they won't bail these guys out i'm afraid ... the powers to be want to break these unions and flood the market with labor to bring wages down is my greatest fear. hope not....
They have a conference call tomorrow - surprisingly, before the final bell. Should have some entertainment value...
GM is doing fine overseas? LOL...yeah...rightttttt! Gm is already reporting loss of market share to other makers like VW and Toyota in China. GM's ability to reinvent itself into a true, reliable, creative, carmaker is going to burn a hole in the US taxpayers pockets...all in the name of maintaining union workers employed. Hell, it took them almost a decade to come out wth a contender to the Ford,Mustang What a joke of a company...
UAW workers make $23/hr. That's not a lot of money. So I fail to to see why the union is the reason they're going to collapse. Don't Toyota, Honda, and Nissan have plants on US soil with UAW workers? They don't seem to be having these problems. What gives? It's simply a poorly managed company. Way too much white collar dead weight that needed to be gone a long time ago.
Absolutely. You should invest thinking that unions are not important. Ignore them, their workers barely make the minimum wage (if that). You'll clearly get what you deserve. Edit: OK, maybe you don't really know about the UAW, so let me fill you in. I've been on the line in different plants in metro Detroit - not working the line but doing various things around it. First off, it is a harsh, regimented society where power comes primarily from how many years you've been on the job. How good a job you do is completely irrelevant. That's trouble #1. Trouble #2 is jobs are protected. Long story short, I was involved in one example of unions protecting jobs where tech could deliver cheaper, better, faster solutions. Trouble #3 is pensions and insurance. Reasonable investors already know all about this trouble.
hell, roll out the big SUVs again that comes with a free bush/cheney '04 bumber sticker Tahoes,Yukons and the new model, the Yahoes gas under $2.00 again
More to the point - how can scapegoating the UAW be legit when Volkswagen manages to thrive with the much more entrenched Deutsch unions. IMO the lions share of blame goes directly on GM management. Call it a 2:1 split with the UAW, whose leadership is every bit as corrupt as GM senior management.
There you go, someone in the know points it out. In my mind, #1 and #2 are fatal flaws. It is like US decides not to improve its citizen's productivity and want to have a kickass military at the same time. Does not compute.
Maybe they'd be better off just doing healthcare and retirement programs instead of messing around with trying to build cars or trucks?