GM Drops WJ & KJ?

[Jim]

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what people arent considering is the PR damage done to GM during this time. who the hell in their right mind would buy a car from GM
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Good point! The US car industry HAS been damaged (to some extent) by all the uncertainlty.
The problem, however, is not GM's inability to SELL cars - Last year they sold nearly 10 Million car worldwide. Toyota also sold nearly the EXACT number. Legacy costs, however, caused GM to LOSE BILLIONS while Toyota EARNED BILLIONS on the same number of units. The legacy cost structure is not sustainable - no matter how much Washington pumps down the hole.
I've been an "advocate" of a Chapter 11 restructuring for some time.
While EVERYBODY takes a "haircut" it's the only way the iceburg can be put behind us. I'd take my chances with a responsible and experienced bankruptcy judge before I'd let Harry Reid, Nancy Pelosi or, for-that-matter, George Bush ruin the industry.
Give the industry interim bankruptcy funding, dump the pensions on the Pension Benefit Guarantee Corp, trim (not eleiminate) the benefits to those no longer employed and keep hourly wages where they are now with a more rationally financed benefit package and the industry can make money.

BTW: The industry that sold us cars for the last 100 years can certainly sell us on buying from a reliable and sustainable American Car Industry.

 

[Ron]

The long and short of it is this.

a. The big 3 have lost money on their North American manufacturing operations for a long, long time.

b. The cause is the unsustainable labor and burden rates they currently operate under. You can split the pie however you want but the pie is not large enough to support the current workers and all the retirees, which are currently a large multiple of the people working. This is a preview of the coming financial crises in social security when the support pyramid becomes top heavy.

c. The current debt structure is also unsustainable no mater how the economy does in the future without addressing this and b above.

d. The only solution is chapter 11. It will happen sooner or later. The only issue is how much money the government will shove down the rat hole before the inevitable outcome. Since the majority of Americans do not support this bailout, among others, even the politicians who are on the dole from the UAW will have to throw in the towel for self preservation if for no other reason.

e. Under the current financial situation expecting much support from the big 3 for any drag racing endeavors is like betting on a horse with three or less legs.

 

[Super Mod]

what people arent considering is the PR damage done to GM during this time. who the hell in their right mind would buy a car from GM (or ford and chrysler for that matter) with all the bad news.

IF you needed a vehicle and IF the government guaranteed the warranties somehow by a third party.......you would be crazy NOT to buy a big 3 vehicle. With the back log of vehicles the deals coming up are going to be insane!!

 

[Erik]

although I'm very anti-bailout of any kind, I'da much rather seen our money go to the manufacture base who actually produce things as opposed to worthless eater ny bankers, who contribute absolutely nothing to society besides putting people in debt

 

[FABMAN]

You know, I'm more concerned about what happens to the years of hard work that Warren has put into R & D of the new phase Big Block. Will GM sell out to the after market so the parts they need will be available for the race teams engine builders. As far as buying Big 3 product not a problem, it all started here and it will survive and remain here, it is just going to take some time.

 

[Larry]

So much for all that politics has no place on a Drag Racing site !
Just glancing at posts but I did not see the fact that Congress Mandates what the Big three build in the way of cars even if they don't sell.

The Big 3 is still trying to operate as if they had a 49 percent share they had just a couple decades ago.

If a Bankruptcy Judge ruled on the UAW contracts and on the number of different models and the number of dealerships they have and Congress delayed mandated changes and let market forces work then wallah , profitability returns.
The UAW retirement , medical , and layoff stuff are out of line not wages and benefits so much for current active employees.
I have heard UAW employees complaining about employees with no particular job or discontinued jobs being paid to show up just like the Sopranos show.

Americans are the most productive workers in the world when allowd to be so.
I support internal unions but not national unions. Too much coruption involved. Been there done that !

 

[mike]

although i'm very anti-bailout of any kind, i'da much rather seen our money go to the manufacture base who actually produce things as opposed to worthless eater ny bankers, who contribute absolutely nothing to society besides putting people in debt

ex-fricken'-xactly!!!