Really? None of the assembly plants that GM has shut down, over the past
five years, have been bought by other auto manufactures. Why would any of
the foreign manufactures want to buy them in any event? Most of their
plants were built at taxpayers expense in non union states to attract them
to those states. Notice the Toyota ads that say they operate in new pants
worth billons of dollars. They never say they OWN those plants. They say
they assemble cars and trucks in several states, but if you look at the fine
print, its says they are assemble them of world sourced parts. You said it
yourself if GM goes under the jobs lost will go off shore. Do you think
Toyota will still assemble car in the US of Chinese parts when it will be
far cheaper to make the parts and the cars in China?
Yes because there's a bunch of laws that the federal government has
regulating the content of US work in cars. That's the only reason that
Toyota is here assembling cars in the first place. If they had their wishes
they would never have come here.
The only regulation is that the vehicle must display the country of origin
and the percentage of north American parts in the VIN and a label listing
the country of origin of the major components. Check the first digit of the
VIN on a Toyota. Except for the few built in the GM/Toyota plant, where the
UAW contract requires the use of at least 75% American parts, you will find
a 'J' meaning it was built in Japan or a '4' meaning it was assemble in the
US of between 40% and 70% imported parts and the vast majority have a '5'
meaning it was assemble in the US of less than 40% American parts. Vehicles
actually built in the US of at least 75% American parts display a '1'
First Delphi....then GM....and then Ford in 2006.....
Just WATCH AND SEE. Oh, all you GM and Delphi
retirees had better get used to no health coverage
or that nice monthly check in a short time also.
Here is a DIRECT Quote from the IF Newsletter 5 Months ago:
"You may not want to believe it but our economy
has been in disintegration since 1989 and only
one trick after another has salvaged it. Just look
at the dollar. It is only reflecting the collapse of a
once great economy. Soon the US dollar will cease
to be the world's reserve currency. We have major
corporations on the verge of bankruptcy, GM is a good
example. As GM goes, so goes America and what is good
for GM is good for America. Its debt will shortly be junk.
Its supplier, Delphi, along with GM, is under investigation
and will precede GM into bankruptcy. Potential retirees
and pensioners are going to be in for a big surprise - l
ike the loss of 65% to 75% of their pensions. GM has
$50 billion in debt to refinance over the next 20 months.
We do not believe the market can or will want to handle
it. The market cannot even handle the Treasury
refinancings. That means interest rates have to
move, jeopardizing the future of the housing market and
complicating and increasing the cost of debt service.
There are many more complicating factors that are
going to be moving into the forefront in the weeks
and months ahead. Prepare yourself - it will be a difficult journey. "
(The above was written in June of 2005)
DELPHI USA IS DEAD - GET USED TO IT UAW BUNKIE !!
GMAC, General Motors Acceptance Corp., contributes
about two-thirds of GM's profits. After three years
of $5,000 rebates per car, which was double the sector
average, car and truck sale growth is falling. GMAC's
$260 billion debt is larger than all of that of the auto division
combined. As you saw in the last issue, GM's euro bond
issues are trading at a yield of over 11%, which is certainly
junk quality. The money maker GMAC is faced with
declining vehicle sales and has been a major investor in
Fannie Mae and Freddie Mac mortgages, thus, as interest
rates rise and home prices fall, paper quality will come
into question and mortgage volume will dry up, especially
in cash outs and home equity loans. GMAC is facing a
double-edged sword. At GM the most profitable sales unit
is the SUV and with today's gasoline prices, they will suffer.
Sales overall for January and February were off 11% despite
having lowered prices in February. As you can see, the
market is simply saturated with vehicles. GM lost $2.6 billion
in Europe last year via Vauxhall, Saab and Opel and is
laying off 12,000 workers. Since 1980 the auto workforce
has shrunk by 70% due to deliberate de-industrialization
and, of course, thousands of smaller firms supplying the
industry have been phased out with massive job losses.
In 2006, GM either will pay off or refinance $44.7 billion
in debt and Ford has to do $37.1 billion or $174 billion
in debt. Can the market handle that at junk levels or will
they want too? That could be bonds with a 13-14%
coupon. Will financial firms, such as GMAC continue the
hobby of producing cars? We don't think so. Can you see
how deadly offshore production, outsourcing and
free trade and globalization has been for America?
Our industrial heartland has been destroyed. Fundamentally
both GM and GMAC are on a path to destruction as is Ford.
Borrowing costs have just jumped from 7.5% to over 11%.
Can they generate cash at these levels and still make a
profit? Delphi, the GM parts spin off, is now embroiled
in an Enron-type fraud scandal, which could indirectly
reflect on GM. Delphi has already informed 4,000 of its
salaried and retirees that it is ceasing to pay their health
care plan. GM and Delphi layoffs are over 10,000.
Suppliers are already at junk level and can only borrow
from GMAC to stay in business. Ford's Visteon is in
the same boat. The UAW is on a two-tier wage system
to save money and avoid layoffs.
If all of that wasn't bad enough GM's pension fund is
underfunded by $17 billion or is only funded to 80%
of its obligations. This comes as George and the neocons
push pension reform, better called, funding your plan.
This is a debt bomb and Washington knows it.
If reform passes Congress for the benefit of the
Pension Benefit Guaranty Corp., many companies
will achieve junk status. GM wants to split off GMAC
hoping to save GMAC. If that happens this year it is
guaranteed GM will go into bankruptcy. PBGC is
already $23 billion in debt and can not absorb the
obligations to GM's hundreds of thousands of
pensioners. This is a disaster of major proportions.
Plus, they'll lose GM's pension insurance premium
payments. Even if GMAC is spun off we do not believe
they will escape attachment by PBGC. It should have
been spun off three years ago.
(Of course Delphi Mexico and Asia will still be in business.
Delphi USA and it's retirees are going into bankruptcy.
Enjoy the ride folks! Money is GOD)
That tell us a lot about their intent.
I've read a lot about stock manipulation over the years and this is a
typical method used when some jerk wants to short-sell company stock.
My advice is to ignor this thread completely, so we don't fall into their
Nice try. If you don't like the message, discredit the messenger.
No matter who started it, the fact is that GM & Ford are about to go
down the same road already blazed by the steel companies and airlines.
U.S. auto parts sector vulnerable to Delphi strike
Reuters / October 14, 2005
CHICAGO -- The U.S. auto parts sector faces potential supply shocks if
hourly workers strike Delphi Corp., which is pursuing wage and benefit
concessions from its unions, a key focus of its bankruptcy reorganization,
an analyst said.
"It's a distinct possibility that a work action does take place somewhere
through the course of this bankruptcy," Fitch Ratings managing director Mark
Highlighting that possibility, Richard Shoemaker, the United Auto Workers
official responsible for labor contract negotiations with Delphi, told
Reuters on Thursday, Oct. 13, that a strike "certainly is one of the options
that is available" to the union.
Delphi, which filed the biggest bankruptcy in U.S. automotive history Oct. 8
in New York, has said it wants to negotiate significant cost cuts with its
unions and plans to submit written proposals to them next Friday.
However, Delphi also has told the U.S. Bankruptcy Court that it plans to
begin the process of rejecting the agreements in mid-December if it cannot
reach a deal with its unions that would significantly cut its U.S.
"We have not yet seen any supply disruptions, but it remains a key risk,"
Oline said. "That risk will only increase as we get closer to a date where
Delphi, if unable to achieve a contract with a UAW, needs to impose a
Delphi has about 50,600 employees in the United States, including 34,750
hourly workers, almost all represented by unions. Delphi had sought to
negotiate wage and benefit cuts from the UAW to avoid bankruptcy, amid
reports that suggested it sought cuts as deep as 63 percent.
"The extent of the wage and benefit reductions Delphi is seeking would be
difficult for any union to swallow easily," Oline said, adding that Fitch is
also keeping close watch on Delphi's plan for its pensions.
Smaller suppliers, which can be more vulnerable to cash flow interruptions
than larger companies, may feel some pressure because of payment
A missed customer payment could be a tipping point, but that has not
happened so far with the bankruptcy cases of Collins & Aikman Corp. and
Tower Automotive Inc. and appears unlikely in the Delphi case, said Neil De
Koker, president of the Original Equipment Suppliers Association.
"I don't suspect there will be a rash (of bankruptcies), but there will be
other Chapter 11s because the industry is still struggling," he added.
The vast majority of smaller suppliers probably have no more than a few
percentage points of business with any one company and should weather the
storm without having to file for bankruptcy themselves, De Koker said.
Collins & Aikman, which manufactures automotive interiors, filed for
bankruptcy protection in May and Tower Automotive, an auto-body frames
producer, filed for Chapter 11 in February.
Not true at all. I will be you a whole ton of money that the computer
you typed that on would be massively more expensive to purchase had it
been 100% made in the USA.
Certainly not all of the cost savings of off-shore production ends up in
the end customer's pocket, but a goodly portion of it does.
Have you noticed that those products which are primarily made in asia
have been on a long term downward price trend while those few thing
which are not easily imported into the US keep getting more expensive?
The consumer benefits, is the mantra of cheap imported goods.
I'm typing this on a computer that is a Bitsa, it's a PIII with a
Adaptec SCSI card and a 20 GB SCSI drive. All from dead, used computers
I put together. The keyboard is an old AT Clone originally off a 386,
big plug and all. It's almost old enough to vote. Computers could go up
by a factor of 10 as far as I am concerner, I have around $200 in this
I used to fix VGA monitors, we would put flybacks, horizontal output
transistors, you name it in them. Now you just landfill them. Phooey
phooey phooey. We would still have Amigas and Ataris and far more
efficient software if it wasn't for the onslaught of supercheap
unrepairable PC hardware.
The consumer benefits but the producer takes a high hard one up the
you know where. Where can I get a job as a professional consumer and
just consume stuff all day? We are all amateur consumers and
professional producers. I say cut off cheap imports because only the
idle rich and government drones will suffer.
Bret Ludwig wrote: " I used to fix VGA monitors, we would put flybacks,
horizontal output transistors, you name it in them. Now you just landfill
them. Phooey phooey phooey. We would still have Amigas and Ataris and far
more efficient software if it wasn't for the onslaught of supercheap
unrepairable PC hardware."
We need to stop being a disposable society. Business want us that way so
they can sell more product. It does not make them big profits if we can
repair our stuff. The two way radios I use at work or Motorola. They sell
two radios that look identical and with the same features, one is their
expensive model and they other is their cheaper version. Both use the same
case and internals. When either break at work they just keep the case and
put in a new internals in the old case. In the old days, the radio tech
would have hooked up his trusted soldering iron and instruments and found
what was bad with the circuitry and just changed the bad transistor or other
With electtronics the move is to integrate everything on a single chip or a
set of a few chips simply because what the devices are expected to do
nowadays is so complex that it's impossible to design it in discrete
that would have any reliability. Take an ordinary DSL modem, that is
a device that has as much computing power as a 15 year old Cray
And when you tie most of it up in a single chip, you cannot repair that
chip if it breaks..
Ted Mittelstaedt wrote: "With electtronics the move is to integrate
everything on a single chip or a set of a few chips simply because what the
devices are expected to do nowadays is so complex that it's impossible to
design it in discrete components that would have any reliability. Take an
ordinary DSL modem, that isa device that has as much computing power as a 15
year old Cray supercomputer.
And when you tie most of it up in a single chip, you cannot repair that chip
if it breaks.."
I agree with having to repair the chip but you van just replace one chip
instead of throwing the whole thing in the garbage and buying another. This
would reduce the demand on such things as plastic and resins used in making
theses device. So why not repair? Because the manufacture makes more money
selling you a whole new one then they do selling you just a chip. This has
made us a disposable society.
I have worked in both resin unit, a polypropylene catalyst production unit
and now an ethylene unit all within on manufacturing plant in the last 15
years. I have seen how much production has had to increase to keep up with
demands. The only slow down came in the late 80's and early 90's but it is
back up. When I started in the job in the resins unit, we made a 5 million
pounds of a resin used in coating computer circuitry boards. This run would
take about a month. When I transferred to the catalyst production unit, the
resin unit was making 25 millions pounds per year along with increases in
the 80 plus other resins they made. The increase in production was due the
request of current customers orders and new customers they acquired. I seen
the same thing happen in both the catalyst and ethylene units.
We are a disposable society, we need to put more demand on the three "R's".
Recycle, Reduce, Reuse
On 10/14/05 11:03 am Sarge tossed the following ingredients into the
ever-growing pot of cybersoup:
But when a replacement part is expensive compared to the price of the
whole device, and when you have to pay for a minimum of an hour's labor
at, say, $70/hr. (auto repairs in NY were $90/hr. two years ago), and
you can buy a new and improved model for $150 (built on an automated
assembly line in Asia supervised by $2/hr. workers) with a factory
warranty, why spend $100 fixing the old one?
Once upon a time I had a Zoom modem than had a 7 year guarantee. The
thing died after a couple of years. A bad chip. I sent it back and it
worked, for 2 more years and died again. By then I was tired of the
hassle and the slight expense. But it was almost worth it for me
because I had very special software that only worked with this Zoom
modem. And the software of answering the phone and interpreting a fax
or voice worked well and at that time, this was a rarity. It sounds
like something simple, but I found this combo actually worked like the
proverbial tank, as long you I defragged the drive before use. It was
that sensitive to operating systems and specific chips.
Had a Zoom modem, 7 year guarantee. The thing died after a couple of
years. A bad chip. I sent it back and it worked, for 2 more years and
died again. By then I was tired of the hassle and the slight expense of
shiping and $10 fee? But it was almost worth it for me because I had
software that only worked with this Zoom modem. And the software of
answering the phone and interpreting a fax or voice worked well and at
that time, this was a rarity for inexpensive hardware/software.
About swapping out chips? It's good training. I liked the challenge of
finding and swapping out chips. I learned a little about oscilloscopes,
logic probes and the quickest way to destroy a computer. Nothing like
soldering on bubble wrap that was pink and conductive. Either that or
my soldering technique left something to be desired.
You are sadly mistaken in your computer logic. Computer technology is
disposable in that it is evolving so rapidly that thing posssible today
were not a few years ago and thing not possible today will be in a few
years. If you are still using a P3, more power to you but you are way
behind the power curve and I am not even talking to be state of the art.
A 400 buck entry system is light years ahead of your system.
Go right ahead, call a general strike of all unionized employees in the
US of A. Keep it up for at least 12 months. At the end of that game
there will be no union jobs left and the country will simply go on just
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