GM Bankruptcy Fears Rising on Wall Street

ap ^ | 11.15.05 | ALEKSANDRS ROZENS, AP Business Writer

[REP200]

Thanks to the red unions, an Icon of our great country
is now going under.

Damn, I thought we won the Cold War already.

[cowtowney]

True. Check out the story about Apex Corp. in Forbes. Not pretty.

[BlueNgold]

How do they do it?
They buy Japanese steel on the Japanese market...
They limit unionization wherever possible...
Their non-US wage scale is atrocious...
Their US manufacturing concerns are largely centered in the lower Mid-West and the South where labor, property, and misc materials and expenses costs are lower...
Their automation is standardized plant to plant throughout the world, something US makers cannot claim...

There are a LOT of reasons.

For what it's worth:
I am good friends with several GM employees in the Detroit area and they all speak glowingly of the company.

[libs_kma]

Another socialist experiment crapped out. Who'da thunk it.

[MineralMan]

And to think that their troubles all started here:

[A CA Guy]

I really think the people can't afford to bail all the pensions out. At some point this needs to become an issue for the voters nationally.

These people on pensions often already get SS, and I see no reason for the public to take over fully funding their pensions.

Just let their pensions pay out at a % of what is there. Heck if we don't fix SS, that is what happens there, we get maybe 80% of what was promised, so why not do that with these pensions now?

[tumblindice]

Way back in the early `90s, when he was still working toward his black-belt in babyboomer, sharper-than-a-serpent's-tooth ingratitude, man-blimp Michael Moore tried that "General Motors sucks" schtick . . . .
The problem with the footage that wound up on the cutting room floor was that active and retired Flint, MI workers--like his own father, AC Delco--kept referring to GM by its nickname: "Generous Motors".

[kenavi]

So if part of the private sector crashes, instead of allowing it to fail they instead get to act like an anchor to take us all down with them?

I believe that the Pension Benefit Guaranty Corporation funds itself from premiums paid by pensions that it guarantees, in same way as FDIC insurance fund.

Risk is that premiums paid by members isn't sufficient to pay claims of failed pensions. Then Uncle Sam will call on government (i.e. us taxpayers) to make good.

Seems like gov't should get out of this business.

[Thorin]

I agree that GM has been putting price pressure on its suppliers for years, and that is indeed unfortunate. But what frustrates me is dimbulb "consumers" who have no idea of how much our economy still depends on large manufactuers like GM, and have a conception of car quality that is 30 years out of date. The most recent JD Power survey of initial quality I saw (last July) had GM or Ford with the leading position in most automobile categories. I certainly haven't had any problems with my '99 Grand Prix with 108,000 miles on it, though reading some of the posters I've seen here, it should have fallen apart long ago.

[Thorin]

>>>>>>The problem with the footage that wound up on the cutting room floor was that active and retired Flint, MI workers--like his own father, AC Delco--kept referring to GM by its nickname: "Generous Motors".

You are exactly right. And I knew Moore was a phony when I read that, at the time he made "Roger and Me," Moore was voting with his pocketbook to create more unemployed workers in Flint--he was driving a Honda. I wonder what he drives now--probably a Lexus, BMW, or Mercedes.

Interestingly, the people who seemed to like "Roger and Me" best were all phony limousine liberals like Moore, the types who drive BMWs and vote for Kerry.

[muleskinner]

The Corvette and GTO, good though they may be, are two specialized cars targeted to a very small segment of the public. GM doesn't have an Accord or Camrey - well built, decent looking car that does everything well. Even Ford has that new Fusion. So what if it looks like a Passat, it will probably be the salvation of Ford. I'd seriously consider one if I was in the Acord/Camrey market.

Pontiac GTO? Come on. Way too much drama for getting groceries.

[ElRushbo]

Common sense says there is no possible way GM can stay in business. Recently, the GM bonds dated 2012 are trading around 70. Think about that-- bonds/notes are saying there is basically a 70% chance the company will be in business in 2012.

[em2vn]

It took a dumbass to produce such a dumbass post.The hourly workers arent't the ones producing the concepts for the vehicles that no one wants to purchase. That falls squarely on the shoulders of the bean counters who now seek to squeeze every penny out of each vehicle no matter how it effects the performance or appearance of the vehicle.
Thank you General Motors management for ruining such a wonderful company.

[muleskinner]

I thought there might be hope for GM, until I saw the Aztek.

[michaelbfree]

oh, are you some sucker that bought GM? Or are you one of those overpaid Union guys that think the company is like the government, should take care of you from cradle to grave?
The bottom line is it costs GM over $1000 per vehicle just to pay health insurance on the union scum bags that bankrupted this company........dumbass.....oh, and a big FY to you also.

[Vinnie]

who says they make terrible cars ?!?!

I did my duty and went out and bought a 2001 Olds Intrigue on 9/29/2001.

Terrific design, very powerful engine, handled well, good mileage.
But..
Leaking sensor in the fuel tank, gas smell
radio died
radio died again
knock in the steering, lubed
knock in the steering, replaced something(half shaft?)
year later
Terrible knock in the steering, so bad I was afraid to drive it.
replaced tie-rod end.
developed another knock in the front end.
driver's electric window got intermittent, they couldn't duplicate problem
traded it in on a Honda.

This is on a 4 yr old car w/ 26k miles that spent most of its life in the garage.

My take.. good design, poor components.

BTW.. I didn't pay for any of these repairs, 5 yr. warranty. But I plan on keeping the car a long time and wanted something reliable.

[caisson71]

I agree with 1 and 3 but not 2. I've owned a number of GM autos, including the three I have now and dollar for dollar, they're as good as any other auto.

[Mrs. Shawnlaw]

Well, gee, if they would just come up with something better than their precious DexCool system they might sell something now and then!

[A CA Guy]

Seems like gov't should get out of this business.

I agree 200%.

[em2vn]

Neither a sucker nor a scum you stupid s.o.b but not someone stupid enough to come up with a knee jerk response like you posted when the topic of a union is even remotely involved.