GM Declares Bankruptcy Imminent After $4.2 Billion Third Quarter Loss
- Thread starter TinmanMS6
- Start date
How many people live in Northern Virginia when Worldcom, AOL, PSInet, Sprint, and Micro Strategy all laid-off thousands of workers? I did, and there was no bailout for SysAdmins or Data Center installers who were all highly skilled but dependent on the continued growth of IT services.
Right now the gambling industry is reeling in Nevada and the total number of people employed by that industry is greater then the auto industry in the US. No one is lobbying Congress for a bailout of the gambling industry.
On another website I read somone mention the super-fantaic-ultra-incredible amount of R&D funding that is spent in and around SE Michigan...something like several billion dollars. But companies with major operations within 5 miles of where I sit right now generate LOCAL revenus of $65B every year! Mainly in the defense and intel services marketspace, which BTW, is not considered safe under new POTUS Obama. No one here is asking for a bailout.
However, that did not stop me from voting for Obama. I knew that there was a possibility that could loose my job due to cuts in Defense spending under Obama. But I felt strongly that an Obama presidency was the right thing for this country. Even if it meant losing my job.
Folks, we need to do whats right for the majority, not the minority. For if we don't everyone will lose.
The government shouldnt be bailing anyone out at all...smart business practices = profitable business...stupid business practices = out of business
that's how it should work. Government is here to keep the peace and protect us from invaders...end of story
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- -- 03 P5 / 23 CX-5 --
A big problem here with all of this is the fact that the government is not leading by example with respect to how they run their s***. Everyone else is just following their example of greed, unaccountability & profit over responsibility. So how does the government have a leg to stand on telling small business & citizens about being fiscally responsible? Lead by ******* example please! Reward people & businesses for doing right things not for ******* the most people the hardest. Nothing will change until that happens, it'll only be survival of the scaminest. **** or be ****** is basically what it's turned into.
They did not bail them out because that was part of the plan to take the jobs overseas, why is it in these times when american's are loosing their jobs work permits are still being issued to foreigner's to come here and work for big corporations? We need to get out of NAFTA and stop outsourcing everything.
People who were working for an average of 10 -15 per hr in american factories, are now working at wal mart for 8 per hr selling chinese goods. This country is self sufficent so why are we relying on other countries?
I agree with you 100%, but the goverment is not working for either of us, they only working for big corporations with lobbyist in congress.
Check out Alex Jones website www.infowars.com, it will wake you up as to what's really going on.
astraelraen
Member
"The financial straits that the Big Three find themselves in is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force, Mr. Shelby said in a statement. The financial situation facing the Big Three is not a national problem, but their problem."
Companies don't fail and just disappear. In all likely hood if GM/Ford/Chrysler failed they would go into some form of bankruptcy where they would either restructure, merge with another company or simply be bought outright.
This would benefit the companies in multiple ways. It would reduce the supply of cars in the market due to removing a competitor. GM themselves said there were too many manufacturers in the segment and that if they could afford to merge/buy Chrysler they would do it JUST to remove a competitor from the marketplace, or just to remove the cars that Chrysler sells. They SPECIFICALLY said that they would probably discontinue almost all of Chrysler's line of cars. There is a glut of cars in the market right now.
Secondly, bankruptcy would allow them to really strip down their labor agreements with the UAW, which is a large portion of their problem. GM pays most of their legacy workers something like 30 bucks an hour in addition to full benefits, this probably equals something like 40-50/an hour. That is a BURDEN in producing competitive cars. No manufacturing worker deserves to stand on an assembly line and stick door handles in a car for 50 bucks an hour, that's ridiculous. Their new UAW contracts cost something like 15 bucks an hour and partial benefits.
Noone can say that automakers cannot produce a profitable car in the US. Foreign firms do it everyday. You can use US labor to produce cars and still make money, but not with ridiculous legacy labor agreements.
Yes it would hurt significantly for these companies to go under, jobs would be lost and some companies probably would go out of business. It happens, you can't keep producing something that noone is buying... no matter how much people want low unemployment numbers.
In the end at worse we would end up with Fogmysler or Gorder or Chrygmord. American auto manufacturing would not disappear.
Companies don't fail and just disappear. In all likely hood if GM/Ford/Chrysler failed they would go into some form of bankruptcy where they would either restructure, merge with another company or simply be bought outright.
This would benefit the companies in multiple ways. It would reduce the supply of cars in the market due to removing a competitor. GM themselves said there were too many manufacturers in the segment and that if they could afford to merge/buy Chrysler they would do it JUST to remove a competitor from the marketplace, or just to remove the cars that Chrysler sells. They SPECIFICALLY said that they would probably discontinue almost all of Chrysler's line of cars. There is a glut of cars in the market right now.
Secondly, bankruptcy would allow them to really strip down their labor agreements with the UAW, which is a large portion of their problem. GM pays most of their legacy workers something like 30 bucks an hour in addition to full benefits, this probably equals something like 40-50/an hour. That is a BURDEN in producing competitive cars. No manufacturing worker deserves to stand on an assembly line and stick door handles in a car for 50 bucks an hour, that's ridiculous. Their new UAW contracts cost something like 15 bucks an hour and partial benefits.
Noone can say that automakers cannot produce a profitable car in the US. Foreign firms do it everyday. You can use US labor to produce cars and still make money, but not with ridiculous legacy labor agreements.
Yes it would hurt significantly for these companies to go under, jobs would be lost and some companies probably would go out of business. It happens, you can't keep producing something that noone is buying... no matter how much people want low unemployment numbers.
In the end at worse we would end up with Fogmysler or Gorder or Chrygmord. American auto manufacturing would not disappear.
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- 92 & 16 Meyatas
greed, poor management and products suck! my wifes company is about 90% automotive...after laying off 150 workers over the last 9 months, moving what's left of the plant to TN this past summer...today they announced a longer holiday shut down (no pay) slaried workers will get a 10% pay decrease effective today, and no matching 401k contributions...the end is near!
