GM considering Chapter 11 filing, new company

[wapacz]

What the government needs to do is step in and basically keep them going. While forcing the changes that need to take place.Heck put the bankruptcy judge that did delphi at the head of it.

Basically what I am saying is a bankruptcy with no chance of failure during the bankruptcy period. Also without the stigma attached to the name bankruptcy.


Also the uaw need to take close to the same cuts that salaried worker are having to take. aka A 3 to 7% reduction in pay and something about long term health care. The salaried people had to give up health insurance when they are 65.

 

[StevieC]

Originally Posted By: OVERK1LL
Originally Posted By: Bamaro
Removed from the torturous UAW contracts and the horrendous legacy costs, Detroit can and will build cars equal to or better than the foreign competition. They simply cant afford to do it now.


Ummm, Ford has been doing it for a number of years now.....


Ford didn't have their head up their A-SS like the other two and seen this coming and restructured a bit earlier. I have always found Ford to be a bit smarter than the other two... Now if they could just make cars I could fit in!

 

[double vanos]

The UAW is always the ones to blame for GM's demise.

I don't dispute that at all.

But GM began it's trip to insignificance back when Roger Smith took the helm, followed later by Ron Zarella - both non-car guys.

Back in the 60's GM could do no wrong - they built nicely styled cars that sold for top $$ (in many cases), and the UAW was just as much of a drain to GM then as they are now.

The difference is that GM had desireable cars that people felt compelled to buy (think '70 Chevelle).
That's not the case today.

GM's management is just as guilty as the UAW concerning it's demise. MHO

 

[artificialist]

Sure, finally getting rid of backbreaking costs is great, but if GM can't erase the stains of bad cars, how much further can they go?

The thought of that zinc ignition lock housing in my Saturn keep making me hate GM passionately, and I am not alone.

They have some great trucks, though.

 

[Steve S]

They then can focus all their energy in their new Brazil plant. The biggest backbreaking cost is the upper management.

 

[Rabbler]

I think it's more the legacy costs dragging them down.
Pensions, medical and $40 an hour for unskilled labor...
Wasn't capping CEO salaries part of the bailout agreement.

 

[StevieC]

Speaking of capping salaries... What bugs me is the business world were complaining that it wasn't fair that these guys salaries were capped because it may deter them from staying or doing a good job because they worked hard to get to where they are today and should be reward as such. The public/news agencies were arguing that the bonuses were not capped and would be based on company performance and turn-around and could far exceed the base salary... *** is with these people?

I'm a CEO and therefor entitled to make big money regardless if I run a company into the ground? WHAT THE HECK IS THIS?

I wish there was an emoticon for steam coming out of my ears!!!!

 

[Kestas]

Originally Posted By: StevieC
... it wasn't fair that these guys salaries were capped because... it may deter them from staying...
Empty words and scare tactics. Go ahead and cap their salaries.
Where would they go? Who's gonna pay them the megabucks?
I too work hard. So does everyone else here.

 

[StevieC]

Originally Posted By: Kestas
Originally Posted By: StevieC
... it wasn't fair that these guys salaries were capped because... it may deter them from staying...
Empty words and scare tactics. Go ahead and cap their salaries.
Where would they go? Who's gonna pay them the megabucks?
I too work hard. So does everyone else here.


You know that I agree with you right? I'm not for Big Salaried CEO's... Just want to make sure...

 

[Win]

The GM plan is up at:

http://media.gm.com

It is over 100 pages so I have only skimmed it. I thought one of the interesting assumptions is a gradual increase in fuel prices to $4.00/gallon by 2014. See, plan at 58.

 

[HM12460]

imo, gas will very close to that by this summer.

 

[RGrant]

Originally Posted By: HM12460
imo, gas will very close to that by this summer.


I don't see it. Global demand plumeted, and will continue to be lower than average for the next year or two. We will see the typical summer surge, but nothing like last summer.

FWIW, bankruptcy is a pretty viable option for GM considering it gives them protection from lenders and allows them to restructure all contrats with the UAW.

 

[firemachine69]

I vote the salaries of mega-corps only be paid in shares.


Plus five bucks for lunch.