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GM: Its rise, fall and future (Founder was strongly anti-union)
The London Telegraph ^ | June 1, 2009 | James Quinn

Posted on 06/01/2009 3:22:27 AM PDT by 2ndDivisionVet

When United Auto Workers (UAW) union chief Ron Gettelfinger announced the end of GM's two-day strike in the early hours of September 26, 2007, it was the beginning of the end for the world's largest car manufacturer.

The agreement to end the first US nationwide automotive strike in 31 years, which saw General Motors' then 73,000-strong US workforce walk out, was the final death knell in the company's 101-year history.

The strike had occurred not over the future of those employees however, but rather of the fate of GM's 460,000 retired workers whose continuing eligibility for healthcare benefits had placed a $50bn (£30bn) noose around GM's neck.

The deal to end the strike saw GM management swap those liabilities in favour of the creation of an off-balance sheet healthcare trust, worth $20bn.

Although the agreement ended the short-lived strike, it placed an additional one-off burden on GM's already ailing balance sheet, forcing the company into a situation from which it could never recover.

The events of the 20 months that have followed – culminating in today's Chapter 11 bankruptcy filing – have all stemmed from that decision, a decision which was necessary because of years of died-in-the-wool union practices in a domestic industry being fast usurped by overseas competitors.

If GM's founder, Billy Durant, had lived to see this day, he would not have been a happy man. Durant, who originally made his fortune making horse-drawn vehicles in the late 1800s, formed General Motors in 1908 having been appointed as general manager of Buick in 1904.

In quick succession he merged the now defunct Oldsmobile, Pontiac and Cadillac marques into the GM family, and started the company with a fervent belief – no unions.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; US: Michigan
KEYWORDS: automakers; bailout; bankruptcy; bho44; generalmotors; gm; junk; kremlin; obama; ourtaxes; second100days; socialism; uaw; volkswagen; welfare
It's a sad day for the USA.
1 posted on 06/01/2009 3:22:27 AM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

It really is government motors.
Obama apparently is going to make the announcement about GM’s bankruptcy today. Not the CEO, not the chairman of the board but Obama himself.


2 posted on 06/01/2009 3:28:09 AM PDT by Maine Mariner
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To: 2ndDivisionVet

GM was dead long ago. The thing now is whether they can focus on building cars people want to buy and my bet is that they won’t and Obama Motors will fail like Obama will fail as president.


3 posted on 06/01/2009 3:38:45 AM PDT by MAD-AS-HELL (Hope and Change. Rhetoric embraced by the Insane - Obama, The Chump in Charge)
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To: Maine Mariner

Since we now own an auto company will it be considered “patriotic” to boycott all the other non-government owned companies?


4 posted on 06/01/2009 3:49:05 AM PDT by kempster
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To: kempster

I think it would be patriotic not to boycott the non-government companies. GM will be a drain on the taxpayers for years to come. The only way GM survives is if the Obama administration passes laws that require us to buy its cars.
That is a possibility.

Watch for new attempts by the UAW to unionize the Japanese plants in the US.


5 posted on 06/01/2009 3:53:04 AM PDT by Maine Mariner
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To: Maine Mariner

Well he is a dictator now for sure ,Congress just sits by with their head up their asses,I can imagine if George Bush was saying today he is going to be in Charge of GM ,the first question would not be How Long the Government would be running the show there ,the question would be where the Hell does King George think he has the Authority in the Constitution to do such a thing with Tax Payer Money?


6 posted on 06/01/2009 3:53:55 AM PDT by ballplayer
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To: Maine Mariner
Watch for new attempts by the UAW to unionize the Japanese plants in the US.

Watch those Japanese plants close and move back to Japan.

7 posted on 06/01/2009 3:54:55 AM PDT by CharacterCounts (November 4, 2008 - the day America drank the Kool-Aid)
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To: 2ndDivisionVet
"A year after it closed 11 plants across America in 1986, the union forced the company into a contract which stopped GM from closing a plant unless its sales – rather than its profits – fell."

Wow, I hadn't heard about this. The article also contains the best description I've seen of the 2007 looting of GM by the UAW. It's a sad day in American not only because of Obama and the UAW's syndicalism, but also because of our utterly failed press.

8 posted on 06/01/2009 3:57:08 AM PDT by Red Dog #1
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To: 2ndDivisionVet
I really have no sympathy for GM’s management. They chose to give away the store to the unions. Had the company bitten the bullet and fought off the union tooth and nail, the same way Toyota, Honda and other profitable companies do every day, it would not be in the position in which it currently finds itself.
9 posted on 06/01/2009 4:02:03 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: kempster

No. The federal tyrants will simply put a punitive tax on any auto that is not owned by them.

Look for pop culture to start talking about the only true car “born in America” and condemning the greed of all those other private companies.

Maybe Tina Fey, the idiot actress with no talent, can do some spot ads for the new GM.


10 posted on 06/01/2009 4:02:53 AM PDT by Ghost of Philip Marlowe (The most dangerous fascists are those with a warm smile and soothing voice.)
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To: 2ndDivisionVet
Here's the Big picture. Expect to see bankruptcies to GM suppliers as they will not get paid on outstanding balances. This will add additional pressure to the economy which will by painful.
11 posted on 06/01/2009 4:04:26 AM PDT by G3
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To: Red Dog #1

The leftist MSM should be celebrating the victory in their war against American wealth. Sadly, envy is the only one of the 7 deadly sins that is no fun at all.


12 posted on 06/01/2009 4:08:38 AM PDT by Reeses (Leftism is powered by the evil force of envy.)
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To: pnh102

GM Management points to the Engineers, and says they will not design cars people want to buy....

The Engineers point to the Union, and say they refuse to work hard enough to build the cars they design....

The Union points to Management, and says they get paid too much, while the Union gets paid too little....

Management points to the Engineers.........


13 posted on 06/01/2009 4:10:30 AM PDT by joe fonebone (When you ask God for help, sometimes he sends the Marines.)
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To: G3

Paid for outstanding balances? According to bankruptcy laws, they can go back 90 days and seize payments made to suppliers.....


14 posted on 06/01/2009 4:11:33 AM PDT by joe fonebone (When you ask God for help, sometimes he sends the Marines.)
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To: joe fonebone
It is very simple.

GM's management decided to continue selling cars which consumed a lot of fuel even as gas prices continued to climb. While I don't think they should dump large vehicles because clearly people do use them, they should not have made those the foundation for profit for the entire economy. When gas goes back to $4 a gallon or more, any company that makes most of its money selling vehicles like these will take a hit once again. They could have also tried to find a way to make larger vehicles use less gas.

Then there's the quality issues. The UAW simply refuses to build quality vehicles. They've been doing this for decades. Many customers simply said "screw you" and bought foreign makes instead.

If what happened in my family is any example, the GM just needs someone to nail the coffin shut. My entire family was all GM until I got tired of being on a first name basis with my mechanic and bought my first Honda. When my mom tells me that she is happy she found a mechanic close by who can fix her GM vehicle, I tell her... you see the problem with that?

15 posted on 06/01/2009 4:18:33 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: CharacterCounts

You are absolutely correct!


16 posted on 06/01/2009 4:18:55 AM PDT by Maine Mariner
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To: joe fonebone

Sounds good but with what they are doing to the bond holders, what is stopping them from screwing the suppliers? Maybe they will pay them 10 cents on the dollar.


17 posted on 06/01/2009 4:19:15 AM PDT by G3
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To: kempster

I wonder if the thug-in-chief will figure out a way to intimidate consumers into buying a Government Motors product instead of a Ford?


18 posted on 06/01/2009 4:20:20 AM PDT by thethirddegree
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To: Reeses
In deed, Antonio Gramsci would be exceedingly proud of journalist's “long march through the institutions”. The subversives in our MSM haven't failed, but the institution has.
19 posted on 06/01/2009 4:34:04 AM PDT by Red Dog #1
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To: kempster

Do ya think all the Liberal types will suddenly stop buying their Japanese cars just to be “patriotic”? Fat chance.


20 posted on 06/01/2009 4:34:43 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: pnh102

The UAW simply refuses to build quality vehicles.


I lay a lot of blame at the feet of the UAW. They basically killed the golden goose. However, ultimately, they build the designs given to them by GM management. And, quite frankly, those designs have been less appealing than foreign ones for some time. Yes, there are some exceptions, but this has been true on average. I’m sure part of the reason here is that UAW labor & legacy costs have staved GM R&D out of funding.

Also, SUVs and trucks are what sustained the American auto industry for a long time (since the early 90s). Why? Because the Big Three lose $$ on nearly every car they sell. Again, that is thanks to UAW labor costs.


21 posted on 06/01/2009 4:39:32 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: kempster
Since we now own an auto company will it be considered “patriotic” to boycott all the other non-government owned companies?

Yes, because it is not the American Government any more. We cannot reward bad behavior, nor collaborate with a conqueror.

22 posted on 06/01/2009 4:47:20 AM PDT by Gorzaloon (Roark, Architect.)
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To: rbg81

About $20 billion in our tax money has already been wasted on GM. At least $50 billion more will be given to GM to waste this year. This is a welfare program for the UAW, allowing the Socialist Obama and his Socialists in Congress to buy votes, using our tax money (and the ballooning national debt). GM has made junk for decades, and will have even less incentive to make decent products now that it has unlimited federal money to waste. There is no need for them to compete or worry about profits, so GM will be even more inclined to ignore consumer demands.

Who is his right mind would buy a GM car or truck?


23 posted on 06/01/2009 4:49:58 AM PDT by pleikumud
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To: Gorzaloon
Since we now own an auto company will it be considered “patriotic” to boycott all the other non-government owned companies?

Yes, because it is not the American Government any more. We cannot reward bad behavior, nor collaborate with a conqueror.

Sorry..I need coffee. Jumped over some of that and somehow though you said "Boycott the government owned company".

I'll shut up till I wake up. I'm just too disgusted to think clearly.

24 posted on 06/01/2009 4:53:19 AM PDT by Gorzaloon (Roark, Architect.)
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To: pnh102
It really isn't management's fault at all.

GM's operating arrangements and business structure developed over the course of several decades because it was put in place by a three-part group that all benefitted in one way or another: the UAW got lucrative contracts, management got well-paid positions with little responsibility to deliver profits, and elected officials got the votes of all parties in exchange for government contracts to produce fleets of mediocre civilian vehicles and more military vehicles than the Pentagon could even use.

General Motors has been a government-run industry for years. Today's bankruptcy and pending reorganization just make it official.

25 posted on 06/01/2009 5:05:34 AM PDT by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: 2ndDivisionVet

UAW mission accomplished!


26 posted on 06/01/2009 5:40:58 AM PDT by RoadTest (For there is one God, and one mediator between God and men, the man Christ Jesus - I Tim 2:5)
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To: Gorzaloon

“it is not the American Government any more. “

You must have read the Pravda article the other day.


27 posted on 06/01/2009 5:43:03 AM PDT by RoadTest (For there is one God, and one mediator between God and men, the man Christ Jesus - I Tim 2:5)
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To: Maine Mariner

“it is not the American Government any more. “

Yes! Because the NWO, which is running the show, wants us in streetcars that don’t existt.


28 posted on 06/01/2009 5:45:18 AM PDT by RoadTest (For there is one God, and one mediator between God and men, the man Christ Jesus - I Tim 2:5)
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To: 2ndDivisionVet

The union thugs have taken their hand out of GM’s pocket and put it in ours!


29 posted on 06/01/2009 5:46:14 AM PDT by ontap (Just another backstabbing conservative)
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To: RoadTest
You must have read the Pravda article the other day.

I tried not to, but it was like driving by a bad accident. You don't want to look but you have to.

30 posted on 06/01/2009 5:52:22 AM PDT by Gorzaloon (Roark, Architect.)
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To: RoadTest

NWO?


31 posted on 06/01/2009 6:12:29 AM PDT by Maine Mariner
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To: 2ndDivisionVet

Get ready for the “Mother of all Incentives” to buy Government Motors cars. You will pay for GM cars whether you buy one or not.


32 posted on 06/01/2009 6:13:51 AM PDT by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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To: Maine Mariner

New World Order


33 posted on 06/01/2009 6:56:24 AM PDT by RoadTest (For there is one God, and one mediator between God and men, the man Christ Jesus - I Tim 2:5)
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To: 2ndDivisionVet
Rush mentioned that GM has lost 4/5ths of its workforce since 1979....I believe. When do you say... It's Over?
34 posted on 06/01/2009 9:09:42 PM PDT by fight_truth_decay
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