Whether the cars were actually needed or not, it kept union workers busy making them. Makework projects to keep union workers employed, that's not a new idea at all.
Question is, what to do with them? Back in the old embargo days, there were rumors that the Japanese bought US cars (as a sign of fair, two-way trade in autos) them dumped them off the transport ship in mid-ocean. I wouldn't be surprised if surplus GM cars are bought by US fleets, given away or sold for scrap having never been driven. Government ownership means government waste, after all, and we can't have all that unsold inventory depressing demand.
Alternatively, Obama may be looking for ways to MAKE people buy GM, like tax incentives or Cash-for-Clunkers II...
No doubt you’re right, the Criminal In Chief will come through for GMUAW.