GM Posts Video on Youtube
- Thread starter Amoreena
- Start date
ViviTheMage
Lifer
Originally posted by: DisgruntledVirus
Wow posted by a lurker none the less
under 3 posts/yr
I probably should have posted this in politics and news.
mb
Lifer
- Jun 27, 2004
- 10,233
- 2
- 71
If GM goes under, 3 million US workers will lose their jobs and the government will lose $156b in tax revenue over the next 3 years vs spending $25b today to bail them out. And we'd be screwed when world war 3 comes around because we wouldn't have our own large manufacturing base anymore.
Linflas
Lifer
- Jan 30, 2001
- 15,395
- 78
- 91
And if they declare bankruptcy, restructure and throw out their onerous union contracts, and come out the other side leaner and much more competitive? It is not just a simple choice of pissing a bunch of taxpayer money down the GM hole or they go away completely
"610,000 workers are employed by suppliers to the U.S. auto industry earning an annual payroll of $54 billion in 2007."
$54000000000 / 610000 = $88524.59 average salary
Gee, I wonder why, among other reasons, there is a loss of profits year after year?
A majority of unskilled labor shouldn't average higher than a salary many college educated people will see in their lives.
$54000000000 / 610000 = $88524.59 average salary
Gee, I wonder why, among other reasons, there is a loss of profits year after year?
A majority of unskilled labor shouldn't average higher than a salary many college educated people will see in their lives.
Queasy
Moderator<br>Console Gaming
- Aug 24, 2001
- 31,796
- 2
- 0
The problem is that if GM gets bailed out, then they are going to keep doing those things that got them in this position in the first place either by choice or by mandate. Everything from union medical and pension funds that add to the cost of cars to keeping 7,000 dealers across the US when its competitors Toyota and Honda have less than 1,500 each.
The Big Three have sold 5,579,352 cars this year to date. Yes, them disappearing would have a profound impact on Detroit and surround areas but no, if they disappeared and/or restructured the demand slack would be picked up Toyota/Honda/Nissan during the transitional phase, which all by the way have manufacturing plants in the United States that exclusively sell cars for the US domestic market... Suppliers, raw material providers would adjust to the new market conditions over time.
Evadman
Administrator Emeritus<br>Elite Member
- Feb 18, 2001
- 30,990
- 5
- 81
GM makes way too many bad decisions. Just because they are huge, doesn't mean we need to bail them out. They are a business, and they have (or are about to) fail. Other automakers can make the correct decisions, but they can not. As others have mentioned, they pay their workers too much for the product they manufacture. They also manufacture many products that are nearly identical, just under different brands. That raises cost, because you are splitting your manufacturing and marketing money.
Toyota (AFAIK) has 2 brands, Toyotas and Lexus. The vehicles are also (generally) substantially different between the 2 brands. Show me the difference between a GMC and a Chevy truck. Or the difference between an S10 Chevy and S15 GMC? It's a badge. But a bunch more manufacturing & marketing cost.
GM needs a major restructuring. Bankruptcy (Chapter 11) is probably the best option.
Toyota (AFAIK) has 2 brands, Toyotas and Lexus. The vehicles are also (generally) substantially different between the 2 brands. Show me the difference between a GMC and a Chevy truck. Or the difference between an S10 Chevy and S15 GMC? It's a badge. But a bunch more manufacturing & marketing cost.
GM needs a major restructuring. Bankruptcy (Chapter 11) is probably the best option.
Well, you'd like to think it's that easy, but there are huge problems with it.
Declare bankruptcy = high risk for HUGE loan = No money.
No money = no research and development = more cars with problems and no new selling points.
No money = suppliers don't get paid = you're low priority for suppliers = you are either waiting on parts or have to use cheaper inferior parts
No money = no/low advertising budgets = less sales
Thus, they are wanting a government bailout because the federal reserve is full of idiots who won't make them change a thing and they won't have to worry about getting a high-risk loan.
Asking American auto makers to "restructure" is like asking your grandparents to convert to metric. Think about that one.
I know labor unions have done alot for the American worker. We have the unions to thank for many of the labor laws we now have that prevent companies from taking advantage of their employees. Now however unions seem to be nothing but havens for lazy & ignorant people who want to get paid top dollar for doing as little as possible.
I still say the unions are killing the domestic auto industry.
I still say the unions are killing the domestic auto industry.
How about this, pull out on Iraq and save $10 billion per MONTH. Transfer that money to a bail out plan for GM where there is SOME chance of them recouping the money plus interest.
Ok, I don't know too much about this but I do know my math. So how would only $25B bail out GM when they still need to pay over $50B in tax per year?
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