This doesn't look good for GM
Thread Starter
|
Senior User
Joined: Feb 2004
Posts: 137
Likes: 0
From: WALLINGFORD CT
This doesn't look good for GM
Not only are they cutting 25,000 jobs, they are also going outside the US for what they call buying components. Not that I care about GM but I don't like to see work leaving the US. http://money.cnn.com/2005/06/07/news...ex.htm?cnn=yes
Post Fiend
Joined: Feb 2004
Posts: 10,728
Likes: 1
From: Damascus-Boring, Ore
GM also announced plans to buy more components from suppliers outside the United States, and reported it couldn't be sure it would win needed health care cost cuts from the United Auto Workers union.
Reading between the lines, it's key that both statements are made at the same time. If the UAW hasn't figured it out already, GM's declared open season on them.
Reading between the lines, it's key that both statements are made at the same time. If the UAW hasn't figured it out already, GM's declared open season on them.
Postmaster
Joined: Apr 2001
Posts: 3,818
Likes: 3
Read further between the lines about GM's latest ad campaign - deep, deep discounting and offering all vehicles (Except Corvette and Hummer) at employee pricing levels. GM is desperate to move a big inventory and keep production lines open but this will spark a price war with Ford. It will be bargain city for buyers but I fear this will ultimately wind up wounding both companies financially.
Post Fiend
Joined: Jan 2003
Posts: 9,748
Likes: 16
From: Connecticut
Originally Posted by polarbear
GM also announced plans to buy more components from suppliers outside the United States, and reported it couldn't be sure it would win needed health care cost cuts from the United Auto Workers union.
Reading between the lines, it's key that both statements are made at the same time. If the UAW hasn't figured it out already, GM's declared open season on them.
Trending Topics
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
Didn't someone post here recently that a memo went out to GM employees begging them to buy a new vehicle right now? How'd you like to be one of those saps right now: "thanks for buying a new Cadillac- and BTW, here's your pink slip..."
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
Rezvani's Latest Post-Apocalytic Monster Is a Ford F-150 Raptor Underneath
Verdad Gallardo
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
2026 Shelby F-150 Off-Road: Better Than a Raptor R?
Brett Foote
Posting Guru
Joined: Jun 1999
Posts: 2,404
Likes: 1
From: Everett, Wa
I do see this as the open round of contract talks. Gm is saying more capacity than demand. They don't want to pay workers who are not working. When this contract is up we are shutting down factories, get use to the idea.
I personnely think that GM was stupid for ever signing a contract like that. If this is what there contracts are like its no wonder they are in trouble. And even though I support unions in general in this case I could not. A company must be allowed to be nimble enough to make changes when the market demands including laying off people. But having to pay them there full salary will not working does not save the company any money.
When unions take actions like this they are not helping there cause.
I personnely think that GM was stupid for ever signing a contract like that. If this is what there contracts are like its no wonder they are in trouble. And even though I support unions in general in this case I could not. A company must be allowed to be nimble enough to make changes when the market demands including laying off people. But having to pay them there full salary will not working does not save the company any money.
When unions take actions like this they are not helping there cause.
FTE Leadership Emeritus
Joined: May 2004
Posts: 18,787
Likes: 30
From: Melbourne, Aus
Originally Posted by aerocolorado
GM is desperate to move a big inventory and keep production lines open but this will spark a price war with Ford. It will be bargain city for buyers but I fear this will ultimately wind up wounding both companies financially.
At this point in time, Ford is far more concerned (In the N.A. market anyway) about profit than marketshare.