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Latest Comments26 Comments
GM Bailout Would Be Agony for Taxpayers
On Nov 16 04:33 PM Lazaris wrote:
>
> Hey John,
> Do you think that after the UAW takes over the retiree health care,
> the wages go down to $14.00, and some benefits are taken away, that
> the price of that vehicle will go down one dime? Do you really think
> that a penny of all that cost savings is going to be passed on to
> the consumer? Dream on, all that cost savings will just go to more
> CEO pay and bonuses to management and to shareholders.
> But you will sure be happy to see those autoworkers take that huge
> pay cut won't you?
>
> On Nov 16 02:18 PM JohnL wrote:
GM Bailout Would Be Agony for Taxpayers
And what about that new Tundra pickup? $2 billion invested in the plant, way over budget. The poor Japanes manager who brought the Tundra to market 8 months late was fired back to Japan in disgrace. Then, they had three recalls on it in the first six months, including--like in the 70's--blown engines. Then, they had to slap $6000 rebates on them to get people to buy it. Now they have completely shut the plant down for 4 months because no one wants to buy the ugly thing.
Is this what you mean by Toyota efficiency? Or is it their plant in Indiana that is operating at 40% capacity because no one wants their minivan ot Highlander?
Your love for this really average company seems to not be based on facts.
On Nov 16 12:46 PM sportsmadness78 wrote:
> IXLR8 you dont have a case comparing Toyota with GM assembly and
> work ethics. GM does not even hold a candle to the efficiency of
> Toyota when it comes to auto assembly. GM has mis-managed its way
> to eventual shutdown and I dont give a damn. They caused their own
> misery. Remember the 70's. They produced Vega, Chevette, Monza ....
> cmon the company has no clue what the consumer wants when it comes
> to quality. Since the 70's Toyota still has the Corolla and Honda
> the Civic. So you see somebody has kept improving while the other
> became more ignorant.
GM Must Die
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GM Bailout Would Be Agony for Taxpayers
PS GM MUST be selling the vehicles that people want to buy.
No manufacturer (Ford or Chrysler) or assembler (Toyota, Honda, Nissan, Hyundai, Mercedes, BMW, Mazda, Mitsubishi) sells more vehicles than GM each year.
GM Bailout Would Be Agony for Taxpayers
Toyota has sut down its $2 Billion assembly plant where they assemble Tundra pick-ups. The new Lexus SUV's sales are down 50%. Seen the new Toyota Sequoia SUV? Me neither.
Now, there is even talk about Toyota dropping plans to assemble the Prius in the US. But, Benjamin says, Toyota is smart and GM is dumb.
Remember, Benjamin, GM employs more people in the US than all the imports combined.
If GM's labor costs are $73/hour, that's because they are paying the pensions and health care for 700,000 retirees and their families. GM's and Toyota's individual workers are paid approximately the same.
If you would prefer, cancel the pensions, and let them be funded by the Federal Pension Guarantee Corporation, which itself is $50 Billion underfunded to handle its present obligations.
I hope that Benjamin never needs a loan to pay for his house or car or to help his parents with their retirement or health care expenses.
.
Do the Automakers Deserve a Bail Out?
The most recent unfunded mandate from the Feds is estimated to cost the Big 3 about $100 Billion in just the next six years. To "help", the Feds agreed to 'loan' the Big 3 $25 Billion. (see the math here?)
So the government, representing the "common" folks should bailout GM and their compatriots--AND, AT THE SAME TIME--change some of the truly calamatous government regulations that have caused this mess. And remember, Nancy Pelosi has said that any aid to the automakers should come with strings, like no "golden parachutes".
Changes in the laws affecting the automaker should include:
1. Let the Big 3 shut down excess dealers and brands with no financial buyout (no golden parachutes).
Let the Big 3 get rid of the JOBS BANK and hourly employee buyouts (no golden parachutes).
Let the Big 3 get rid of the UAW.
Allow the Big 3 import small cars from low cost sources the same as the Japanese and Koreans do. NONE of these are is made in the US: Toyota (Yaris), Nissan (Versa), Kia (Rio), Hyundai (Excel) and Honda (Fit).
Also, anyone calling for the resignation of the Big 3 senior management without simultaneously calling for the resignation of the Union's Ron Gettlefinger and his leadership(?) team is deluded.
.
A Radical Solution for U.S. Automakers
Truly a "Kumbaya" article.
Maybe, the author could write another one about how to end child abuse or how to end world hunger. No details, just good feelings....
Auto Industry: In for a Penny, In for a Pound
How, John Slater, would you handle the UAW, given the Democrats that the UAW has bought and are likely to stay bought?
How would you handle the fact that state and federal law prohibit the manufacturers from closing ANY dealership, even the rotten ones that you know and hate?
How would you handle the fact that the federal government requires US automakers to build small cars in the zero-profit US while allowing your beloved Japanese to import the Yaris, Fit and Versa from low cost sources?
How would you handle the approximately 1 million people that the BIG 3 are covering for health care? Cut them off?
How would you handle the nearly 600,000 pensions being paid by the Big 3? Dump them on the Pension Benefit Guarantee Corp. which is already $50 Billion underfunded?
How would you handle the most recent federal fuel and environmental mandates which will cost the Big 3 approximately $100 billion to meet within the next six years? PS The government arranged $25 Billion in loans, maybe sometime in 2010. (See the math here?)
Sorry, John Slater. 200 M&A activities with a combined value of $3 billion doesn't even get you a seat at the table for a Big 3 solution.
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Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?
If this guy has a PhD, then I am Einstein.
The $73 is NOT the employee's income, it is the cost to the Company for each hourly employee. This cost includes wages, employment taxes, benefits, AND legacy costs--health care and pensions for up to 1 million people.
Now, if all the posters here wish to kill the pensions for the retirees, fine. The PBGP is already underfunded by about $50 billion, so another taxpayer funded bail out for the PBGP will be required.
Medicare is in crisis due to chronic underfunding. If these 1 million people migrate to Medicare, another taxpayer funded bail out will be required.
It's OK, though. Niot to worry. The Messiah will fix it by taxing the rich.
.
Ford Celebrates, GM Scratches Its Head
Also, it's a lot different buying a car assembled in America versus one made in America--engineering and manufacturing of components and the overall vehicle employ a lot more people than mere assembly.
Ford may wish to avoid unions if they could, but governments keep getting in the way. Should Ford raze all its factories in the states that require union membership to relocate to "right to work" states? What would be the short and long term cost of doing that?
Also, how does Ford get rid of its "excess" dealers when federal law prohibits them from closing ANY dealers, even including the lousy ones?
Ford Celebrates, GM Scratches Its Head
Now, the good news is that Ford will get something out of these guys, instead of just paying them to sit on their cans and play cards.
The bad news for the unions guys is that they will have to actually do some work in exchange for the money.
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Auto Industry Recovery Once Again Postponed
Simply put, if Congress in their dubious wisdom requires any entity to do something for the common good, they should BE REQUIRED to cover the costs with taxpayer funds since the taxpayers benefit from the increase in the common good.
Up until now, we have had to eat a multitude of unfunded mandates, the most offensive being the requirement to sort through a tax code that has more words than the Bible. And, if a mistake is made, it's assumed that you are guilty--penalties include fines and jail time. The total cost of congressional and administration regulation on automobiles is well above $8,000 per car. And the taxpayer is paying for that TWICE--first through taxes and once again in the purchase price.
It's high time that congress remembered who signs their checks.
Ford: Ripe for the (Bottom) Picking?
Say, Horacio, the union contract was ratified almost a year ago.
Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.
Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.
Ford: Ripe for the (Bottom) Picking?
Say, Horacio, the union contract was ratified almost a year ago.
Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.
Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.
Automakers: Seeking Billions from Uncle Sam
Very strange!
Same article as yesterday, but with a different author's by-line.