Forgive me if this is already being discussed but I didnt see anything.

http://quote.bloomberg.com/apps/news...d=a8ENDuudqUMQ

http://www.forbes.com/2005/03/24/cx_...ralmotors.html

http://www.forbes.com/2005/03/25/cz_jf_0325flint.html

 

There used to be a saying "What's good for General Motors is good for America" or something to that effect. Of course, some of it is their own fault, for building some pretty lame vehicles. but you're seeing a general trend of American manufacturing. As someone who's been employed in manufacturing for 30 years, I saw this begin about March of 1999, aand it's been sliding ever since. Our jobs are heading overseas at an alarming rate, and it's not only manufacturing; you can reach a guy on the phone in India for technical support, or even directory assistance! I guess we're all just gonna sell each other hamburgers. You want fries with that....? Just for your Gee whizz file- they are gonna start selling Chinese cars here in 2007.

 

It must be time to negotiate a new contract with those type of rumors being generated on the floor .

One of the oldest Corporate ploys on the market . Gm has surpassed their Canadian profit margin here this year by unexpected purportions .

 

It has been said that numbers don't lie but people can lie with numbers. However, I would not advise any one who suspects GM's problem is simply a ploy to rush out and buy any GM bonds. GM is in serious trouble and if they are to stay in business, management and the unions both have to be a part of the solution.
Dono

 

Dono: You said a mouthful there sport . If they are in the kind of dire straights they would have us believe they had better start looking for another Lee Iacoca
loke Chrysler did to turn it's story around as well as the give and take that will have to come about to create black ink again :

 

Iacocca could not have saved Chrysler were it not for Congress approving a huge federal loan to bail out the ailing auto manufacturer. This sparked incredible outrage at the time for the feds to be supporting private enterprise and I seriously doubt GM will be able to emulate this trick. Iacocca is often lauded as a business mastermind but remember the series of cars he brought out that were supposed to be the company's salvation - the K cars? Hard to find a more miserable excuse for a car. GM is just too top heavy with debt with their health care plan and generous pension plan. Something will have to give in order for GM to survive ever increasing competition both here and abroad.

 

aero: Granted he was not the be all and end all but someone did have to convince the Goobermint that Chrysler was worth saving .

Lets not forget the concessions agreed to by the employees to contribute to the recovery as well which have not been regained yet even with Chrysler riding the chrome horse at present .

As I posted earlier GM is doing fine in Can. with 1/2 their declared profits being generated with only 1/8 of their work force .

Perhaps they will now be looking for more Gov. concessions here as well to boost these profits even more .

The Japanese just gained these consessions here to build yet another assembly plant in Cambridge Ont. that will be capable of producung not one specific vehicle but several with an easy line change and reprogramming of the robots .

I guess if we are going to be buying them we may as well be building them as well .

 

believe me boys(and ladies) when I say that manufacturing is losing TONS of jobs overseas(china mostly) I work in an air compressor manufacturing plant,and we are getting more and more castings from china. Yes,it is cheaper for our company to buy overseas stuff,but is costing the american foundry workers their jobs at the benefit of our money savings. It's corporate greed at it's best. we make a higher profit margin at the expense of other american companies. it will be a miracle if I make it through this year without taking a major pay cut because they are looking at ways to save money. might be time to start looking for another job,and i have 12 years senority there . anyhow guess this might have not been the right thread for this post,but here it is anyhow

 

Jerry,
Points well taken. Mr. Iacocca's tact was to threaten to declare insolvency and close down the company throwing thousands of workers onto the streets. At that time, unemployment was rampant in the country. Congress agreed only because the costs of extended unemployment benefits would cost nearly the same. To his credit, Iacocca did repay those loans in full and early as I remember. A neat feat of gamesmanship on his part. Personally, I like the guy and rue the fact there are so few strong corporate leaders any more. As to the 50% profits from 1/8 workforce, I could be wrong, but last time I read about GM's financial pickle, it seemed their finance operation, GMAC Credit, was contributing the largest percentage of their net profits while the manufacturing sector was lagging far behind expectations. I don't remember whether those figures were worldwide or just for the US market, so your figures may offer a glimmer of hope for the old General.

 

aero: Yes I liked Lee as well . he not only had horse sense but carisma to his credit . I'm sure the Gov. was considering the loss of income tax they would also suffer at the time before having to shell out tax bucks to those it would have left unemployed .

GM's economic figures for the corporate year just ended were posted it an artical in the Toronto Star's Financial Section and were only related to the production and assembly of their vehicles .

They were waving a feather as they had just struck a deal with the Gov. prior to that to increase production facilities and annex some Gov. land to expand
2 different operations . Tax breaks , levy consessions etc. to enhance greater employment which in turn creates more income for the Gov. as income tax on employees as well as GM.

Incentives of this nature are commonplace here to enhance investment and production facilities . I once worked in a Rockwell Plant (who were one of the worlds biggest manufacturing companies of the time ) who got free land and 10 years free land tax to build a plant and employ people in an area that was classified depressed because of the restrictions and regulations in place to preserve the green Lakeland Playland for our fellow citizens of the south to
build cottages in and play on the weekends . The plant ran for 15 years then moved to Alabama where they done the same deal there .

 

GM has been going down hill since 1972, they have been playing off their reputation since then but its finally caught up to them, I read some where they consider thier stock junk bond now, to bad it use to be a great company