Motors unveiling its all electric sport vehicle today and now it's smaller than -- Chevy Volt.
The electric gas hybrid that's so far you know what not -- and a lot of interest on car lots.
Former GM bond holder Mark Lopez says it looks like that government.
It's behind the wheel on this move mark welcome we really appreciate you coming on.
Mark first up -- -- it gets laid out for the viewer when GM was restructured what happened to your bond investment in GM.
Well we -- boy you're basically subordinated to the more politically powerful UAW.
Typically bondholders would have been.
But at the head of the line back down.
Contract -- was kind of trampled and we were put at the bottom of the list in.
More favored groups like the UAW.
-- got the majority of GN I I sold mine at a loss but.
You know we're moving on now in just that a -- and GM and it seems like it's being run as you had said as it is a government run industry.
I'm mark aren't so you don't have any more money and GM but.
To use sale look at we -- to be the greenest car maker in the world we want to unseat tell you -- we want to beat Nissan.
We want to basically have the best Green cars in the world what's wrong -- that.
Well it seems like that's a political goal and not an economic -- this is publicly traded company that should have obligations to its shareholders.
These these cars aren't making money for the shareholders -- for GM.
They're saying they want to compete with the Nissan leaf.
The car sells about a thousand cars a month it.
They should be competing with cars like the Ford Fusion -- Hyundai Sonata which sell about 1000.
A month you know we've seen the -- then and -- that's not selling a lot of vehicles and worst of all these cars -- being produced at the expense of the tax -- They were given grants and low interest.
Loans from the Department of Energy -- to produce these cars and on top of that.
Purchasers of the vehicles get 7500.
Dollars in tax subsidies.
11 when He to the thing just old.
Markets are fundamental problem with today with electric cars and that is this you could be driving around in a blizzard.
And all of a sudden the battery goes out because -- battery can be drained and it can go cold.
And a blizzard and then what do you do.
I know they've made it gets back up with the -- -- with this if it all electric vehicle comes out may would you wanna buy it because of that.
What well that's one of the issues the bottom line is that technology's just not there to make these things feasible.
Without a lot of taxpayer subsidies.
Me yeah you know the government should do is get out of the industry -- GM make cars that the consumers want in that are profitable.
Trying to force these electric vehicles out there before.
-- neither the public is ready for them and the electric grid isn't ready for them.
And that they're not gonna sell a lot not I wrote a piece today on the national legal policy.
National legal policy center site threat talking about -- another thing that GM is doing with the volt.
They're actually using the card helped -- sell Chevy cruises so the taxpayer investment.
-- that went into producing the -- With the promise of Green jobs saving the planet -- global warming.
And the lowering foreign fuel dependence.
That money was spent the basically lure customers into showrooms to switch into a -- Well let's let's let's not on and that's on -- I -- -- I wanna quickly address this issue about.
You know they've what you brought up quickly about the pressures being put on the electrical grid in this country which is -- -- already very fragile.
And also the issue that electricity is made from coal let's spews out a lot of pollution into the air.
I know sources enough fossil fuel -- oil and gas to.
As much -- more.
Oh absolutely -- that seems to be something that people are paying attention -- On top of that the lithium ion battery production and disposal is a problem -- so they're not there's been studies that show that the volt does not even -- and it is Green.
As an internal combustion engine because of the battery all right him battery issue.
OK -- we got to leave it there mark Monica says thank you so much former GM John Holdren now liken -- GM push to be grain.
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