It Finally Happened....GM Bonds Rated Junk

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Joseph Oberlander wrote:


BS! The workers pay tax up the kazoo not the employer. Net gain for the employer.

I didn't say the Japs didn't pay their retirees well, I said they don't have as many retirees to pay. Net gain for the employer.
Maybe you should move to Japan, you seem to think they are the ultimate in manufacturing.
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The average Japanese auto worker can not afford to buy most of the cars they build. The buy little 700 CC puddle jumper cars, for the most part ;)
mike hunt
No One You Know wrote:

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snipped-for-privacy@mailcity.com wrote:

actually, they can easily afford them. They choose not to because of the insane regulations and fees surrounding registering anything with over a 2.0L engine.
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That all part of WHY the average Japanese auto worker can not afford to buy most of the cars they build. LOL
mike hunt
Joseph Oberlander wrote:

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Nice try. You left out the part that GM has ~$300 Billion in debt. With a junk rating on their bonds now, as current bonds come due, they will need to issue new "Junk" bonds to "cover" at 3-4 times the the interest of the bonds they replaced (or dip into some of the cash you speak of...which will dry up REAL FAST if they do that). Servicing that much debt with junk bonds will become quite difficult in their current financial and cash-flow situation for any length of time. GM has some very real and freightening financial challenges at the moment.

These are good points. Not sure of the relivance of them though. These are known realities that can (and must) be managed to if one wants to stay in business since that is the environment.

You mean "Big Two". Chrysler is German owned now. They don't count.
Question. If the industry today simply can't support the salaries/benefits/etc., then what? Take for example the retail and banking industries. Salaries there are typically below average because the profits attainable in those industries simply can't support "average" salaries. Been that way in those industries for decades. IF the reality you speak of is that the current auto industry "environment" won't allow the profits that it once did (for all the reasons you state) and can not support the current employee costs here in the US, then what is the solution? It may well be that the "gravy train" is over for generous employee packages in this industry. The dollars simply may no longer be there to keep it going (or so it seems). Auto workers may have no choice but to get used to what most of the rest of the people that work in the US have in the way of salaries, pensions (most people don't have pensions these days, by the way), etc.
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You are free to believe shat ever you wish but many economist disagree with your opinion. I'll repost the part of my post that you chose to deleted. Read it again ;)

move, that lead the other US car and other US manufacture to get with the effort to restart the economy. The Japanese and other import manufactures did next to nothing, except to take more and more money out of the US tax free.

the future, for your children and grand children, you better start looking at the labels on the things you buy and buy more American good before it is too late. Don't be one of the people out sourcing your own offsprings jobs
mike hunt
tango wrote:

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