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View Full Version : GM headed the way of Solyndra



Hubie
07-27-2012, 04:02 PM
It's taking longer because they got more money, but the numbers don't lie:

http://directorblue.blogspot.com/2012/07/my-advice-to-gm-retirees-take-lump-sum.html


General Motors, because of its White House-inspired abrogation of bankruptcy law, never really fixed its various contract problems with the unions. Its costs remain too high to be truly competitive and it has bound itself to the federal government -- in classic, crony-capitalistic style -- to produce useless electric paperweights like the Chevy Volt.

The result is as you might expect. GM's stock price continues to slide while its accounting skulduggery escalates to paper over the shortfalls.

I predict Obama will just throw more money at them.

m00
07-27-2012, 04:08 PM
It's taking longer because they got more money, but the numbers don't lie:

http://directorblue.blogspot.com/2012/07/my-advice-to-gm-retirees-take-lump-sum.html



I predict Obama will just throw more money at them.

Haven't you heard? The bailouts failed because there wasn't enough money there, due to Republican obstructionism.

LukeEDay
07-27-2012, 04:16 PM
That is the thing. The bailout was to pay off the unions, not fix the problem - And obama claims that it was a great feat. It was nothing but a waste of my tax money!

Gina
07-28-2012, 10:28 AM
Until the unions either drop dead or fix the retirement, health ins, etc.. it will be almost impossible to maintain a bloated monstrosity like GM.

Unreconstructed Reb
07-28-2012, 10:46 AM
0vomit runs a business like he's ran this country; into the ground.

But at least the union thugs are happy........

AmPat
07-28-2012, 12:18 PM
Let them fail (officially), restructure and move everything to the south. AL and TN would be great choices. No benefits or favoritism to previous workers. No Unions to screw up the works. Start again with new workers and a reasonable compensation and retirement plan. Had they done this, they wouldn't have to move to China.

LukeEDay
07-28-2012, 12:27 PM
Let them fail (officially), restructure and move everything to the south. AL and TN would be great choices. No benefits or favoritism to previous workers. No Unions to screw up the works. Start again with new workers and a reasonable compensation and retirement plan. Had they done this, they wouldn't have to move to China.

If they tried to move to a right to work state, you would see another Boeing incident. And this time, I think obama and the ACLU would join Holder in the lawsuit.

TVDOC
07-28-2012, 01:23 PM
GM has been on the road to bankruptcy for over 25 years......part of it is the unions, but not all of it. GM's management philosophy is a good part of the problem. Four decades ago the company was run by engineers and innovators, individuals that were well-schooled in the "Ed Cole" mentality that the entire focus of the company should be building the best "value" and most leading-edge products possible. Market share was the driving force behind the companies entire operations. At that point in its history GM had a total market share (US) of 66%.......so large that the government considered breaking them up as a "monopoly". "Build the best value and quality product possible and the profits will follow" was the essence of operations during that period.

Then the senior management focus changed.......instead of engineers and designers running the company, the board decided that it should be run by accountants and MBA's.........the result was that product innovation and leadership.......market focus......ceased, and the watchword became "build it cheaper"......instead of being driven by market share, it became driven by the current price of the companies shares and the quarterly earnings report. It ceased to be a auto manufacturer and attempted to become a global conglomerate, involving itself in many activities that it didn't have a clue as to how to succeed.

Although GM is a much smaller company today that it was in its hayday, it continues to be managed by the same shot-sighted management philosophy, (complicated by government involvement and meddling) and as a result of that I'd give it five years max before it completely collapses.

The Chevrolet "Volt" is a good example of such folly.......the "Volt" was never intended to become a production car........it was built as a prototype for the 2005 Detroit (and New York) Auto Shows......strictly a "concept car". Those who designed it knew that it was totally impractical, and not suitable for the market. It was just an "idea" for the greenies to ohh and ahh over. Then along came Obama and the rest is readily apparent. Before you spend millions tooling a plant and going into production on a vehicle, you damn well better know for certain that there is a market out there that is willing to buy it in the quantities (and at the price) that you are prepared to produce.......absolutely none of this was done with the "Volt".......which is why its plant is sitting idle most of the time now.......

GM is also tethered to an antiquated system of assembly plants and production facilities, and many divisions that formerly produced key components (and ideas) had to be sold off, forcing them to purchase these components on the outside at higher prices......they lost control of their supply chain, and with it control of their profit structure........they don't have the financial resources to correct this, and are therefore doomed.......eventually.......it can't all be laid at the feet of the UAW.

Long ago someone provided some sage advice......"stick to your knitting"........GM should have heeded this simple advice.

doc.

Odysseus
07-28-2012, 02:37 PM
That is the thing. The bailout was to pay off the unions, not fix the problem - And obama claims that it was a great feat. It was nothing but a waste of my tax money!

No, it wasn't a waste of tax money, it was a theft of tax money. It was stolen through fraud and laundered to Obama's union cronies. Waste would have been negligence or incompetence, but this was a crime.

Starbuck
07-28-2012, 03:41 PM
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosettings=1&symb=GM&uf=0&type=2&size=2&sid=5310637&style=320&freq=1&entitlementtoken=0c33378313484ba9b46b8e24ded87dd6&time=9&rand=1347661369&compidx=aaaaa%3a0&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=335&width=579&mocktick=1
2 year chart of GM, showing from its reorganization. In order for us to get our money out the stock will have to return to over 40$/share, which is about what we paid. Doesn't look likely.

But still, the average guy on the street will tell you that Obama turned GM around. And he knows that is true because the news flashed Obama on the screen telling everyone it was so. And that is all the average guy needs to know.
We may not survive Mr Average. He has become too poorly informed.:blue:

LukeEDay
07-28-2012, 10:03 PM
No, it wasn't a waste of tax money, it was a theft of tax money. It was stolen through fraud and laundered to Obama's union cronies. Waste would have been negligence or incompetence, but this was a crime.

Yes, it was a theft. I agree.

Apache
07-28-2012, 10:31 PM
I used to be Mr. GM in my family, but let's face it, GM has produced nothing but crap since the late '70's. Their R and D dept. has thrown junk on our highways. They refuse to see future trends until they're caught by the short hairs AND THEN they cobble together the Vega, the Chevette, the Nova II and the Volt hoping to impress... ????


No, unless GM has a MAJOR shake-up, they won't change and should go the way of the dinosuar...


my two cents :single_eye:

Retread
07-30-2012, 08:14 PM
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http://www.youtube.com/watch?v=avLKiWi71cE

AmPat
07-30-2012, 10:11 PM
No, it wasn't a waste of tax money, it was a theft of tax money. It was stolen through fraud and laundered to Obama's union cronies. Waste would have been negligence or incompetence, but this was a crime.
I suspect that negligence and incompetence were widely known and practiced also. :friendly_wink:

RobJohnson
07-31-2012, 06:37 AM
Let them fail (officially), restructure and move everything to the south. AL and TN would be great choices. No benefits or favoritism to previous workers. No Unions to screw up the works. Start again with new workers and a reasonable compensation and retirement plan. Had they done this, they wouldn't have to move to China.


Case-IH did this after the merge with New Holland. They moved to Nebraska and left the UAW behind. I hear they are doing pretty good...

RobJohnson
07-31-2012, 06:39 AM
I wonder how many of those GM vehicles are made in Mexico and Canada? Did we help out those nations when we bailed out GM but keeping their people employed?