View Full Version : GM OFFERS 74,000 WORKERS INCENTIVES TO LEAVE!!!!
edpontiac91
02-12-2008, 09:56 AM
Hello, WTF is going on in this country. Just looked at an article on YAHOO and GM wants to get rid of its ENTIRE U.S. work force and REPLACE them with MUCH lower paid NEW employees. If a person with over 10 years is willing to cut ALL ties with the company, they could receive $140,000 in a lump sum. Others will get between $42,000 to $68,000 if they choose to still continue getting their benefits and pensions. So with all the rising costs of living going UP, the MAJOR car companies are looking to greatly reduce the rate their hourly paid workers make. I understand this is "JUST BUSINESS", but it sucks for most of us because it sets the tone for most OTHER companies, and only the boarder crossers will get the benefit because they're used to working for next to nothing! :-x
Knipps
02-12-2008, 10:42 AM
did you also happen to see this one?
http://www.bloomberg.com/apps/news?pid=20601103&sid=a.t3TfK.1Ym0&refer=news
Untamed
02-12-2008, 10:42 AM
It does suck, but the inevitable conclusion to an inability to control costs / generate revenue, is Chapter 11, and eventually Chapter 7 (total shutdown of the business). GM has issues to work out with their cost control activities. I'm neither advocating nor condeming what you're reporting here, just reminding folks that cost control is a very real thing every company and employee must face - some are easier to swallow than others.
I don't have an alternative to continue the discussion, however a mass layoff of "non essential personell" may not be that far away for GM.
SteveR
02-12-2008, 11:28 AM
Coming soon, a stamp placed on every US car: "Made in China"
In other US auto news, Cerberus said that by the end of this year, they will have laid off 1/3 of the ENTIRE Chrysler company. I don't see three US automakers for much longer.
SteveR
02-12-2008, 11:32 AM
did you also happen to see this one?
http://www.bloomberg.com/apps/news?pid=20601103&sid=a.t3TfK.1Ym0&refer=news
"The results indicate Chief Executive Officer Rick Wagoner is delivering on his pledge to rely more on overseas sales while cutting expenses at home."
Exactly. The value of the dollar combined with the quickly shrinking economy and now consumer fears of a recession make for a bad situation. Ford is doing the same thing and trying to strengthen its European market which is already strong. The dollar is so weak right now, that there are stores in New York that now accept the Euro as payment. Thats right, paying for things with the Euro.. in America.
EchoMirage
02-12-2008, 04:56 PM
The dollar is so weak right now, that there are stores in New York that now accept the Euro as payment. Thats right, paying for things with the Euro.. in America.
i heard.....thats ****ing disgusting. the cost of living is so high (gasoline), people are demanding higher hourly pay...which costs the company more. but, for whatever stupid reason, people arent buying enough US cars. hence, what is the comp. (GM, ford, etc) to do? if gas was back to 1.50 a gallon we wouldnt be in this mess.
JL8Jeff
02-12-2008, 05:20 PM
Pensions are killing all the big US companies and also running up our taxes because of gov't workers getting such big benefits. This country has to learn how to unload these pensions and people need to learn to build their own retirement savings. You can't expect a company to stay in business when they're paying more in benefits than the company makes in profits. But with gov't, they just raise our taxes to pay for the retirement benefits. My company does a partial match on our 401K and that's nice. But my retirement will be because of what I save, not what the company pays me.
Frosty
02-12-2008, 06:04 PM
i heard.....thats ****ing disgusting. the cost of living is so high (gasoline), people are demanding higher hourly pay...which costs the company more. but, for whatever stupid reason, people arent buying enough US cars. hence, what is the comp. (GM, ford, etc) to do? if gas was back to 1.50 a gallon we wouldnt be in this mess.
So lower gas prices would save this situation? :rofl::rofl:
Wow....
How about ridiculous UAW demands and contracts. GM also has screwed up big time too.
CJDZ24_Z28
02-12-2008, 08:58 PM
So lower gas prices would save this situation? :rofl::rofl:
Wow....
How about ridiculous UAW demands and contracts. GM also has screwed up big time too.
UAW demands ridiculous? How about getting some non-union untrained scabs to build cars for them:rolleyes:
BigAls87Z28
02-12-2008, 09:20 PM
UAW demands ridiculous? How about getting some non-union untrained scabs to build cars for them:rolleyes:
Works for Toyota...
Frosty
02-12-2008, 09:30 PM
UAW demands ridiculous? How about getting some non-union untrained scabs to build cars for them:rolleyes:
Some of the salaries of noob factory workers is downright ridiculous. Go look up how much GM had to spend for VIAGRA last year and other ridiculous healthcare items then get back to me. Good look up how many workers the UAW DEMANDS be employed at any given time. A friend of the family has cousins that work for GM and they were telling me there could be up to as many as 30+ workers sitting around in their game room at any time with no work making $20+hr to sit on the internet and play ping-ping.
I'm very biased, being in a union once before has left a bad taste in my mouth, most of them are worthless and not needed into today's workplace. They could care less how their demands hurt the very company they work for.
Works for Toyota...
DING!
Savage_Messiah
02-12-2008, 09:34 PM
Pensions are killing all the big US companies and also running up our taxes because of gov't workers getting such big benefits. This country has to learn how to unload these pensions and people need to learn to build their own retirement savings. You can't expect a company to stay in business when they're paying more in benefits than the company makes in profits. But with gov't, they just raise our taxes to pay for the retirement benefits. My company does a partial match on our 401K and that's nice. But my retirement will be because of what I save, not what the company pays me.
Exactly. I have no problem with this, it's what the company needs to do to survive.
CJDZ24_Z28
02-13-2008, 11:49 AM
Some of the salaries of noob factory workers is downright ridiculous. Go look up how much GM had to spend for VIAGRA last year and other ridiculous healthcare items then get back to me. Good look up how many workers the UAW DEMANDS be employed at any given time. A friend of the family has cousins that work for GM and they were telling me there could be up to as many as 30+ workers sitting around in their game room at any time with no work making $20+hr to sit on the internet and play ping-ping.
I'm very biased, being in a union once before has left a bad taste in my mouth, most of them are worthless and not needed into today's workplace. They could care less how their demands hurt the very company they work for.
DING!
Well I'm a Union Carpenter. I make $37.67 a hour pay with benefits and such our total package is like $57.xx a hr. and there are times I sit around for hours. Either waiting on materials or other trades to get out of the way. Sunday was double time for me and i was working in Sunoco and I worked hard but there was a time when i couldn't do my job. I can honestly say Most of the contractors make a killing so that is why we are able to make this pay.
My opinion? I do believe that the UAW should of taken a look at the declining sales and market shares of GM. Yea I do think most Union workers make alot of money. When I 1st got in top pay rate was $32.xx a hr. that was 4 years ago. On the flipside we have to complete 4 years of training with several upgrade college credit courses after that.If the contractor has a problem a worker all he has to do is call the hall and get another guy there.
If GM knew they couldn't afford the pay rate the UAW required then why did they sign off? They're negotiation were not in their best intrest. What there doing now is prob getting 2nd or 3rd year guys to fill the shoes of the guys that our at top rate.
BigAls87Z28
02-13-2008, 11:54 AM
GM actually negotiated a very nice deal with the UAW, creating a retirement fun account in which GM invested 4 billion in it or something, and the UAW would match that. UAW will then put money into this fund, and will take some of the burden off of GM.
This buy out is just a way of freeing up a bit more money. With the dropping dollar, and increasing Canadain dollar, its cheaper to make them here.
Jersey_TA
02-13-2008, 03:24 PM
I think we should just ban all imports from (what country was it) Japan or china since they don't allow most of our products to be sold there....that's if I remember correctly.
WildBillyT
02-13-2008, 03:45 PM
Pensions are killing all the big US companies and also running up our taxes because of gov't workers getting such big benefits. This country has to learn how to unload these pensions and people need to learn to build their own retirement savings. You can't expect a company to stay in business when they're paying more in benefits than the company makes in profits. But with gov't, they just raise our taxes to pay for the retirement benefits. My company does a partial match on our 401K and that's nice. But my retirement will be because of what I save, not what the company pays me.
I agree 100%. I am in the same boat with a 401k- I have to save if I want to retire. And if that means investing my money instead of buying car parts and such, then so be it.
Knipps
02-13-2008, 03:45 PM
i doubt it's china b/c ford's in the top 3 there, (last i heard)
Jersey_TA
02-13-2008, 03:47 PM
i doubt it's china b/c ford's in the top 3 there, (last i heard)
I couldn't remember where I read that or for what country it was lol. maybe I should pay more attention...oh wait I'm broke lol
BigAls87Z28
02-13-2008, 08:03 PM
I couldn't remember where I read that or for what country it was lol. maybe I should pay more attention...oh wait I'm broke lol
In Japan, we cannot sell any cars directly. Any cars they get from America are brought in through some other channels. There is no Chevy dealer in Japan.
China, GM is #1. China is GM's money maker. GM also gives China all the good stuff like RWD Park Ave off the Statesman, while our stupid dealers say "No thanks, we want a FWD bore-o-rama Lucerne".
Friggin dumbass dealers.
Fast92RS
02-13-2008, 08:09 PM
Plus the reason why benifit packages cost so much for employers is the outrageous cost of healtcare in this country. If the healthcare cost were not so out of control, benifit packages would cost less and maybe companies wouldn't out source labor in other countries.
97ws6
02-13-2008, 10:18 PM
If they want to compete they are going to have to change with the times,
No union
401k for retirement
Move from Detroit, down South, have cheaper operating costs, and lower wages, there workers can move with them, its cheaper to live there
Get rid of all there divisions,(just call all cars GM)
Focus on a smaller number of Models, and build them right
Build a car that doesnt run on gas
Advertise like crazy, (This is the new GM)
Export the New GM to the world market
If they do this, they can beat Toyota here, and abroad!
Knipps
02-13-2008, 10:46 PM
:rofl: not gonna happen
Savage_Messiah
02-14-2008, 02:37 AM
Get rid of all there divisions,(just call all cars GM)
Need at least bottom, mid and top (like toyota)
Saturn, chevy, caddy.
SteveR
02-14-2008, 12:29 PM
Move from Detroit, down South, have cheaper operating costs, and lower wages, there workers
That's exactly what Mercedes did, they built a damn CITY in Alabama. Their facility there looked like something out of a movie.
Savage_Messiah
02-14-2008, 01:11 PM
That's exactly what Mercedes did, they built a damn CITY in Alabama. Their facility there looked like something out of a movie.
Mercedes = Umbrella Corp???????????
James... hook me up with soe of that T-V!!
BigAls87Z28
02-15-2008, 05:30 PM
If they want to compete they are going to have to change with the times,
No union
401k for retirement
Move from Detroit, down South, have cheaper operating costs, and lower wages, there workers can move with them, its cheaper to live there
Get rid of all there divisions,(just call all cars GM)
Focus on a smaller number of Models, and build them right
Build a car that doesnt run on gas
Advertise like crazy, (This is the new GM)
Export the New GM to the world market
If they do this, they can beat Toyota here, and abroad!
GM beats Toyota here and abroad now.
Moving south will do nothing for GM. It will destroy a city on the brink. GM has plants all over the US, Canada, and Mexico. Operating costs are gunna be the same no matter where they go. The cost to move the world hq of the worlds biggest automaker would be immense when they just moved into Renn Center, a very beautiful set of buildings.
Getting rid of thier divisions gets rid of years and years of brand management and recognition, and now have to restart all over again.
GM has cars right now that dont run on gas.
GM actually have better sucess as a foriegn brand then as a domestic brand. Yes...GM is admired every where else....but here.
chemicalstylez
02-16-2008, 10:22 AM
i heard.....thats ****ing disgusting. the cost of living is so high (gasoline), people are demanding higher hourly pay...which costs the company more. but, for whatever stupid reason, people arent buying enough US cars. hence, what is the comp. (GM, ford, etc) to do? if gas was back to 1.50 a gallon we wouldnt be in this mess.
Its because everyone thinks Honda's and Nissan's are so fantastic....thats why. OOOO 35 MPG lets throw a party. People don't realize that theres domestics that can get the same milage. Than when their starter breaks its $450 to fix. On a domesitic its like a $150-200 job. Parts on Jap cars are like double and triple the price of any domestic. People don't know anything thats why they buy the Jap ****, they hear it on TV and so they buy them. Their like sheep, they'll follow their blind leader off a cliff and not know the wiser.
1QWIKBIRD
02-16-2008, 11:09 AM
At one time in this country, the unions were necessary to protect workers from big industry and provide saftey regs etc..etc..
Now they are eating themselves alive. The UAW is a prime example of this. Sorry to say, but a person on an assembly line installing seats (just an example) should not and can not expect to make more than $15-18 an hour or 30-36K a year. You can't bitch about the price of new cars and then also demand inflated wages, fully paid benefits and grand retirement packages. Those days are long gone.
Let GM buyout the current workforce clean house and reload with lower priced labor. At the same time they would be wise to retool their entire compensation structure, pay scales, benefits packages, etc..
I'm not saying sweat shop type pay scales, but the reality is that you can't pay someone 40 50 60k a year to work an assembly line job. The economics don't work in the long term.
At least the work would stay on our soil and direclty feed our economy both on the local level and on the national level.
Kids today need to be damn sure they have a willingness to work, a real degree and/or a real skill set up which they can build a career for the long term.
my 38 cents on the topic....your opinions may and probably will vary.
Icemansghost
02-16-2008, 01:02 PM
UNIONS, Thats why five watch while one works motto...... Unions are getting old in this country for that reason. But the ones that can keep it together, are the ones worth fighting for.
Savage_Messiah
02-16-2008, 01:03 PM
UNIONS, Thats why five watch while one works motto...... Unions are getting old in this country for that reason. But the ones that can keep it together, are the ones worth fighting for.
wat
EchoMirage
02-16-2008, 04:05 PM
i dont think people really understand what unions do for the workforce, INCLUDING non-union shops. if it wasnt for the unions on the outside looking in, making sure the non-union shops are at least somewhere on the up and up, the non-union workers wouldnt be making what they are (comparatively) and not have the benefits they do. now i am not a stick waving live-or-die union bigwig, but i just spent FIVE ****ING YEARS of my life going through an apprenticeship, five LONG, SHYTTY YEARS, and ill be god****ing damned if im going to let some asshat bash what i just spent half a decade getting into.
1QWIKBIRD
02-16-2008, 05:16 PM
i dont think people really understand what unions do for the workforce, INCLUDING non-union shops. if it wasnt for the unions on the outside looking in, making sure the non-union shops are at least somewhere on the up and up, the non-union workers wouldnt be making what they are (comparatively) and not have the benefits they do. now i am not a stick waving live-or-die union bigwig, but i just spent FIVE ****ING YEARS of my life going through an apprenticeship, five LONG, SHYTTY YEARS, and ill be god****ing damned if im going to let some asshat bash what i just spent half a decade getting into.
And that's good, but I assume you didn't spend those 5 SHYTTY years to learn how to work on an assembly line either. My guess is you are either a boilermaker/electrician/carpenter/pipefitter/steel worker/operating engineer etc. etc. etc.....and if you excell at what you do, and you bust your ass everyday you deserve all the good that comes your way.
But do you think a person on an assembly line with a very limited skill set making widgets or stamping fenders or bolting in seats or whatever, deserves the same payscale as you? Why do union electricians make more than union laborers? The SKILLSET.....
I guess that's my real bitch with the UAW and any other union that is bleeding companies dry. Certain jobs are only ever gonna net you so much income. You don't like it, get a better SKILLSET and get a better job. Then put in an honest 40hr (at least) week.
How many times have you seen a Verizon truck sitting in the corner of some parking lot and the guy is reading the paper for 3 ****ing hours? Or the PSE&G guy doing the same? Who do you think is paying for all that non-productive time? Would that behavior be tolerated on your job site? Or would you be told to pack your **** and go home?
When I had Verizon Fios installed the guy had 1 Ticket for the entire day, mine. So I asked what do you do now (install took 2.5 hours), call in for more? He laughed.
Know this. I maybe be a son of bitch, but I ain't no @ss hat.
Chris
Tru2Chevy
02-16-2008, 08:13 PM
When I had Verizon Fios installed the guy had 1 Ticket for the entire day, mine. So I asked what do you do now (install took 2.5 hours), call in for more? He laughed.
Yup, exact same thing when I had it installed at my parent's house. 2 guys, showed up at 9:45 am (after they ate breakfast on company time), they spent 3.5 hours installing everything (we were chatting the whole time) and then they said they were off to get a late, long lunch, and then be done for the day.
- Justin
EchoMirage
02-17-2008, 06:23 AM
and just what kind of SKILLSET do you think youre going to get out of someone whos making $10/hr?? if you think the build quality of cars today are low, (which i dont) just imagine what they would be like if some jerkoff was making them for a whole $10/hr, barely making $300 a week. do you think he'd care if every single nut and bolt was torqued properly? do you think he'd care to see that threadlock was applied in the right spots? or that interior parts fit correctly, motors assembled within tolerance, wires connected right, etc etc?? the yugo was made by non-union labor. dont forget that. for someone making that little money, hes not going to give a **** if he does his job right. and if he gets fired.....so what, it was only a $10 job. theyll hire the next guy, who will be just as big of a bag of **** as the last one. do you really think that ONLY unions have people standing around all day? what do you do for a living? ive had plenty of jobs.....all non union......where half the time we stood around, waiting for this, or hiding from that, etc. talk to paul, smokingSS. he told us at the meet that he MIGHT do one hour of 'work' throughout his entire day.......in the ARMY. thats where YOUR TAX DOLLARS are going. you want to beat a drum, go show up there and tell them to find a broom and keep busy.
just because maybe you saw some people slacking off or taking advantage of free time doesnt mean EVERY union does it. many, many union men take pride in thier work, including me and alot of guys i work with. i have personally seen, first hand, the differance in quality of work between scab and union. ive had to go and FIX the things scabs have screwed up before. theyre not trained. they dont go through any kind of schooling or apprenticeship program. theyre not going to care if they lose their job, because anyone can get a $10/hr job. you think that goes the same for someone making UAW wages? he making money, benefits, retirement, plans for the future. he WILL do a good job because he doesnt want to lose the job he has.
you want lower priced labor. you want mexicans from under the fence? some punk kind fresh out of highschool who just barely works to have money for getting drunk or stoned? one of the first things hitler and stalin did once in power was to dissolve unions. is that the kind of thinking youre coming from? no matter what job you have now, there is NOTHING keeping your boss or employer from firing your ass and bringing in a mexican for $5/hr, give him a training video to watch, and send him off. i tell the same to my friend who works for seimens. no matter what training, degrees, experience he has, there is nothing guaranteeing his job from going to someone who will work for less. he has no say, no voice in the work force. the same goes for a guy i went to college with. hes now a surveyor. there are union and non union surveyors. he was recently liscened. so, he wanted more money, and threatened to quit if he didnt get it. his boss gave it to him.......you know why? because if he didnt, he could walk right out the door and join the surveyors union and make the same money with better conditions. if there was no surveyors union, looking in from the outside, his boss would have told him to go screw, and he'd find somone else willing to work for less money.
Frosty
02-17-2008, 07:59 AM
Dude, who said ANYTHING about paying $10/hr and bringing in Mexicans??
So you think an assembly line working should be making $50-60K a year? PLEASE. Not that my job is all high and mighty but an assembly line worker?????????????
It's working fine for Toyota and from what I've read the work force is happy there.
I'm sure GM is going to take any Tom Dick and Harry off the street that has NO experience :rolleyes:
1QWIKBIRD
02-17-2008, 08:17 AM
and just what kind of SKILLSET do you think youre going to get out of someone whos making $10/hr?? just because maybe you saw some people slacking off or taking advantage of free time doesnt mean EVERY union does it. many, many union men take pride in thier work, including me and alot of guys i work with. i have personally seen, first hand, the differance in quality of work between scab and union. ive had to go and FIX the things scabs have screwed up before. theyre not trained. they dont go through any kind of schooling or apprenticeship program. theyre not going to care if they lose their job, because anyone can get a $10/hr job. you think that goes the same for someone making UAW wages? he making money, benefits, retirement, plans for the future. he WILL do a good job because he doesnt want to lose the job he has.
Anyone who has a shred of pride and self respect will do a good job irregardless of their pay, if not, they don't deserve the job they have and should find work elsewhere. Is that idealistic, maybe? But fat paychecks are no guarantee to a job well done or to happiness. Do you agree that any given job has an upper limit as to what the job can and should pay? There are slackers in every walk of life, union and private sector, no doubt. I am sure that within your hall there are guys who are seen as top dogs because they bust ass and do good work and make it happen everyday. I am also sure that there are guys in your hall that don't quite live up to that standard and they suffer for it.
you want lower priced labor. you want mexicans from under the fence? some punk kind fresh out of highschool who just barely works to have money for getting drunk or stoned? one of the first things hitler and stalin did once in power was to dissolve unions. is that the kind of thinking youre coming from?
NOPE. That is not my line of thinking at all. Hitler? Stalin? That's far too slippery a slope to go near. What I am saying is that when a person or group (union or otherwise for that matter) reaches the upper pay limit for what the job can reasonably pay, they need to accept that fact and either be content or upgrade their SKILLSET so they can be more valuable to the company they work for and with that will come greater rewards. But for that same person or group to demand greater pay to point that it cripples the company's ability to be competative in the market place? That is wrong, that is counterproductive. That is what I believe the UAW has done to its own.
no matter what job you have now, there is NOTHING keeping your boss or employer from firing your ass and bringing in a mexican for $5/hr, give him a training video to watch, and send him off. i tell the same to my friend who works for seimens. no matter what training, degrees, experience he has, there is nothing guaranteeing his job from going to someone who will work for less. he has no say, no voice in the work force. the same goes for a guy i went to college with. hes now a surveyor. there are union and non union surveyors. he was recently liscened. so, he wanted more money, and threatened to quit if he didnt get it. his boss gave it to him.......you know why? because if he didnt, he could walk right out the door and join the surveyors union and make the same money with better conditions. if there was no surveyors union, looking in from the outside, his boss would have told him to go screw, and he'd find somone else willing to work for less money.
It's funny that you use this example. I am a land surveyor/cadd operator. Could my boss fire me, sure. Could he replace me and my SKILLSET for significantly less that what he is paying me now, NOPE. If he did terminate my employment, I'd have interviews within a week and be GAINFULLY employed within a month. Why? My SKILLSET, my work ethic, my ability. I show up and work my ass off everyday and get the job done, go the extra when necessary without being told. That's my job. And your buddy who just got his license could do the very same thing, either in the private sector or with the union. Why? His SKILLSET, and yes his boss knows this. Is it the union that gives your buddy this leverage? NO. That would be an insult to your friend. Its his SKILLSET that gives him the leverage. The union is one of the places he could go and be gainfully employed, but it is not the only game in town. There are plenty of firms in the private sector that would bid for his services. He is even better positioned than me because he has his license (I am still working towards mine). In a few years he will be able to name his price if he can't already. Not just anyone can show up and be land surveyor and ever fewer can show up and sign the plan. Just the same that anyone can't walk onto a job site and be a carpenter or a pipe fitter or a boilermaker.
Its the SKILLSET that set's all these people apart. I am a firm believer that if you have a strong SKILLSET and a strong work ethic, you will always be gainfully employed, union or otherwise. I think you would agree with that?
See you at the Meadowlands on the the 9th
Chris
shane27
02-17-2008, 08:38 AM
just another sad example of how greedy this country is and how the rich get richer and the middle class stays the same
Savage_Messiah
02-17-2008, 03:53 PM
just another sad example of how greedy this country is and how the rich get richer and the middle class stays the same
Unfortunately most of the middle class is so focsed on etting by that they never plan how to get ahead. It's really sad.
EchoMirage
02-18-2008, 08:14 AM
jesus ****ing christ theres no getting through to some people. not only are unions more skilled, but we are SAFER then scabs. we have conditions and safey issues that we are taught. once again, a scab outfit could order you to work around asbestos. if not....youre fired, and he'll find someone else that will. think that happens in unions? no.
you are completely ignorant to what it means to be in a union. you dont know what its like to be part of something thats bigger then the individual worker. you dont know what its like to have a brotherhood, to have support, backing, and a common voice, and you never will. i am ****ing DONE with this arguement and with you. there is nothing you will ever say that can change my mind or my views. fire back all you want, itll fall on deaf ears. this is the last time i open this thread.
BonzoHansen
02-18-2008, 09:24 AM
Does that mean all the workers in BMW's plant in SC are less safe then ones in one of GM's plants? I'd have to disagree on that. OSHA didn't exist 'back in the day', but they do now. As do insurance companies that underwrite workers comp and liability insurance. Back in the day the union acted as a lone force of change, but now there are other forces at work too. And like Chris pointed out, we are specifically talking about assembly line workers.
There is a similar thread at every car forum right now. And it is all the same…’how can GM do this', yadda yadda yaddda. GM has no choice but to do this, and if you think otherwise you are terribly naive. GM can't 'fight the good fight' if it means loosing tons of money. Everything I have read says all this should result in reversing the negative cash flow generated by the North American business. What is the alternative, stay the course? If they do they will inevitably file for bankruptcy and then dump all the retiree benefits on the US tax payer, who will in turn give those retirees $0.10 on the $1 for their pensions. Welcome to the PBGC – an almost bankrupt version of the FDIC for pensions.
How about this - instead of hammering GM, why not go hammer the non-UAW factories out there? Or get in your elected officials faces? How the hell is GM supposed to compete with Toyota & Honda if the playing field is so uneven? Our government sure has no interest in helping the big 2.5 (I’ve downgraded Chrysler in my head to less then 1). And if you say ‘make better cars’, ugh, go look at the numbers. Adding $1500+ per car in legacy costs per car (a number that grows daily) sure puts them in a big starting hole. It is no coincidence that the new GM cars are much nicer and R&D is really starting to shine now that they did a lot of cost restructuring. But they need more. The market is changing, the global market is bigger then the US market. GM is trying to position themselves worldwide. And as Al has pointed out, they are leaders in many other markets, such as China.
I’m not a GM sycophant, and the General does not need my defense, but I know what I see & read.
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