GM, Chrysler goin' under.....(maybe).....

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I'm prepping for the worst. My employer relied heavily on advertising dollars from automakers. Needless to say the last 8 months have gotten really rough.
 
"Republican senators had earlier balked at the plan, instead demanding wage concessions and pension reform."

Why are executive salaries and bonuses never mentioned? While I do agree that the UAW is just being stubborn..and are just hanging themselves, I have to say that if I was the only one in a company that was asked to take a pay cut while the fatcats in the ivory tower are unaffected, I'd tell them to "get bent" too.
 
I don't think GM will go under, just can't see that happening. But if it does, what will the President and the Secrete Service do for vehicles?

The Secrete Service can drive around in black Honda Elements and the President will be in a stretched Lexus.
 
Originally Posted By: ViragoBry


Why are executive salaries and bonuses never mentioned?


Because that point is irrelevant. If a CEO makes $50 million and the company does well, who cares? It's not up to you to decide who makes what!

If this was a government entity where it was tax payer funded, I would agree with you, but it's not, it's (still) private industry not bound by dictates of who makes what.
 
The problem is we live in a what's in it for me society. The top brass wants what's best for them, the UAW workers want what's best for them, and neither could care less about what's best for the rest of us.
 
If Chrysler stays in business, the 300 would make a good official vehicle...all black, tinted windows, Hemi engine...

:D
 
It's easier to understand if you separate the UAW organization from the UAW members. The members might be in trouble but the organization is fine.

The UAW has plenty of money on hand to ride out a storm. They'll grandstand for their members but the organization won't suffer much, at least for awhile.

The UAW also knows BK means restructuring, not closing the doors forever. Cars and trucks will still be built. Factories will still run. The UAW will still have money coming in the door. They have plenty of money in the bank.

If the sutomakers BK, they can restructure or walk away from certain types of contacts. The UAW will just sit back, let the automakers deal with the problems, let the creditors and the shareholders slug it out and get back to doing what they do as soon as the dust clears.
 
Well just take a look at Stock Futures this morning, and the Auto Bailout headlines. The Big Three still have an effect on the markets.

Frank D
 
Originally Posted By: ViragoBry
"Republican senators had earlier balked at the plan, instead demanding wage concessions and pension reform."

Why are executive salaries and bonuses never mentioned? While I do agree that the UAW is just being stubborn..and are just hanging themselves, I have to say that if I was the only one in a company that was asked to take a pay cut while the fatcats in the ivory tower are unaffected, I'd tell them to "get bent" too.


Ditto

I think all levels in the company from CEO down to assembly line workers are in denial and refuse to give up a big chunk of their pay/benefits. And you make a good point that there is plenty of management which ought to give up as much as UAW, probably even more as they got them into this mess.

They are all shell shocked and waiting for a miracle.
 
Originally Posted By: ToyotaNSaturn
Originally Posted By: ViragoBry


Why are executive salaries and bonuses never mentioned?


Because that point is irrelevant. If a CEO makes $50 million and the company does well, who cares? It's not up to you to decide who makes what!

If this was a government entity where it was tax payer funded, I would agree with you, but it's not, it's (still) private industry not bound by dictates of who makes what.


You're not making sense. The senate is forced to care because the company is sinking. It's FAR from doing well. You're FOR them scrutizing UAW wages but executive wages are none of their business? Wages are wages regardless of whos pocket their going into. They're a cost that needs to be reduced across the board, not just at a labor level.
 
Originally Posted By: bob_ninja
They are all shell shocked and waiting for a miracle.


Agreed. I'd be surprised if they aren't sitting back thinking "Congress will never let us really go bankrupt. We will still be saved in the 11th hour."

-Bryan
 
Originally Posted By: Johnny
I don't think GM will go under, just can't see that happening....


That entire story about 1-2 million jobs vanishing over night and GM suddenly disappearing into thin air is [censored]. Certainly GM has excellent chances to emerge from chapter 11 in a much better shape and much stronger company, but much smaller.

Government would be happy to guarantee car warranties and any other liabilities to placate GM clients and suppliers. However, chapter 11 process needs to change their business model, reduce the costs to the sufficient level. It is clear now that can happen only in bankruptcy when a judge forces people to give up things.
 
Originally Posted By: Bryan K. Walton
Originally Posted By: bob_ninja
They are all shell shocked and waiting for a miracle.


Agreed. I'd be surprised if they aren't sitting back thinking "Congress will never let us really go bankrupt. We will still be saved in the 11th hour."

-Bryan


Just like Lehman Brothers - too big to fail, all is fine, then one day ... ops ***
frown.gif
 
They should have restructured in bankruptcy long before now. This bail out business is just postponing what needs to be done.
Come out of bankruptcy lean and mean.
 
Quote:
If this was a government entity where it was tax payer funded, I would agree with you, but it's not, it's (still) private industry not bound by dictates of who makes what.


But when they beg for taxpayer dollars it is no longer a private industry if taxpayer dollars are received.

John
 
Here's the story on yahoo - http://news.yahoo.com/s/ap/20081212/ap_on_bi_ge/meltdown_autos

A bankruptcy court will never allow the companies or the union to keep doing what they're doing since it's a failed process. Only after they emerged from bankruptcy could it back to the same old same old.

They should have taken this deal and been happy since it's a lot like what will be forced upon them if they end up in court.

Time will tell...
 
Originally Posted By: Bryan K. Walton
I'd be surprised if they aren't sitting back thinking "Congress will never let us really go bankrupt. We will still be saved in the 11th hour."


Hmm, perhaps that line of thinking is correct. Money.cnn.com has a "Breaking News" section at the top of their web page:
Quote:
White House says it will consider using money from $700B bailout to 'prevent a collapse of troubled automakers.'


Here is the full story.

I guess the bailout is going to happen, regardless of what Congress does.

-Bryan
 
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All I know is I have no money invested in the Big Three, yet the Stock Futures this morning are pointing to a blood bath. This time and "some" of the prior drops all started with headlines mentioning the Big Three. Granted the meltdown is very deep rooted, and was not caused directly by the Big Three, they aren't helping matters on Wall Street. Its hurting all or us in some way.

But as always the only thing that matters on Wall Street is the close, lets see what happens today.

Frank D
 
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