GM to buy Chrysler

[ktang 34]

Not only is poor management, poor quality, and high union wages to blame......but one also need to add in the HUMONGEOUS pension and health benefits they have on the books. There is no way a company can continue when it pays out huge defined benefit plans to all the retirees, as well as cover all their health costs. It just cant work. The days of pensions are numbered. Company match 401ks will be next.

Actually the quality is still quite good on a lot of the models, though it's not popular to admit as much. Take someone off the street and put them in a brand new design and they would be hard pressed to tell you what the make and model is. Tell them it's a honda and they will love it, tell them they are in a ford and they'll criticize it.

I do agree that the pension issue is the biggest problem they have. I'mnot sure if they have the option of declaring chapter 11 and pushing the pension plan off to the PBGC or even walking away from it or if that provision is just available to those whose labor relations are controlled by the NLRA.

Since American cars are now seen as second-rate compared to imports, they have to be sold at a lower price (for similar features) or have extras (for similar pricing) to compete. This can't be done with the existing benefits and pensions on the books.

R&D can't save them quickly enough.

So... an alternative to Chadd's option is to re-negotiate the benefits and pension plans etc. with the unions. The unions could "save the day" and safeguard its members' jobs by allowing GM to be more competitive. The alternative would be that GM would go bankrupt, the retired workers get nothing, and the GM workers not picked up by the American-based Toyota, Honda, etc. plants become unemployed.

If GM could stay alive long enough it could become healthy again when proportionally more people start buying cars in Brazil, Russia, India, China, etc., so there might be a light at the end of the tunnel. So, in the short-term, I see an upcoming labour negotiation being the key to GM's future / continued existence.

[Rustpot 1]

And the UAW has shown time and again the only thing they'll negotiate for is increased pay and benefits. Even now, they're asking for more. When was it they went on strike, just a year ago when GM tried to cut benefits?

[Chadd 916]

And the UAW has shown time and again the only thing they'll negotiate for is increased pay and benefits. Even now, they're asking for more. When was it they went on strike, just a year ago when GM tried to cut benefits?

As one of the airline pilot unions used to say "full pay to the last day"

[jrhky36 1]

i think the ceos need to step forward and take major pay cuts to lead the way. found out the ceo of american axel got a 17million dollar bonus after the union accepted buy downs. oh and american axel was in chapter 11 at the time. if these ceo were to take pay cuts it would show the union that they were looking out for the good of the company.

why is it that congreee gave and keeps giving money to wall street and the banks with out making a big deal out of it. but when the big three come asking for help they (congress) make them(big 3) jump through hoops just so they can jump through more hoops. it aint right. my though is the congressmen don't want to vote on it b4 chistmass, beside some of them won't be returning, so why vote.

[JR Boucicaut 3803]

Because people have money in banks, and people have a choice of what car they are going to buy. That's why they're putting the conditions on it that they have to move forward with technology.

[ktang 34]

"UAW to defer payments"

A step in the right direction by the unions...

[Rustpot 1]

Finally. The amount of benefits and job security the UAW has/had is just ridiculous when you look at the number of jobs constantly cutting pension and trimming benefits for higher educated positions.

Unskilled laborers raking in 6-figures who expect their pay to remain or increase as the company crumbles is mind boggling. I've had conversations with Ford line workers and every time I walked away even more pissed and hot-headed on the subject.

[Spreedizzle 1]

After 2 out of the 3 getting to DC the first time in corporate jets.....and being BROW BEATEN brutally (MUCH deserved)......the execs are now driving there in hybrids as a publicity stunt. Greed and ignorance hath no shame.

[Chadd 916]

After 2 out of the 3 getting to DC the first time in corporate jets.....and being BROW BEATEN brutally (MUCH deserved)......the execs are now driving there in hybrids as a publicity stunt. Greed and ignorance hath no shame.

Hopefully they break down

[MLSman 22]

Hopefully they break down

Right behind Nationals Park...late at night.

[ktang 34]

Auto Bailout Dies in Senate

I thought the UAW would lower its wages, but they wouldn't...

[aliebe 0]

http://www.msnbc.msn.com/id/28214869/

Interest take on the bailout (that I hope never comes because it will go down as the biggest waist of money outside of Carl Pavano).

3 companies make products that americans don't want. These same 3 companies have ridiculous contracts with unions that make these cars that no one wants. Is $14 Billion dollars going to do anything to change any of this? NO FUCKING WAY!!!! Let them die. Just because it's not politcally wise to let them die, doesn't mean you should waste taxpayer money to do so.

If these 3 idiots are to survive, they must file bankruptcy! This is the only way to break the union and erode these glaciers into a smooth running river that can easily adjust and adapt to current market environments.

And for the record, I did not support the AIG, TARP or CITI bailouts.

[ktang 34]

So now Chrysler is owned by Fiat, and GM is in bankruptcy protection and needs more $billions from the US and Cdn governments to survive. Harper (Cdn PM) is saying that he has to protect the 10,000 GM jobs in Canada (Ontario) and the other 50,000 jobs in companies that supply GM. Barack is saying that he can't let GM fail.

Up to another $50 billion in bailouts?

Is this going to be a long, drawn-out end-game, or will a phoenix rise from the ashes?

Other thoughts:

Chrysler's Lee Iacoca had to give back his company car. "If you can find a better car, BUY IT!" - Iacoca's takeaway from his ads.

I don't know how much the media is trying to portray the union workers as greedy, but it seems like most soundbites of the workers have them bemoaning other people's not supporting their way of life.

[Neal 41]

How does Ford feel in all this? The taxpayers (including Ford) are basically financing Ford's competition.

Perhaps they should start advertising "Ford - the car so good your taxes don't have to help pay for it"

[ktang 34]

The US Nissan workers (they're non-unionized) that are doing well don't like all this financing of their competitors, either...

Obama says he wants the US investment in GM to be fast, but I'm afraid that it will be a long time before the US gov't can get out of GM.

Obama is forcing hyper fuel efficient standards on domestic cars; does this mean that consumers will have to buy foreign cars in order to get the power and size that they want?

[ktang 34]

I just saw the new GM advertising on TV. Not bad, but quite a lot of information compared to other ads; I wonder who is doing this ad campaign? The images are the usual cars moving around etc., but the voiceover narration hits points that I'm concerned about.