GM Recovery hopes

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GM's hopes weaken.
http://biz.yahoo.com/ap/060329/gm_accounting.html?.v=2

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selling off assets
http://www.forbes.com/business/energy/feeds/ap/2006/03/29/ap2632326.html
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My $0.02 worth
If GM's accounting "irregularities" (polite speak for fraud?) prevent the sale of GMAC then GM's hope of getting 10-12 Billion for that fails and there is no money to backstop/subsidize Delphi for their wage cuts and flowback to GM. Also no money for Delphi pension liabilities. I would suppose the GM buyouts would come out of the pool of cash (about 20B or so ??) further reducing that pool. Back to Delphi. Miller, realizing GM is unable to backstop him, decides to go for voiding the union contracts. Weeks pass and the judge agrees to void the contracts. 1-3 weeks for the shock to set in for the Delphi folks on the floor. Delphi people generally feel that since they will no longer be able to purchase the cars that they make parts for (I am *not* talking about decked out versions) they are going down (way, way down) so there is nothing to loose-a kamikaze mind set takes hold. Strike takes place. Three days, or so, later GM shuts down. Two months, or less, later GM files for bankruptcy. Ford follows shortly thereafter.
Catastrophic economic, social and political consequences follow.
All of this nasty scenario could start with the failure of the sale of GMAC and run downhill from there.
Then there is the matter of the upcoming contract talks in '07.
This Spring and Summer is going to be a really wild ride-fasten your seat and shoulder belts!
Does GM have cash to fund comeback? (03/30/06) http://www.detnews.com/apps/pbcs.dll/article?AID=/20060330/AUTO01/603300398/1148
GM: More woes, more cuts ahead (03/29/06) http://www.detnews.com/apps/pbcs.dll/article?AID=/20060329/AUTO01/603290388/1148
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Gone off our "medication" again, have we?
Naughty, naughty.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060330/AUTO01/603300398/1148
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060329/AUTO01/603290388/1148
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GLitwinski wrote:

commiserate with each other while we laugh at their venomous antics. It would appear that life has dealt them all a poor hand. *LOL*
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A pity you PWT types are of such limited intellect.

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Jim Higgins wrote:

A pity you bitter old reprobates are of such limited focus. Sad really. :-( It is quite self-destructive to be so focused on the negatives in life. I'll bet that you all have high cholesterol/blood pressure.Surely there must be something positive going on in your lives. Well, in your case . . . maybe not. Sad. :-(
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Try an objective evaluation instead of a PWT knee jerk.

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Hydrogen fuelGeneral Motors needs to give a green light to heavy investment to develop a mass-market hydrogen-powered car within the next 18 months to ensure the US carmaker - struggling with a financial crisis - does not get left behind on clean vehicles
Larry Burns, head of research and planning at GM, said the carmaker needed to move fuel cell propulsion from the laboratory to full development
Many others already way ahead of GM and left them back in the dust and maybe they will never get off the ground again
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A very long time in coming but written into their book decades ago. The sin is the obscene salary for the company killers.
Some of the Europeans will follow suit.
neguhe =

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Just what exactly do you mean by that "sin"?
wrote:

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Looks like proper English to me.
Noun = Sin Verb = is Object = obscene salary
People thought they were buying a good dividend but were shafted by a 30% loss instead. I read mgmt holds a puny 0.11% of the outstanding shares.
To be paid over $4x10*6 for that performance and non solutions is a sin. Next are the funds and institutions of public trust who either out of incompetence or duress risk the money in their charges.
Finally the sin of the DOW 30 listing GM as the only company representing the auto business and it isn't even a pure auto business.
Seems clear to me. Sins are evil and that describes GM and all of its barrels of snakes.
a = On Thu, 30 Mar 2006 19:07:37 -0800, "GLitwinski"

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arthur wrote:

high salaries are not really the problem from the standpoint of stockholders.
If an executive knows how to keep the stock up and the company profitable, he should get anything that accomplishes this goal.
The sin is really the failure of GM to compete against the Japanese and Europeans.
A company needs to pay execs well in order to survive.
If an exec feels she is underpaid relative to her peers she can go to a competitor and reveal trade secrets, which will undermine a company even more.
Execs are paid to be keepers of the secrets, and their payment is a form of hush money.
This is what Ferdinand Lundberg says in "The Rich and the Super Rich."
s.
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snipped-for-privacy@nospam.nix wrote:

You might try reading the articles you link to.
It stated that York, Kerkorian's partner, is taking positive moves to save the company by cutting executive salaries and and possibly eliminating the dividend altogether.
they also appear to be negotiating seriously with the unions.
s.
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IMO one gets a good bang for their buck with GM products - I just bought one. <negotiating seriously with the unions> - I don't think that their union mentality will provide for major concessions. Unfortunately, IMO the only long term solution will be chap. 11. It'll be interesting to watch the Delphi situation.
--
Jerry


"sarp" <the snipped-for-privacy@yahoo.com> wrote in message
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Does the name Lee Iococca mean anything?
It is all about management, or lack of it, or rising to the level of incompetence.
a =

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It is the rising level of incompetence
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Whoa! You bought a Corvette? I envy you.
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Especially the ability to afford the gasoline. ;)
I recall the old GM Dynaflow A/T. Worse POS ever designed and built. Guaranteed not to survive pass 45K miles ... at best ... if only driven by the senior church lady on Sunday.
a =

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Really? Can't prove that by me. We have member in our antique car club that owns several late forties end early fifty Buicks with Dynaflow trannys the are still running great nearly 60 years later.
mike hunt
wrote:

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