TEXHAWK0

I think part of the deal is that if GM does not become profitable in 3 months, they have to repay the "loan".
If they are not already in Chapter 11 by then, having to pay the money back will probably put them there.
They still have to make serious changes in cost structure, including cutting wages, in the next 3 months.
Almost all other companies are having to cancel raises, and face layoffs or pay cuts, so why not the auto makers?

C6Tim

Yup, they are already spinning the news as the big bad republican senators are after the poor working mans last dime.

VettedCandidate

Kick it down the road until Obama, yes. I really don't think that the UAW is the biggest problem here but they do need to get rid of the job bank, etc. Obama is not going to be as blindly favorable to the UAW as many here seem to believe he'll be. I'm just amazed that Bush bothered to do this, especially considering his statements lately.

CENT Z06

I agree, this needs to work !

sly1

The problem is how??? When legacy costs are counted, GM is stuck with a labor rate of $73/hr compared to the mid $40s for their Japanese competition, and the UAW refuses to budge on their GM contract. Moreover, GM can't charge a premium for their cars because of their quality history. So what's the solution?

If Congress gives GM another $10B in Sept/Oct 2009, there will be a taxpayers uprising, regardless of how the clowns in Washington try to spin it.

V-Dub

FINALLY someone said it! Reading through this whole thread and it took 36 posts to point that out!

V-Dub

cthusker

.... the only thing that really torques me is the billions and billions simply tossed at banks and Wall Street firms. Where the hell was their plan to do anything but take money from the govt. These are same bunch of crooks that SCREAM when anyone talks about regulating them closer!! How much was AGI given with ZERO plan? Bottom line is when you fork over billions of taxpayers money there should be a concrete plan BEFORE one dime is given out......

steve burns

There was so much GM could have done to avoid their situation.
I just heard the union boss on the news tonight; he said he doesnt want to see GM take it out on the union. In other words, it doesnt seem that the union will be too flexible.

With the proper management, GM could pull out, but it will take massive changes, and lots of time.

steve burns

I argue that GM would have been in this trouble along time ago if it hadn't been for it's leadership. [Fire Suit On]

Dave[/QUOTE]

I maintain that GM's leadership knows little or nothing about the automobile business. GM could be the world leader in sales....how?
1. ending redundant bodies in different divisions
2. emphasis on dealer and salesmen training re: customer service,repair servicing and sales.
3. quality control: why are corvette batteries dying and tops flying off?
4. putting customers as #1 priority: loaner cars; 4 year warranties
5. a shift to volume lower priced cars, not low volume expensive cars.
6. emphasis on producing cutting edge vehicles: the volt is obsolete
already.

None of these has been implimented......

metal

The entire news conferance was more song and dance. No way from what I heard was there a plan for the required big turn around in 90 days....It's over.

jaki30

What a crock!

GQMGT

With the economy in the state that it is, who is going to be buying these world class quality cars ?????? How does GM start to make money???

vettesmith02

I couldn't own another manufacturer's car.

USA1C5

I'm glad to see GM get another chance. If they didn't get the loan the government should require all the foreign manufactures to pay back all the taxpayers the subsidies they've gotten over the years. For example here is a list of subsidies foreign manufactures have gotten.

Honda, Marysville, OH, 1980, $27 million*
Nissan, Smyrna, TN, 1980, $233 million**
Toyota, Georgetown, KY, 1985, $147 million
Honda, Anna, OH, 1985, $27 million*
Subaru, Lafayette, IN, 1986, $94 million
Honda, East Liberty, OH, 1987, $27 million*
BMW, Spartanburg, SC, 1992, $150 million
Mercedes-Benz, Vance, AL, 1993, $258 million
Toyota, Princeton, IN, 1995, $30 million
Nissan, Decherd, TN, 1995, $200 million**
Toyota, Buffalo, WV, 1996, more than $15 million
Honda, Lincoln, AL, 1999, $248 million
Nissan, Canton, MS, 2000, $295 million
Toyota, Huntsville, AL, 2001, $30 million
Hyundai, Montgomery, AL, 2002, $252 million
Toyota, San Antonio, TX, 2003, $133 million
Kia, West Point, GA, 2006, $400 million
Honda, Greensburg, IN, 2006, $141 million
Toyota, Blue Springs, MS, 2007, $300 million
Volkswagen, Chattanooga, TN, 2008, $577 million

saplumr

Yep! UAW needs to get in line with all other labor rates. Make and take the cuts or lose your jobs and lose everything. Seems simple enough to me!

USA1C5

I don't think labor cost is the major problem when labor only makes up about 10% of the cost. If labor worked for free you would only cut cost 10% and I don't think we want them to work for free. I'm proud my car was built by the UAW.

saplumr

Labor cost is a MAJOR problem. There would be people standing in line to make less than half what they pay!

Vettlldo

Maybe I missed the grand hoopla of new products introduced by foreign car makers but what exactly is going to sweep American's off their feet and go foreign? Please don't tell me it's a new Toyota Camry. I recently rented a 2008 Toyota Camry this week for business - a 200 mile trip - and I have to say it is a pathetic entry level vehicle. With 32,000 miles on the clock: It wouldn't start easily in cold weather, the interior rattled when cold, rear seat headrests visually impaired me when backing up, front end creaked on turns, steering wheel was too far away to use the arm rest and hold the steering wheel (even after adjustment), front windshield visor kept smacking the rear view mirror when pushed up against the windshield, radio was positioned high on the dash and impossible to scan channels while driving AND it had the most oddball seat adjuster on the planet. This may be great for a college kid who doesn't know the difference between a camry and a civic but I would NEVER buy this vehicle with my hard earned money.

USA1C5

Their pay is within a couple dollars of the non-union foreign manufacturers and in one foreign plant (Toyota), I know of, UAW makes less per hour, the problem is what they have to pay in retirement etc. American plants have been around 100 years and they have a big reirement payout where the foreign manufacturers don't. They havn't been around long enough for many retirees yet. What's American manufacturers to do, just cut off retirement to those that worked their whole life for it. I don't think so. The problem has to be solved somehow, but how?

C6Tim

I hear ya, but that is exactly the kind of thinking GM needs to avoid. Every little bit helps and when they say the words "it's only" when talking about their expenditures they are making a big mistake. No cut too small.

I just read where the UAW intends to lobby Obama to remove the stipulation Bush put on the loan that employee benefits and pay be reduced to match what the "transplants" get by the end of 2009. No doubt they will be successful and GM will never recover without more huge taxpayer "loans". The UAW has been playing the "hurting the poor working laborer" card this whole time and it really ticks me off. UAW workers are the highest paid unskilled, uneducated laborers in America. They make more in salary and benefits than most college graduates so I have zero sympathy for them.