General Motors to cut 12% of U.S. workforce

[ericlp]

http://www.marketwatch.com/new...12-us/story.aspx?guid={CD9419A5-F3F3-440B-AFBE-86CDA28ECFDF}&dist=msr_8

In total, the plan calls for the reduction of 10,000 salaried employees from GM's global workforce, bringing the number down from about 73,000 white-collar workers to 63,000.
The bulk of the U.S. job cuts will occur before May 1. Those remaining are likely to see a 3% to 7% reduction in pay for the rest of the year, while executives face a 10% salary cut, the automaker said.
The auto industry is facing its worst market in decades, as consumers tighten their budgets during an economic downturn that has already seen the loss of nearly 3 million jobs, pushing the unemployment rate to its highest level since 1992.

While we wait around for congress to do something. There goes another 3,400 jobs.

This is only starting to get interesting. From Global warming to a Global Depression.

A working link -

http://tinyurl.com/adjbeh

 

[StageLeft]

I sure am surprised. I was sure that after the bailout GM would get back on the road to kicking ass and taking names.

 

[dphantom]

MI is already a basket case. This is only getting worse.

 

[rudder]

Originally posted by: ericlp


While we wait around for congress to do something. There goes another 3,400 jobs.

What would you have congress do? Keep funneling taxpayer money to this company to pay people to not make cars? It is a bloated company. And people don't need to lease a new car every two years.

We are going to have to adjust in this country and this is just part of the pain. Hell my dad bought his first new car when I graduated high school. After this recession I bet a lot of priorities will be reorganized....having two $40,000 SUV in the driveway won't be one of them.

 

[Cattlegod]

We have this rumor going around at ford that Mulally wanted to axe 30% in jan instead of the 10% we just let go. I guess consultants said that was a bad idea and said to spread it out over the year. So the rumor is another 10% cut at Ford in April and then another 10% cut in June.

 

[ericlp]

Well, maybe we could get a bill to put some people back to work to buy a car. Dunno, maybe I'm too positive about this situation. But, it's worth a shot, no?

I'm willing to give Obama a chance to see if he can make a difference.

 

[StageLeft]

Originally posted by: rudder

Originally posted by: ericlp


While we wait around for congress to do something. There goes another 3,400 jobs.

What would you have congress do? Keep funneling taxpayer money to this company to pay people to not make cars? It is a bloated company. And people don't need to lease a new car every two years.

We are going to have to adjust in this country and this is just part of the pain. Hell my dad bought his first new car when I graduated high school. After this recession I bet a lot of priorities will be reorganized....having two $40,000 SUV in the driveway won't be one of them.

It's everybody's God-given right to have a $30k SUV (at least) right out of college and then upgrade to a 3-series two years later. Didn't you get the memo?

 

[SP33Demon]

GM isn't selling cars, nobody is. Even with the "bailout" loan I don't see how this company will survive.

 

[ElFenix]

so much for the argument that union labor makes all the sacrifices

 

[RichardE]

LOL

Yeah, I wonder if that one billion sent to Brazil could have kept these jobs.

Keep pushing this stimulus guys, 3rd bailouts the charm right?

 

[Squisher]

Originally posted by: ElFenix
so much for the argument that union labor makes all the sacrifices

What has been done to the first couple of levels of management/salaried workers in the auto industry over the last 20 years is far from pretty. They get screwed first before anybody.

I once told my boss it wasn't any fun anymore fucking him in the ass because I had to wait in such a long line.

 

[Skitzer]

Originally posted by: ericlp
Well, maybe we could get a bill to put some people back to work to buy a car. Dunno, maybe I'm too positive about this situation. But, it's worth a shot, no?

I'm willing to give Obama a chance to see if he can make a difference.

I don't think putting people back to work will solve the auto makers problems. People are not buying new autos right now ...... even those of us still working. Hell, I was in the market for a new truck up until a few months ago but have now decided to just fix the one I have and keep driving it a few more years, (it is 7 years old now).

 

[WaTaGuMp]

So what happens next month when they cant pay back the money they said they would?

 

[MikeMike]

Originally posted by: WaTaGuMp
So what happens next month when they cant pay back the money they said they would?

uh... they just have to prove viability by next week... not pay back the loan...

 

[WaTaGuMp]

Originally posted by: MIKEMIKE

Originally posted by: WaTaGuMp
So what happens next month when they cant pay back the money they said they would?

uh... they just have to prove viability by next week... not pay back the loan...

The loan wasn't due in March?

 

[StageLeft]

Originally posted by: WaTaGuMp

Originally posted by: MIKEMIKE

Originally posted by: WaTaGuMp
So what happens next month when they cant pay back the money they said they would?

uh... they just have to prove viability by next week... not pay back the loan...

The loan wasn't due in March?

No, they have to prove that they're viable, which of course they cannot possibly do except by a very vague standard that will ebb and flow its way into whatever they say. There's no way the money is gonna run dry now no matter what they say. Government is more suceptible to the sunk cost fallacy (throwing good money after bad, as if more money will atone or money already lost) than most.

 

[Chunkee]

i sure would like to see good deals...the prices are still somewhat high..if they are not selling...can they not just slash to get the inventory moving..regain the trust...do something...that benefits and stimulates the consumer rather than running around with their fucking hand out?

 

[Squisher]

Originally posted by: Skoorb

Originally posted by: WaTaGuMp

Originally posted by: MIKEMIKE

Originally posted by: WaTaGuMp
So what happens next month when they cant pay back the money they said they would?

uh... they just have to prove viability by next week... not pay back the loan...

The loan wasn't due in March?

No, they have to prove that they're viable, which of course they cannot possibly do except by a very vague standard that will ebb and flow its way into whatever they say. There's no way the money is gonna run dry now no matter what they say. Government is more suceptible to the sunk cost fallacy (throwing good money after bad, as if more money will atone or money already lost) than most.

As of a couple of weeks ago the UAW and GM hadn't even started discussions about any concessions/renegotiations. I found this very surprising. Labor negotiations usually grind out at a snail's pace even when under duress. In GM's proposal I'm sure there will be their expectations of Labor and if Labor isn't onboard and voices this, the house of cards could come tumbling down.

The way I see it, the biggest gorilla in the room is VEBA. If GM had the cash for that most of their problems would seem manageable. With healthcare being a Democratic touchstone this might be where the bulk of the money is spent.

 

[Nemesis 1]

I can't believe the leadership of this country doesn't understand. The need to build UP industry. I am just amazed anyone can believe a service economy is anything but a paper dragon.

Thats what this stimulus package should be about. Every dime should go to modernizing our factories. and alternit fuels for energy. That will people people tp work . Americans. Not Chinies/ German or any other nation. Let us not forget we are Americans First. It was our cunsumming that made China strong. We can shut that down anytime we want. I don't care about the Brits. or the French or the Russians.

Lets rebuild AMERICA. Its Our Money . Its TAX payer Money. The only thing that will work is going back to the Model of America Pre 70's . As far as the economy goes. Than Watch America Grow. If the rest of the world don't want our products fine.

Sure big multi-nationals would be hurt. Big deal . Don't let the door hit ya in the ass on the way out. 10 better managed start ups will take your place. If we can bring the low income up . America would be a self feeding beast . That needs zero help from the rest of the World.

 

[Triumph]

Originally posted by: ericlp
http://www.marketwatch.com/new...12-us/story.aspx?guid={CD9419A5-F3F3-440B-AFBE-86CDA28ECFDF}&dist=msr_8

In total, the plan calls for the reduction of 10,000 salaried employees from GM's global workforce, bringing the number down from about 73,000 white-collar workers to 63,000.
The bulk of the U.S. job cuts will occur before May 1. Those remaining are likely to see a 3% to 7% reduction in pay for the rest of the year, while executives face a 10% salary cut, the automaker said.
The auto industry is facing its worst market in decades, as consumers tighten their budgets during an economic downturn that has already seen the loss of nearly 3 million jobs, pushing the unemployment rate to its highest level since 1992.

While we wait around for congress to do something. There goes another 3,400 jobs.

This is only starting to get interesting. From Global warming to a Global Depression.

A working link -

http://tinyurl.com/adjbeh

Sounds like just the right thing for GM, and something they probably should have done years ago.

 

[CPA]

Originally posted by: Nemesis 1
I can't believe the leadership of this country doesn't understand. The need to build UP industry. I am just amazed anyone can believe a service economy is anything but a paper dragon.

Thats what this stimulus package should be about. Every dime should go to modernizing our factories. and alternit fuels for energy. That will people people tp work . Americans. Not Chinies/ German or any other nation. Let us not forget we are Americans First. It was our cunsumming that made China strong. We can shut that down anytime we want. I don't care about the Brits. or the French or the Russians.

Lets rebuild AMERICA. Its Our Money . Its TAX payer Money. The only thing that will work is going back to the Model of America Pre 70's . As far as the economy goes. Than Watch America Grow. If the rest of the world don't want our products fine.

Sure big multi-nationals would be hurt. Big deal . Don't let the door hit ya in the ass on the way out. 10 better managed start ups will take your place. If we can bring the low income up . America would be a self feeding beast . That needs zero help from the rest of the World.

I guess you weren't happy when you heard that GM is spending $1B of it's bailout to rivalitize plants in Brazil, huh?

Also, I heard that this cut was a result of requirements of the TARP. Can anyone verify that?

 

[dullard]

Originally posted by: Nemesis 1
I can't believe the leadership of this country doesn't understand. The need to build UP industry. I am just amazed anyone can believe a service economy is anything but a paper dragon.

Thats what this stimulus package should be about. Every dime should go to modernizing our factories. and alternit fuels for energy. That will people people tp work . Americans. Not Chinies/ German or any other nation. Let us not forget we are Americans First. It was our cunsumming that made China strong. We can shut that down anytime we want. I don't care about the Brits. or the French or the Russians.

Lets rebuild AMERICA. Its Our Money . Its TAX payer Money. The only thing that will work is going back to the Model of America Pre 70's . As far as the economy goes. Than Watch America Grow. If the rest of the world don't want our products fine.

Sure big multi-nationals would be hurt. Big deal . Don't let the door hit ya in the ass on the way out. 10 better managed start ups will take your place. If we can bring the low income up . America would be a self feeding beast . That needs zero help from the rest of the World.

I have to disagree with much of what you wrote. Building more cars when we have a glut of unsold cars won't help the auto industry. Building more houses when we have a glut of unsold houses won't help the housing industry (which dwarfs the auto industry and is in far worse shape by the way). Countries around the world who are more focussed on manufacturing than the US are feeling this recession far more than the US.

Economies are ultimately ruled by supply and demand. Our supply side is just fine, boosting supply of these manufactured goods only makes things worse. What we have is a systematic lack of demand. The few jobs created here and there in your post won't do any measurable thing for demand. Heck, modernizing the factories as you suggest will simply mean fewer jobs now that equipment will do the work for them.

We have overspent for years. Now we have to pay the consequences. Demand must take a PERMANENT 7% cut just to break even with what we can afford and it'll temporarilly be cut more to account for the excess purchasing we made in the last decade or so. The only stimulus that will work is stimulus that increases demand, your proposed stimulus to increase supply of manufactured goods would be ill-fated.

You are correct about bringing the low income up though. The more money in the poor's hands, the more they spend. The more they spend, the more revenue companies have. The more revenue they have, the more they can employ and pay the poor. Bailouts which end up giving billions in bonuses to top management won't help. Bailouts that help the poor - education, retraining, paying moving expenses, job placement, new job creation, tax cuts, etc - are what will do the most good.

 

[Falloutboy]

if the goverment wants to get the auto industry back on its feet, they should come up some kind of tax credit like there doing for homes. 4000 tax credit if you buy a new car from ford, gm or chrysler. sure its showing favoritism to the American automakers but who cares. I can't imagin the amount of cars gm and ford would move if that happend

 

[Acanthus]

Nissan is shedding 20,000, just hit the newswire today.

 

[Zebo]

nm