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.
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)
GM: More woes, more cuts ahead (03/29/06)
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. :-(
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
Many others already way ahead of GM and left them back in the dust and
maybe they will never get off the ground again
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
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.
On Thu, 30 Mar 2006 19:07:37 -0800, "GLitwinski"
high salaries are not really the problem from the standpoint of
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
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
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."
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.
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
"sarp" <the firstname.lastname@example.org> wrote in message
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.
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.
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