GM in trouble

[niky]

The Senate didn't kill the bailout out of hand. They just wanted the UAW to take a pay cut.

Now, you're bailing out a company. That company is in a heap of trouble... why? Because it's uncompetitive and not making money.

Why is it not making money?

1. People think the products are crap (50:50... some good products, but brand perception is terrible... this can be fixed with the introduction of the Globalized models Ford and GM have lined up).

2. People aren't buying the products. (no money, no credit, nothing we can do about that at the moment).

3. The cost-structure is incredibly BAD. UAW workers get $3-4 an hour more than their counterparts. That's a LOT of money on top of the other incentives...

Now the Senate ain't giving away money to a bad business... they want to make sure the business will survive to make use of that... so they want the workers to take a pay cut to bring their salaries down to the National standard.

---

So it's the Senate's fault? Nuh-uh... point the finger at the UAW. They've been screwing and sinking the big three for years. And now they've finally killed them. Good job, boys.

[uls]

kapal talaga ng mukha ng mga overpaid na union workers

babagsak na nga ang mga companies na pinapasukan nila,

ayaw pa nila tumulong sa pagtipid...

bawas sweldo lang ang hinihingi ng Republican senators

ayaw...

Know what?

the union workers just wish Obama would take over na

they wish sana January na

they know they would get more sympathy from democrats

[tidus1203]

^^I think ganun na nga plano ng UAW. They are stalling because they know Republicans won't agree to any bailout without a wage cut. But when Obama takes over the Democrats will be more powerful, and will also increase their seat in both the Congress and the Senate. Remember the union workers heavily supported Obama so Obama in a sense is obligated to bail them out under the same high cost labor. Hehehehe Peter Schiff might be right. The economy will stink so bad on Obama's watch that he won't even have a 2nd term

[uls]

ang taas pa naman ng expectations ng buong mundo kay Obama

[emanzano]

They just wanted the UAW to take a pay cut....


... point the finger at the UAW. They've been screwing and sinking the big three for years. And now they've finally killed them. Good job, boys.

If i were the UAW, i would take the paycut, provided that the executives take the same percentage paycut.

Now if i were the US Senate, I'll throw in lots of add'l conditions too... stockholders get no dividends for the next X years, moratorium on pricipal and interest payments for X years, no salary increases for X years, etc. Now, is the UAW and other stakeholders agreed to those conditions, i might consider ("consider" being the key term) giving them some bailout money.

Much much easier said than done.

We live in exciting times...

[AG4]

1. People think the products are crap (50:50... some good products, but brand perception is terrible... this can be fixed with the introduction of the Globalized models Ford and GM have lined up).(

Thats what Ford CEO Alan Mullally has been pushing for.
He has been with Ford for only 2 years and what surprised him when he stepped in as Ford's CEO was the number of regional/North American only models which he said was not efficient.
In September 2007 at Frankfurt, Ford announced that the Verve Concept (the all-new Fiesta) was going to be a true global model. The 2009 Fiesta will reach the US in early 2010.
By 2013 small and medium Ford models will be global.

Ford's biggest problem now is the auto parts suppliers for their current US models. If GM and Chrysler go down, they will most likely take the parts suppliers down with them.
70% of GM's parts suppliers also supply to Ford (according to CSM Worldwide Inc).
58% of GM's parts supplier and 65% of Ford's parts supplier also supply to Asian manufacturers.


GM bigest problem? Too many brands, in the US GM has 7 brands!
Non-US brands in the GM family, Saab, Opel/Vauxhall, Holden and Daewoo(GMDAT).

GM has some good models they're just spread out under different brands.
One of the few new models that migh save them is the compact Chevy Cruze.
The electric Chevy Volt is probably too expensive, so I doubt they could sell any of those if GM lasts long enough to build it.

Chrysler? After the cool 300C, it looks like they lost the motivation to make anything interesting. I hope someone buys Jeep, its probably the only Chrysler brand worth saving. Plan? I don't think they have a real plan at all.

[AG4]

If i were the UAW, i would take the paycut, provided that the executives take the same percentage paycut.

I guess those UAW guys think that losing their jobs is better than having a paycut.

[uls]

nag usap na sila

Wagoner Said to Confer With Paulson, Bolten on Rescue
http://www.bloomberg.com/apps/news?p...d=aJ5ckc2seT.g

Dec. 12 (Bloomberg) -- General Motors Corp. Chief Executive Officer Rick Wagoner spoke today with White House Chief of Staff Joshua Bolten and Treasury Secretary Henry Paulson about a short-term rescue plan to keep the automaker solvent, a person familiar with the talks said.

GM Moves Closer to Bailout as Wagoner Holds Talks With Bolten
http://www.bloomberg.com/apps/news?p...7UU&refer=home

GM Chief Executive Officer Rick Wagoner spoke by telephone with White House Chief of Staff Joshua Bolten and Treasury Secretary Henry Paulson about a short-term plan to keep the automaker solvent, a person familiar with the talks said.

[tidus1203]

Dope. Mukhang tuloy nga yung bailout na butata lang tayo for a day or two. Kinda like how the financial bailout first failed but with so many political pressure pumasa pa rin in th end... I wouldn't be surprised if another non-financial industry comes running for some TARP money. Perhaps retailers if spending really sag. And they will use the same excuse of job losses... And definitely the automakers are coming back for more. $15B is just too small...

[uls]

yep... other industries will also ask the Treasury to bail them out

If they allowed automakers access to the TARP funds, why shouldnt other businesses have access too?

BAILOUT NATION