GM Canada HQ blocked by protesters for Oshawa decision to close the plant

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Originally Posted by KrisZ
Another proof that global economy is a one way street and should be limited to trade with countries that have similar values placed for worker safety/well being, benefits, retirement etc. as well as environmental protection and many other things we take for granted in developed nations.
Yes, Global trade is great in theory but it's broken because we allow countries like China, Mexico and the like to abuse it and break what should be a balanced trade loop and well stuff like this happens. The more layoffs that come, it just add's to the problem because it takes more folks out of being able to participate fully in the economy with proper wages in comparison to true living costs and purchasing power to buy these products so these folks seek out cheaper pricing or stop purchasing because they have no choice, which then in turn puts more pressure on said companies to cut costs further which then makes this cyclical problem worse because they still have to pay out to the stock holders. The companies greed has only shot themselves in the foot for the long term, but they don't care because they payout to stock holders in the short term and senior management gets their bonuses in the short term and kick the can down the road for the next guy. What's going to happen when no one with income higher than the slave labour countries they are producing parts/vehicles in can no longer afford to buy their products? Who are they going to replace those folks with then? Oh I know Robots. Ok but if the guy isn't working to buy your robot produced product then what? Who cares that's the next CEO's / Stockholders problem. I got my bonus and can eat for today. That's the attitude. It's a flawed system and we are finally seeing the results of this adding up over the decades and it will eventually get really ugly if we don't fix it. How this isn't a national security problem already is beyond me, the world economy in the developed nations is heavily indebted and it's all dependent on the above house of cards logic of running companies. shrug
 
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Originally Posted by nthach
Originally Posted by jeepman3071
Government Motors should've been allowed to fail. That's how capitalism works.
But then again, we're giving Toyota/Honda/Hyundai tax breaks to build new plants and expand, also another handout.
Not exactly, more of an apples vs oranges situation you've described. GM and Chrysler were bailed out with Federal money. Any incentives given to Toyota/Honda and Hyundai for example are state funds. Well other than the special federal tax breaks for Hybrid and Electric vehicles. But those are not to any specific company, but a class of products. If you are unhappy about YOUR state giving incentives to lure plants, and I suspect they would offer them to the domestic car makers as well, take it up with your state and possibly local government.
 
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Corporate welfare. I wonder how Ford manages to stay so squeeky clean and self-sufficient...... what with many believing they haven't gotten any state assistance to carry on hemorrhaging money... Jerry should be ashamed for misleading these people by playing on their immediate fears and insecurities, because he himself knew his days were numbered. He has them occupying their time crying and stomping their feet like children, instead of pursuing a new job or career. It's such bad news for the bottom row when they fall prey to this kind of 'spineless weasel' approach to a hard dealt hand. Corporate welfare can only go so far before the hard reality of overhead operating costs comes back with a vengeance. Jerry needs to grow up and accept that production and pay can't keep ratcheting up, when other people will do the whole deal with more gratitude for less pay, as the business side sees it.
 
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Ford is not in the best of shape either. All three automakers have credit ratings worse than oatmeal mush. There is going to be more consolidation coming.
 
Originally Posted by PimTac
Ford is not in the best of shape either. All three automakers have credit ratings worse than oatmeal mush. There is going to be more consolidation coming.
And my company sells to these 3 and I can tell you they aren't paying to suppliers for at least a year after receiving their parts in these cases, whereas the other brands are paying in 90-120 days. It has left some of our customers strapped financially and some have gone under as a result.
 
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Originally Posted by javacontour
GM and Chrysler were bailed out with Federal money.
The bailouts were considered loans. Chrysler repaid it's loan, and the Obama Administration forgave 10.2 billion of GM's loan, making it paid-in-full as far as the Government was concerned. Ford got Billions in Federal taxpayer funded loans too, they were just under different programs. So far, I believe they haven't paid back those loans.
 
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How much money (loans, debt fogrgiveness, etc.) did Canadian taxpayers give to GM as part of their bail out?
 
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The whole thing stunk because bondholders were not paid in the typical order during a bankruptcy. So that's a whole different form of bailout. An interesting Forbes story about the GM bankruptcy - restructuring - NewCo. https://www.forbes.com/sites/danbig...-bankruptcy-in-u-s-history/#651b4bc77eea Not sure how much restructuring was actually done, but this is one take on how it came about in the US.
Originally Posted by 02SE
Originally Posted by javacontour
GM and Chrysler were bailed out with Federal money.
The bailouts were considered loans. Chrysler repaid it's loan, and the Obama Administration forgave 10.2 billion of GM's loan, making it paid-in-full as far as the Government was concerned. Ford got Billions in Federal taxpayer funded loans too, they were just under different programs. So far, I believe they haven't paid back those loans.
 
Originally Posted by Patman
I felt bad for these people until I heard the sweet deal that about half of them get. Half of those workers can retire and get $3500 a month, a $50,000 lump sum payment and $20,000 towards a brand new car. Even if they don't want to retire, they could get a minimum wage job to supplement that income and still live a very comfortable life. And I believe the other half of the people that aren't quite at retirement time yet, will still get a good severance package, plus they've been offered jobs as service advisors or mechanics at GM dealers. So it's not like these people are being tossed out on the street with no safety net, it doesn't seem like too many of them would be in a position to lose their homes for instance (especially if their spouses have a good job)
You won't see this reported on the news. It was a bunch of old dudes waiting to get paid to not work, after they made a career of getting paid to not work hard. It has nothing to do with the employees, the Canadian media is angry because it makes UNIFOR look bad. Private sector unions have been losing ground for years, and this is a publicity disaster for them.
 
GM's board has long paid first string compensation for second and third string senior management. That GM can't continue to build product at its Canadian and Ohio plants reflects this. Bad management brings inadequate products at high build costs, simple as that. The failure to maintain a viable market presence is always a management issue. Good thing GM level management isn't running Honda or Toyota, both of which shovel out hundreds of thousands of sedans in North America at a profit.
 
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