Gm going bk
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Gm going bk
BREAKING NEWS: General Motors Rumored to be Preparing for Bankruptcy Filing.
If true all of GM's union wage contracts will be voided. Which means their cost structure in comparison to Ford's, will be incrementally lower. How will Ford counter this?
If true all of GM's union wage contracts will be voided. Which means their cost structure in comparison to Ford's, will be incrementally lower. How will Ford counter this?
Post Fiend
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From: Neenah, Wisconsin
IF...gm can walk away from its contracts.....i'd bet that it takes a big hit in consumer confidence and ford can for a short time charge more being that they're doing financially well....I think people in these times want to support companies that are doing well
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I don't believe that this type of a corporate re-organization will void the labor agreements or adversely affect the contracts as they exist. I am certain that it will have a ripple effect in future collective bargaining efforts. This of course will change the throughout the UAW and the big three.
Tim
Tim
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From: Sheridan/W Laffayette, IN
I slightly disagree. Ford will be great but not as great. It will cause price increases on vehicles because that means GM can't make as many vehicles with all the parts from the B3 coming from the same source. Ford is still going to be in the best shape.
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It depends what the ripple effect through the supplier community will be. Might be good for Ford for a bit, but not good for the country.
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If bankruptcy can get GM out of labor contracts, what keeps them from getting out of warrantee contracts? I can see this helping Ford out a lot, at least in the short run. GM will kill their consumer confidence.
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I wouldn't be surprised that 1) they quickly renegotiate contracts to a much lower amount and 2) that doesn't really help their "cost structure" or profitability.
I am no fan of unions. But in my opinion, the Big 3 have cut/reduced/marginalized them to the point where its hard to blame them for much at this point.
It seems that they only what to build and sell big vehicles. It's great when that's what the world wants, but a terrible overall strategy.
I am no fan of unions. But in my opinion, the Big 3 have cut/reduced/marginalized them to the point where its hard to blame them for much at this point.
It seems that they only what to build and sell big vehicles. It's great when that's what the world wants, but a terrible overall strategy.
Hotshot
Joined: Feb 2003
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From: Long Beach, Ms.
Why is this in the '09 forum? These types of threads belong in the "General Automotive Forum"; https://www.ford-trucks.com/forums/forum135/
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US and Canadian gummints are going to back Gm warraties during bankruptcy.
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From: Kzoo
Why is this in the '09 forum? These types of threads belong in the "General Automotive Forum"; https://www.ford-trucks.com/forums/forum135/
Post Fiend
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It will help ford to a degree. People are leary when they here bankruptcy mentioned. Ford will appear to be more stable and will drawl some of GM's customers. Also the goverment will have control over GM, where as ford is free to do whatever they see fit for thier company. GM has to answer to the goverment on every move they make. The goverment does a **** poor job of running the country, much less an auto company. However, I believe GM will survive as a much smaller company and do well in the long run. I believe chrysler is the one that is finished for all practicle purposes. I think jeep will eventually will be sold off. The dodge name may live on in some shape.