May be forced to shut down operations in North America.

http://news.yahoo.com/s/nm/20060331/...gm_delphi_dc_3

 

On the news this mourning, they said that if Delphi strikes, it will most certainly shut down 4 plants in Michigan, almost immediatley.

If GM goes bankrupt, watch out Ford, and every other automakers. Also, watch out anyone, and I do mean, anyone who has ever worked for GM, and uses them for your health care, and pension for retierment.

 

OK, I'm not expert in the intricies of the North American car market, but I would think that if GM stopped selling cars, then those people would start buying from other manufactuers. Since a lot of them probably have political reasons for not buying Asian or European cars, wouldn't a bunch of them end up in Fords?

Of course, it would be very tough on the NA economy since GM and thier supliers employ a heck of a lot of people, even after the layoffs.

Thoughts?

 

3 families on my street depend on GM for employment. I don't know how much it would help GM, with the world bein' a global economy and parts coming from all over the world for a "domestic" manufacturer, but I'd buy another Chevy if it meant savin' my neighbours jobs.

 

I read somewhere that back in the day, 1 in 6 jobs depended on the auto industry, wonder if thats gone up or down

 

GM ain't the only one having problems.....Ford's been in the red too.....almost as bad, only GM is bigger. They both make great vehicles, but come on.....the labor and retirement costs are KILLING them.......I'm all for pensions, etc., but 75% to 90% of highest salary for a pension whilst not paying anything into it?.....Free health care (or so low as not to matter) for ALL present and retired workers?.......Jeez...even retired military don't have it that good....I'm not going to get into an argument over Unions, etc., but there comes a time when all of a sudden, you have a couple of million retirees (not to mention the hundreds of thousands currently working) and the costs of this CAN'T be met.......It's been said that the last $2000 or $3000 of a GM vehicle is added to cover these labor costs. Nothing comes free, and a reasonable medium between the company and the Union has to be met.

p.s. I'm not taking a side on the Company vs. the Union debate (such as there is)....after all, GM agreed to these pensions and medical coverages (as did Ford)...but as usual, short-sightedness seems to take the front seat.

 

I don't know if you have to go as far as buying a GM to save a neighbor's job. It wouldn't help anyway. The damage has long since been done.

Besides, GM's North American volume has to be taken up by someone(s). Granted, that doesn't mean that Kia, Hyundai, Ford, etc, will add a GM plant to their holdings the very next day after this theoretical GM shutdown, but if GM owners keep coming back for newer vehicles with bad trannies and crummy intake manifold gasket designs...they can't be that picky.

I have confindence even if a GM or Ford went down, those workers who actually are meaningful to operations will get on somewhere eventually.

Even the guy who made whips for horse drawn carriages got on somewhere after the automobile first came along!

If GM made what I (and many others) wanted--another bargain Camaroish offering, a Rangeresque sized diesel truck, maybe a full-sized RWD sedan (A real Impala SS), then things might be different. Ooooh, what might have been.

Survival of the fittest. What a concept.

 

I can't believe I read that last post. We're witnessing the destruction of the American manufacturing economy as we know it- I'm not quite so sanguine about it.

 

I'm with you, Polarbear......I want to see the "Big 3" remain the "Big 3".....Obviously, adjustments have to be made reference the labor costs, efficiency, etc.....if for no other reason than to better compete with the lower cost (production) of the Asian makes....GM appears to be on the (long) path with this (buyouts, scrapping the pension system in favor of 401-Ks, more of a medical co-pay), but it's probably gonna be bloody.

p.s. There is no "free" anything, as GM is realizing (I'm sure they've been realizing it for awhile, but it's now become a crisis). As a police officer, I'm told that I have one of the better pensions and retirements, but even here, the most I can get is about 50% of my highest salary...and I've been forking over 6% of my salary every week (as does every other member), and the city forks over another 5%, to fund the general retirement system. Regarding free health care after retiring?.........NOT! Thank God we also have a 401-K which I throw as much money at as possible. Please....everyone out there, take heed in what's happening at GM and elsewhere (they threw thousands out of work in nearby Kannapolis, NC a few years ago when Pillowtex went under)......DO AS MUCH AS YOU CAN AS EARLY AS YOU CAN TO FIX YOUR FUTURE!!!!!!!......Big Brother ain't always gonna be out there to pay for stuff, and hundreds of thousands of workers have been finding this out the hard way.

Alright...I just jumped off of the soapbox....someone else can jump on........

 

\

Well we have the Unions to blame for that. Greedy whiny groubing little money hungry. Well you see my point.

 

You're probably right but it's the thought that counts.

 

I have a question,

Did people just close their eyes when the airline industry filed bankruptcy right and left for the past 10 years?

GM, or Ford for that matter (let me make this big) will not go out of buisness!

They will file for bankruptcy if it comes to that. They will drop their pension payments, and their health benefits. You'll probably see some massive UAW strikes, but their are more than enough people who will cross picket lines for a good job like that. Sooner or later the skilled workers will break and go back to work.

The federal government isn't going to see two of Americas institutions like Ford and GM go under, it will never happen.

Is it sad to see those companies have to do that, don't get me wrong. But somethings got to change to make them profitiable again. Now if they keep making a lot of cars and trucks people don't want, then bankruptcy won't help, but regardless, thats whats going to happen first.

 

Currently GM has too much cash to file bankruptcy, but the union at Delphi could change that. Bankruptcy will not put GM out of business, it may be its salvation.
Dono

 

I'm sure it will probably be its salvation. I only said that it could go bad if they continue to build cars and trucks people don't want after a bankruptcy.

 

I know that this is an old post, but I've got to add this. Building and selling cars that people want has nothing to do with their current problems (or it just has a little to do with it)......GM is losing money because of deals they made with the Unions way-back- when regarding salaries, pensions, health care for current employees and retirees, full pay (indefinite) for non-producing workers, etc.. This is BILLIONS of dollars per year, and how many cars would they have to manufacture and sell to make up billions of dollars?....Their recent "employee-discount-for-everyone" made a noticeable jump in their sales (involving percentage points) and prompted other car makers to follow suit, but it didn't put a dent into their current problems with mandatory payouts (pensions, health care, etc.) and their increasing deficits. A sea-change has to occur in the way they do business before any long-term fix can be realized. Labor costs, labor costs, labor costs, labor costs.........(ad infinitum!).....