GM Facts and Fiction

[ANDY M]

Rob, maybe this will help explain why the Big 3 is getting beat up on: http://www.breitbart.tv/?p=224543

Corporate jets are a perq, not a must have item. When a CEO making $25 Million a year flys to DC in a corporate jet that runs $3000/hr to fly, plus what they pay to staff and service it, this does not make good press. Ford could easily find four guys at $2 million a year to do a better job, and save the difference.

[Chevy454]

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Corporate jets are a perq, not a must have item. When a CEO making $25 Million a year flys to DC in a corporate jet that runs $3000/hr to fly, plus what they pay to staff and service it, this does not make good press. Ford could easily find four guys at $2 million a year to do a better job, and save the difference.

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Hey, I'm in full agreement with that...but we're talking about 3 companies asking for a combined $25 billion...while the jokers who asked for *and recieved* the $750 billion are on what, lavish party/vacation number 3 now? Don't get me wrong, the Big3 could use a big dose of fat trimming, but it's looking to me like Congress couldn't care less about them going under, but were all about helping out their banking buddies...kinda makes a guy wonder in *whose* bank account is that $750 BILLION actually gonna end up in, huh?

[Chevy454]

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Is it true that there is close to a 40% difference in worker wages & bennies between GM and the ricers.


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I think CNN said this morning $73/hour @ GM (labor+legacy costs) as opposed to $48/hour @ Toyota...

[COPO 70 RS/Z28]

It would seem to me that a combination of labor, it's associated costs and over regulation are most likely the main culprits in placing the company in an uncompetitive situation. I agree that there has always been destructive competition coming from overseas but I think that the GM business model needs an overhaul. I think their products are up to snuff but the internal workings of the organization are most likely set in the twentieth not the twenty first century. If the business is to survive there will need to be give on both sides, labor and management. I think the UAW will need to come to the realization that moving forward new hires compensation will need to be placed on an even pace with the competition. Maybe the bail out if any should be focused on control of the existing health and pension plans in an attempt to place overhead at a more manageable rate. As workers retire etc. new workers would come in on a more competitive basis.

Even if you have a very good product if the cost is prohibitive your market will not be very dynamic.

Cost is Cost, if the products are reasonably equal cost is the only determining factor.

I have always thought that CR was biased towards imports.

[10/10_RS/Z28]

We as americans are going to have to swallow a tough pill soon. We can't "socialize" I mean save everybody. If they keep bailing everybody out a loaf of bread is going to cost $20 bucks soon. Let them go government backed ch. 11 and eliminate the union, the crazy $80 dollar average hourly wage, the $105,000 to eliminate somebody, the not being able to fire or layoff people, and the crazy retirement these goons are paying. Its time to get real people! I had a neighbor that worked for Ford and he would brag on how lazy his day was and how much he got paid. He said they read magazines and played cards while they would simply move parts around. I work to hard for my money to go to losers like that. See ya UAW, GM, Chrysler, & Ford!!!!

[Late BrakeU2]

And here ya have it " I'm o.k. with where i am"

If these guy's were on the Titanic they would be pushing women and children off the lifeboats-sure ain't Lee Iacoca!
(and in japan they would have already commited suicide for their disgrace)

11/19/08

The chief executives of General Motors Corp. (GM) and Ford Motor Co. (F) said Wednesday they wouldn't accept a $1 salary in exchange for government aid to their imperiled companies, as the head of the former Chrysler Corp. did a generation ago. During a hearing Wednesday, a member of the House Financial Services Committee told Rick Wagoner of GM and Alan Mulally of Ford that reducing their annual salaries to $1 would be an important symbolic gesture as they lobby for $25 billion in loans funded by tax dollars. Chrysler's Lee Iacocca worked for that wage when his company was bailed out by the government in the 1980s. "I'm willing to do what I've been doing," Wagoner said, saying he has already accepted a significant wage decrease and given up other forms of compensation. But he stopped short of saying he would accept a $1 salary. Mulally said: "I understand your point about the symbol. But I think, not just for me, but we're trying to fill a skilled and motivated team." Pressed on whether he would work for $1 a year, Mulally said, "I think I'm OK where I am." The chief executive of Chrysler LLC, Robert Nardelli, had said Tuesday he would be willing to work under that salary as a condition for a federal bailout package.

[1969l78]

Robert Nardelli can manage on $1 a year. I think he got $200 million when he left Home depot. Then they all flew to washington on there private jets. How much did that cost there companies. Fly coach on a normal airline to save thousands. These guys do not get it, I will not shed a tear if they go under. They did it to themselves, just my .02

[Salvatore]

Yes, you are right, something has to be done. A Union overhaul AFTER a management overhaul is a good thing! Everybody has to be accounted for. Its like saying every doctor is taking advantage of the system and every school teacher is doing the same. 10/10 RSZ do you think they (UAW Workers) get $80.00 an hour in the envelope for a 40 hour work week? I don't think so I believe its there whole package. Pensions and benefits were set up years and years ago when times were good. Why pay Union dues if there was not going to be a better way of life coming from your membership? They may now have to take a slight reduction in some benefits but its not the workers fault that their pensions were good for the last 25 years and now because of the economy they should not receive their check. The investments their pensions were in is the culprit. If Wall Street, Corporate greed and unfair trade practices were not prevelant we would not be talking about this. There are many Union workers that make $10-$12.00 an hour in this country. Not all make what you think they make because they are in the Union. Sam

[GREEN4SPDSS]

Thanks Sam I agree....Where I work is union. New hires get around 14 a hr and less healthcare. They are Slowly taking more and more away every contract. I was on Strike Last year. They treated us Like criminals.....Because we are Union.

[king_midas]

The true issue is that they have no plan for the money.

Say they get $25B by yelling loud enough... What do they do with it? They will still have all the problems that they had before they had the money; misguided products, union issues, etc... Giving them money now will not change their competitive position or their competitive environment-- It would just be good money chasing bad.

In reality, it's possible that the best thing that happens is that they go Ch. 11, forcing a house-cleaning and review of overall corporate policies/practices that has been needed for four decades.