Posted on 10/10/2005 7:25:09 AM PDT by devane617
CNBC stated that Bank of America swithed their position on GM to "SELL". It is being mentioned that GM will follow Delphi into Chapter 11. Although GM has 38 Billion in cash and assets, it may not be enough to cover what is certain to be a huge drop in sales during the next few months. If GM files, that will be extremly bad for our economy.
"Not that I'm saying that this guy is worth it, or isn't a crook. Get a grip, you're just jealous."
Maybe I'm mistaken about you being bright.
How can you possibly know if I'm jealous or not?
I just know if I had stock in GM, or HP or any other PUBLIC corporation taken down the tubes by an overpaid CEO, I'd be more than a little angry.
And my point is, I don't care if he or she is overpaid, underpaid, or paid just right. If they suck, they suck. The fact that you harp on the "overpaid" part shows your true colors.
That's how I know that you're jealous... and I'm very bright, by the way.
money honey is an airhead...
Bob Brinker said to sell GM bonds also over the weekend. They are certainly in a pickle. I just faxed in two outstanding invoices that their auditors were asking about....once from 2001.
I agree that senior management at GM is a mediocre lot, but that is all the more reason for the rank-and-file workers to display leadership in this situation. The rank-and-file has the most to lose, and if they are unwilling to agree to changes, they will see their jobs vanish.
GM is going to manufacture cars, but whether the firm does so in the US or not is another matter.
The best course of action for the UAW is to do all in its power to ensure that the company produces quality cars the public wants to buy and at reasonable prices. But if the UAW continues to believe that it can cling to an outmoded labor system, then there will be few if any cars assembled by UAW members.
Standard & Poor's on Monday cut its ratings on General Motors deeper into junk status and said it may cut them again, citing the bankruptcy filing of GM's largest supplier, Delphi Corp.
The downgrade could further hamper GM's access to funding, which was already hurt when S&P first downgraded the world's largest automaker to junk status in May.
Delphi's bankruptcy could impede GM's efforts to turn around its ailing North American vehicle operations, S&P said in a statement.
GM will likely face demands from Delphi for price relief and is also exposed to the risk of supply disruptions caused by labor strife at Delphi as the parts supplier downsizes its work force, S&P said.
GM's troubles have worsened in recent weeks after two major hurricanes drove U.S. gasoline prices over $3 a gallon, curbing demand for the automaker's profitable SUVs. GM posted a 24-percent drop in vehicle sales in September with sales of SUVs and trucks off 30 percent.
GM's bonds with an 8.375 percent coupon due in 2033 fell to 76 cents on the dollar from 77.5 cents on Friday, according to MarketAxess.
Ratings of GM's finance arm, General Motors Acceptance Corp., and its mortgage unit Residential Capital Corp. were not changed but are on review with "developing" implications, meaning they may be upgraded or lowered.
The potential for an upgrade reflects the chance that GM may separate these units from their parent by changing their ownership, S&P said.
"Such an outcome now seems more likely to occur, given the increased challenges that GM is facing," S&P said.
S&P cut GM's long-term rating by one notch to "BB-minus" from "BB." The rating remains on review for another downgrade. GM and its financial unit had $284 billion of consolidated debt at the end of June.
Yet again, the UAW is caught red-handed driving thousands of American blue-collar jobs overseas.
Agreed. Where does the UAW get off making such ridiculous demands that tens of thousands of American jobs are lost overseas? You are right that the UAW is as un-American as any group can get.
Delphi is required to pay GM wages of $27 an hour to most of its 24,000 UAW-represented workers -- double the level of competing suppliers, according to Standard & Poor's Ratings Services. Delphi also had to pay full wages and benefits to 4,000 laid-off workers in jobs banks, which cost it $400 million each year.
In a letter sent from the UAW to its members last week, the leadership claimed that Delphi had asked the UAW to accept wage cuts of more than 50 percent, to $10 - $12 an hour, and that it would need to eliminate the jobs banks. In order to stay solvent, the company would also need some concessions on health benefits and accrued vacation.
"Agreed. Where does the UAW get off making such ridiculous demands that tens of thousands of American jobs are lost overseas? You are right that the UAW is as un-American as any group can get."
It's kind of funny. I'm not defending the unions, I'm just saying the focus is off. In fact the union has their share in all this. But the knee jerk here is to instantly bash the union to the exclusion of all else. Forget management's part, the unions made this all happen. (Horsepucky).
And that is how GM got into the mess they're in, a mess they won't get out of.
One poster pointed out GM will still produce cars somewhere, even after bankruptcy. His point was the union would be screwed, and that's enough for him.
Now if I'm a GM stockholder, I don't see it the same way.
Another poster had no sympathy for people who don't work at least 60+ hours a week, forgo vacations, and generally live to work.
I shake my head at the misplaced priorites.
And a CIO, CFO, CTO, other officers and the like who got a bonus even though their decision hurt the company... But yea sure its all the workers fault..
GM chairman said they need to shed about 25000 more workers by 2008 but for what? They won't save any money! The only hope is to renegotiate this boondoggle with the UAW in 2007, and that ought to be a comedy of errors.
.But then you probably already knew all this, didn't you.
My husband was in the job bank 15 yrs ago. He did volunteer work and collected his full pay. I admit it's poor business. The union wanted to protect the worker and keep the employment figure at the top.
When my husband hurt his knee for the final time, they put him on a medical work program. Then harrassed him every single day.
A young foreman straight from the Marine Corp made him stay in a small room and told him since he couldn't do any of the jobs, he was to stay there all night (3rd shift) and not leave the room except for potty breaks. He couldn't read or do anything but sit. After 1 night of this, the REAL foreman told him it was a tremendous loss of work production.He could have sat down and done many jobs. After that, the medical dept told him it was time to go. He was more of a liability at that point.
He was in the Marines during the Viet Nam war. What a way to treat someone. He says he was just a cog in a wheel that didn't work anymore.
The stock price of Alcoa has been tracking that of GM recently. Both seem to be suffering from lack of vision, a bad thing when aluminum is in demand and so are cars.
Don't worry. There are plenty of people available to fill the coaching positions. There are damn few available to pull the load where I'm working. The few that qualify are working the same long hours until we meet the objective.
I agree that the future prospects of GM are dim, but are not hopeless, if the unions (and management) realize that the system must change.
RHINO Governor John Engler never did a thing to change Michigan's closed shop law. He never even had a bill introduced in the Republican controlled state legislature.
Ford can't be taken over in a hostile manner. The Ford family controls 40% of the voting stock no matter how many shares are outstanding.
Yes, you are correct. The unions see Fat cats CEO's and upper management voting themselves fat pay raises (more than all Union Worker's salaries combined) while running the corporation into the ground; yet they must have the union worker must accept benefit, salary cuts year in and year out. My husband works for GM (management), but he sees the unfairness of the situation and believes the Union is fighting to retain anything.
There are guys on lay off now who will not be called back that have exhausted all benefits. This is no longer true. Also, GM is firing people for very minor offences. GM is not the same company. The layoff rules were put in place to keep experienced workers during cyclical downturns which happened every few years in the car business. GM wanted to be able to call such worker back when needed. Believe it or not this saved money because training is very expensive. The car industry need skilled workers; There is a learning curve of at lease a year (basic) and several years (true experience). Globalization which eliminated many American jobs has disrupted the balance.
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