I Can't Believe it!!! A Democrate is grilling the Big 3 about thier perks.... ...During the House hearing Wednesday, Rep. Brad Sherman, D-Calif., asked the three auto chiefs seated at the witness table before him to raise their hands if they had come to Washington on commercial airliners. No hands went up. Then he asked if any planned to sell their corporate jets. Again, no hands went up. Sherman and Rep. Gary Ackerman, D-N.Y., told the auto executives they were having a hard time justifying to their constituents bailing out companies whose chiefs fly around in expensive private jets. Ackerman said there was "a delicious irony in seeing private jets flying into Washington D.C. and people coming off them with tin cups in their hands." Nuff said....CHAPTER 11.
Delphi Corporation (symbol DPHIQ.PK) is the parts division of General Motors. According to http://finance.yahoo.com/q/pr?s=DPHIQ.PK, management of Delphi Corporation declared bankruptcy October 2005, they appear to still be working and have about 169,000 employees. So part of GM - the parts division - is already in bankruptcy. I notice Ford stock price value decreased 25 % today to $ 1.26 / share. Ford may be closer to bankruptcy than GM.
I think they should declare bankruptcy, fire a bunch of union workers, restructure, make changes to the agreement that they have with remaining workers so that the company can be profitable moving forward. All the while keep the pressure on Congress so that they can get $ 25 billion to make hybrid or electric cars. Finally, attach a provision to any bailout that the company must fire the CEO and not give him a golden parachute. Just a good kick in the pants.
-------------------------------- I did not read the source you quoted but I will state this, GM helped bail out DPH Source link; http://www.theindychannel.com/money/5083189/detail.html "MANY QUESTIONS. For GM, the bankruptcy filing means the auto maker could be on the hook for up to $11 billion in retiree obligations if Delphi stops paying those benefits. GM believes the actual obligation may end up being less than that. As part of the 1999 spin-off agreement with the UAW, GM agreed to cover UAW pension and health-care benefits if Delphi suspended its retiree-benefit plans"
I disagree that demand will hold. You cannot do business with people who don't have any money. I do agree, though, that Romney may have a point about allowing the market to correct on its own, even if it means a depression. We have zero control over where foreign-owned manufacturers locate their factories.
Visteon Corporation (stock symbol VC) was once the parts division of Ford Motor Company. Nobody seems to be talking about Visteon but I notice VC stock price value decreased about 31 % today to USA $ 0.39 / share. Visteon may be another candidate for bankruptcy.
I heard on the radio here in Toronto Canada, from the head of the Unions up here that labor accounts for only 7% of GM's overhead! If the workers worked for FREE this would only lower overhead by 7% and therefore is not the problem at hand!!!!!!!!!! What do you say to that?????