Ford had total after-tax profits for the five years from 1995 to 1999 of $29 bil, even excluding its $16 bil gain from spinning off The Associates.
And General Motors registered total after-tax profits for those same five years of $28 bil.
So it wasn't just the start of the Internet, but also the auto industry, which were major players in making the US economy so robust in its go-go years in the last half of the 1990's.
How times had changed by 2009. General Motors had a Core Pretax Loss of $24.5 bil, Chrysler a Loss of $8.1 bil, and Ford a Loss of $2.1 bil.
Enter the Obama Administration.
Despite opposition from nearly all Republicans in the US Congress, the Obama Administration took bold actions to revive the considered-for-dead US auto industry.
Objectively, how did they do? By any measure, a clearly miraculous rescue, which continued in 2011.
There are 28 US Motor Vehicle and Parts Corps with Pretax Income or Pretax Loss of more than $100 mil in any of the most recent three years. I am including both Delphi Automotive plc, a Jersey corporation, and Autoliv, a Swedish Corp, because they both have such substantial operations in the US.
These 28 Big US Motor Vehicle and Parts Corps registered a Total Pretax Loss of $36.4 bil in 2009. In 2010, these same 28 Corps generated Total Pretax Income of $20.7 bil. Yeah, that's an almost unbelievable $57.1 bil Profit turnaround in just one year.
So, how did they do in 2011? Just great.
In 2011, these same 28 Corps generated Total Pretax Income of $27.8 bil, an increase of a robust 34% over 2010.
How can a reasonable person vote for Republican Presidential Candidate Mitt Romney, who still boldly, stubbornly, close-mindedly, and even cockily states that the Obama Administration's rescue of the Auto Industy was a very bad idea?
I suggest that it wouldn't be good for the US to have as its President someone who is so out of touch with reality.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Intangible Asset Impairments, Gains/Losses on Debt Retirements, and Reorganization Gains/Losses.
Below here is the Pretax Income (PTI) or Pretax Loss (PTL) of these 28 US Big Motor Vehicle and Parts Corps for each of the most recent three years.
|1 Year||2 Year|
|mils $s||mils $s||mils $s|
|Motor Vehicle and Parts|
|Total all 28||27,831||20,738||(36,433)||34%||176%|