Posted on 12/06/2005 10:34:55 AM PST by Sonny M
DETROIT--Since mid-October, General Motors has announced plans to cease production at 12 North American manufacturing facilities and eliminate 30,000 jobs by 2008; trim $1 billion in net material costs in 2006; and, in cooperation with the United Automobile Workers, reduce GM's retiree health-care liabilities by $15 billion, or about 25%, for an annualized expense reduction of $3 billion.
The reason for these dramatic actions is no secret: GM has lost a lot of money in 2005, due to rapidly increasing health-care and raw-material costs, lower sales volumes and a weaker sales mix--essentially, we've sold fewer high-profit SUVs and more lower-profit cars. What is less clear is why things turned sour so fast for GM, as well as for other American auto makers and suppliers. To put it another way, why are so many foreign auto makers and suppliers doing well in the United States, while so many U.S.-based auto companies are not?
Despite public perception, the answer is not that foreign auto makers are more productive or offer better-quality or more fuel-efficient vehicles. In this year's Harbour Report, which measures manufacturing productivity, GM plants took three of the top five spots in North America, including first and second place. In the latest J.D. Power Initial Quality Study, GM's Buick and Cadillac ranked among the top five vehicle brands sold in America, ahead of nameplates like Toyota, Honda, Acura, Nissan, Infiniti and Mercedes-Benz. And GM offers more models that get over 30 miles per gallon (highway) than any other auto maker.
Mr. Wagoner is chairman and CEO of the General Motors Corp.
(Excerpt) Read more at opinionjournal.com ...
This idiot wants taxpayers to foot the bill for the stupid contracts his company made years ago.
Well, I never put my name to any "social contract", so I ain't paying for his "generosity".
To top it off, he wants some kind of protection so that he can pass his costs on to consumers, one way or the other.
What gall!
And have taxpayers pay him bonuses even when the company is losing money.
Whether the bailout is directly paid in cash or is paid indirectly is immaterial.
Go beg somewhere else, Wagoner.
It's all buggy whips, isn't it? Aren't cars pretty much obsolete?
I second that. Free market blues, man, or in other words: that's showbiz! GM makes clunky unattractive cars that not enough people want to buy, however highly the "experts" may rate them. Go build a better mousetrap and don't ask the government to be "nice" to you.
Yes, there are cheaper and more competitive means of transportation:
I guess you are one those people that don't think industry is over-regulated?
His appeal for curbing lawsuit abuse makes sense as it drives the cost of products both through higher medical costs and higher liability costs.
Of course, like immigration reform, no one in congress has the guts to do anything about it.
My advice to GM and Ford is to quit worrying about Japan and start worrying about China. In 20 years you'll be buying quality Chinese cars at Wal-Mart and then the show's really over.
Not that I have a problem with it. US automakers made a deal with the devil when they signed production over to the UAW and now the chickens have come home to roost.
Businesses that don't make money go bankrupt. That's the American way. We shouldn't coddle failure. If he wants endless corporate welfare he should relocate to France where they subsidize their failing industries.
GM's are, for sure.
U.S. auto makers are a failing industry? Perhaps if you read the entire article you would see where he doesn't want a bailout he just wants the playing field leveled. Competing with countries like Japan and Korea, who actually do subsidize their auto manufacturers, is almost impossible. Yet, every year they make and sell million of cars here in the U.S. How is that a failure?
I guess seeing American manufacturing disappear is a good thing to you?
Well, I never put my name to any "social contract", so I ain't paying for his "generosity".
To top it off, he wants some kind of protection so that he can pass his costs on to consumers, one way or the other.
The nerve of him--expecting us to pay extra because his workers don't want to live in huts and eat rice all day!
Then consumers will choose whomever passes along the lowest costs.
That said, GM has been one of the royal pains in fighting tax reform, so I have even more of a gripe with them.
Wagoner wants government run healthcare. I understand the unions have helped to kill GM and other American auto manufacturers, but I still believe the reason the American cars don't sell as well as those with foreign names is a perception issue. People intuitively believe foreign cars are better cars, and that's going to be a tough nut to crack.
Particularly when you're alienating people by recommending government run healthcare.
I think the auto-industry is over regulated and over litigated.
But other companies are still doing fine, including the japanese, especially the ones who actually build their cars in the United States.
I'd have more sympathy for GM if they weren't such trouble makers in fighting against tax reform, while playing the role of a mute when it comes to regulations (GM has no problems with the regulations, they view it as a barrier of entry for competitors), and they have really slacked off when it comes to tort reform by backing everyone who opposes tort reform.
Absolutly.
Imagine collecting his bonus and fat paychecks and wanting me to pay his workers.
If you want to pay them, go right ahead, I ain't paying for his stupidity (and greed).
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