GM told: Cut every salary

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,402
8,574
126
Originally posted by: dullard
Hmm, what would be the reason the Aztek isn't selling any more and the Avalanche is being redeisnged? Could it be crappy designers? Maybe Yreka was right...

the avalanche is being redesigned because it is based off the chevy suburban, which is also being redesigned. the only thing people didn't like about the avalanche was the plastic armor. once gm got rid of that it sold pretty well.
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: brxndxn
3. simplify the product line... Hummer, Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, Saab, Saturn, Opel.. holy sh!t.. Cut down on the number of models that causes inefficent inventory management

They got rid of Oldsmobile a few years ago. Every other brand has a distinct market, the most overlap being between Chevy and Pontiac and Chevy and GMC. Pontiac = sporty, GMC = "professional". They could probably combine them though.
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: brxndxn

4. raise quality.. wait.. RAISE QUALITY. There's no goddamn reason I should have had to pay $350 three separate times to fix a window motor in the same door on my car!

This here I think is the main thing keeping GM down. They need to change people's perceptions of them as unreliable cars. I'd rather buy an American car than a Japanese car any day of the week, but I won't do it unless I know it'll be as reliable as my Honda.
 

imported_Shivetya

Platinum Member
Jul 7, 2005
2,978
1
0
Sorry but salaries and benefits to floor workers are fair game. GM isn't and should not be required to pay the benefits it does if it cannot sustain itself. Some of the benefits being paid to GM employees are ludicrous. Yeah management gets big bucks and that needs to be cut but the only people with better retirement and such than GM employees are government employees.

Since when did the private sector (me, you, and all those others working for a living) become responsible for everyone else's retirement? Your already liable for any scheme a government union comes up with for retirement plans and your also on the hook should GM collapse because of its obligations

both management and union drove GM to this point, I saw it all before when people I grew up with lost jobs in steel mills because both sides were so damn greedy neither one budged until there was nothing left.

 

Looney

Lifer
Jun 13, 2000
21,938
5
0
Originally posted by: brxndxn
hey GM.. Here's some advice:

1. listen to Kirk Kerkorian and lower upper-level outrageous salaries; do not lower salaries from the average worker.. ie: do not slash regressively

2. allow those that will not stay due to lower salaries to leave. then, patch them up without hiring new people right away

3. simplify the product line... Hummer, Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, Saab, Saturn, Opel.. holy sh!t.. Cut down on the number of models that causes inefficent inventory management

4. raise quality.. wait.. RAISE QUALITY. There's no goddamn reason I should have had to pay $350 three separate times to fix a window motor in the same door on my car!

5. refine interiors. GM, your car interiors are sh1t. It's the worst thing about GM cars. Fix them. Make interiors that are at least as pleasant to be in as a 30-year old airline jet. If anything is made to look like metal, but is NOT metal, then get rid of it!

6. shake up the industry.. quit offering bottom cars with no options.. of course people want air conditioning, keyless entry, and every other goddamn feature - give it to them standard

7. advertise something other than Hummer. Hey GM, haven't you realized that buying a name brand so you can stick the name on crap doesn't mean it sells that crap by now?

8. tell the UAW to suck it. close some more plants if you have to

9. quit letting your upper-level employees blow corporate money on corporate excess like private jets

10. fire those responsible for GM's problems.. if an executive made a bad decision, fire his ass

11-100.. Improve the quality of your cars!

You're willing to close plants but not reduce the workers wages? I think if they had a say in it, they'll probably be willing to sacrifice a wage cut to still be employed.
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
0
Originally posted by: dwcal
Originally posted by: JulesMaximus
You're right. Those things cost all of about $100 for the part (that's the cost to the consumer) and it takes all of about 20 minutes to replace. Man, you got hosed.

Service and financing are the two big profit centers for dealers, even more so than car sales. GMAC is one of the most profitable parts of GM.


Actually GMAC might be the ONLY profitable arm of GM.

Fundamentally, GM has a crappy product line . . . produced by an underproductive workforce . . . preceded by an expensive group of old, sickly pensioners . . . for a corporation run by overpaid incompetents.

1) GM needs new leadership . . . plain and simple. I know it's the wrong forum but only a fool would allow failed leadership that CREATED a problem . . . be trusted with FIXING the problem.

2) Cut pay but give employees equity stakes in the company . . . preferably using the bloated options given to management. For the record, it's a mistake to take on the UAW. First, GM needs help from the UAW. Secondly, once Alito gets on the SC . . . he's gonna be in the majority that says, "sign a contract . . . honor a contract." Third, unlike the phoenix-like airline industry . . . bankruptcy will be the end of GM . . . not a new beginning.

3) Items 3 (Honda), 4 (Japanese luxo . . . usually), 5 (VW/Audi arguably MB), 6 (Acura), and 7 (every company with sense) from brxndxn's list.
 

dullard

Elite Member
May 21, 2001
26,063
4,711
126
Originally posted by: ElFenix
the only thing people didn't like about the avalanche was the plastic armor. once gm got rid of that it sold pretty well.
In other words, it was initially poorly designed by the designers.
Originally posted by: Ktulu
Please read the rest of my post :disgust:
Yes, they have problems with money and more R&D could be beneficial, but what does that have to do with initial poor designs?

 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
0
Originally posted by: Looney
Originally posted by: brxndxn
hey GM.. Here's some advice:

1. listen to Kirk Kerkorian and lower upper-level outrageous salaries; do not lower salaries from the average worker.. ie: do not slash regressively

2. allow those that will not stay due to lower salaries to leave. then, patch them up without hiring new people right away

3. simplify the product line... Hummer, Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, Saab, Saturn, Opel.. holy sh!t.. Cut down on the number of models that causes inefficent inventory management

4. raise quality.. wait.. RAISE QUALITY. There's no goddamn reason I should have had to pay $350 three separate times to fix a window motor in the same door on my car!

5. refine interiors. GM, your car interiors are sh1t. It's the worst thing about GM cars. Fix them. Make interiors that are at least as pleasant to be in as a 30-year old airline jet. If anything is made to look like metal, but is NOT metal, then get rid of it!

6. shake up the industry.. quit offering bottom cars with no options.. of course people want air conditioning, keyless entry, and every other goddamn feature - give it to them standard

7. advertise something other than Hummer. Hey GM, haven't you realized that buying a name brand so you can stick the name on crap doesn't mean it sells that crap by now?

8. tell the UAW to suck it. close some more plants if you have to

9. quit letting your upper-level employees blow corporate money on corporate excess like private jets

10. fire those responsible for GM's problems.. if an executive made a bad decision, fire his ass

11-100.. Improve the quality of your cars!

You're willing to close plants but not reduce the workers wages? I think if they had a say in it, they'll probably be willing to sacrifice a wage cut to still be employed.


Alot of the items are related. GM shouldn't close it's best quality factories but those factories should be charged with producing GM's best vehicles. Lower tier factories need to close b/c it doesn't make sense to keep them open. The subsequent reduction in capacity will produce a leaner, more efficient company but as a natural outcome . . . some people will indeed lose their jobs.

As GM regains it's footing and products gain marketshare, GM can open new "state of the art" facilities and provide new employment opportunities.
 

Ktulu

Diamond Member
Dec 16, 2000
4,354
0
0
Originally posted by: BaliBabyDoc
Fundamentally, GM has a crappy product line . . . produced by an underproductive workforce . . . preceded by an expensive group of old, sickly pensioners . . . for a corporation run by overpaid incompetents.

This pretty much sums up all of GM's problems
 

CVSiN

Diamond Member
Jul 19, 2004
9,289
1
0
Originally posted by: Ktulu
Originally posted by: BaliBabyDoc
Fundamentally, GM has a crappy product line . . . produced by an underproductive workforce . . . preceded by an expensive group of old, sickly pensioners . . . for a corporation run by overpaid incompetents.

This pretty much sums up all of GM's problems

QFT!
 

Ktulu

Diamond Member
Dec 16, 2000
4,354
0
0
Originally posted by: dullard
Originally posted by: ElFenix
the only thing people didn't like about the avalanche was the plastic armor. once gm got rid of that it sold pretty well.
In other words, it was initially poorly designed by the designers.
Originally posted by: Ktulu
Please read the rest of my post :disgust:
Yes, they have problems with money and more R&D could be beneficial, but what does that have to do with initial poor designs?

please tell me exactly was poorly designed on the Avalanche, if all you're going to say is that it's ugly and has plastic well then please take a look at the Honda Element and Ridgeline.
 

CraigRT

Lifer
Jun 16, 2000
31,440
5
0
Originally posted by: Ktulu
Originally posted by: dullard
Originally posted by: ElFenix
the only thing people didn't like about the avalanche was the plastic armor. once gm got rid of that it sold pretty well.
In other words, it was initially poorly designed by the designers.
Originally posted by: Ktulu
Please read the rest of my post :disgust:
Yes, they have problems with money and more R&D could be beneficial, but what does that have to do with initial poor designs?

please tell me exactly was poorly designed on the Avalanche, if all you're going to say is that it's ugly and has plastic well then please take a look at the Honda Element and Ridgeline.

It probably won't sell also like the Element and Ridgeline... I barely ever see ANY of the 3 around here to be honest... heh.
 

desy

Diamond Member
Jan 13, 2000
5,447
216
106
Not here in Sask an Element or Ridgeline is a rare vehicle indeed.
 

BriGy86

Diamond Member
Sep 10, 2004
4,537
1
91
what he should do is start selling all his stock in the company a some how screw everyone else

or they could out source
 

hellokeith

Golden Member
Nov 12, 2004
1,664
0
0
GM should:

1. Send out a bulk mail form letter to all retirees informing them of opportunities at the local MacDonalds, Burger King, and Taco Bell
2. If they haven't already frozen current pension plans, do it now. No more new pensions for anyone. Start a 401k with minimal matching funds (for the short term)
3. Send out a bulk mail form letter to all investors asking for money
4. Setup incentive programs for whole departments, dependent on customer satisfaction and quality ratings
5. Have a lottery and randomly fire 10-15% of their workforce, across the board. No one is safe.. no one.
 

SportSC4

Golden Member
Aug 29, 2002
1,152
0
0
Maybe they shouldn't concentrate on selling X number of cars per year and instead concentrate on improving the quality of their cars (which helps reduce warranty costs later) and profit margins
 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Originally posted by: Yreka
101. Flog the design team for the Avalanche, and Aztek mercilessly. Cut off their heads and put them on a pike in the front office to set an example to the rest of the employees.

I love my Avalanche.
 

brxndxn

Diamond Member
Apr 3, 2001
8,475
0
76
Originally posted by: Looney
Originally posted by: brxndxn
hey GM.. Here's some advice:

1. listen to Kirk Kerkorian and lower upper-level outrageous salaries; do not lower salaries from the average worker.. ie: do not slash regressively

2. allow those that will not stay due to lower salaries to leave. then, patch them up without hiring new people right away

3. simplify the product line... Hummer, Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, Saab, Saturn, Opel.. holy sh!t.. Cut down on the number of models that causes inefficent inventory management

4. raise quality.. wait.. RAISE QUALITY. There's no goddamn reason I should have had to pay $350 three separate times to fix a window motor in the same door on my car!

5. refine interiors. GM, your car interiors are sh1t. It's the worst thing about GM cars. Fix them. Make interiors that are at least as pleasant to be in as a 30-year old airline jet. If anything is made to look like metal, but is NOT metal, then get rid of it!

6. shake up the industry.. quit offering bottom cars with no options.. of course people want air conditioning, keyless entry, and every other goddamn feature - give it to them standard

7. advertise something other than Hummer. Hey GM, haven't you realized that buying a name brand so you can stick the name on crap doesn't mean it sells that crap by now?

8. tell the UAW to suck it. close some more plants if you have to

9. quit letting your upper-level employees blow corporate money on corporate excess like private jets

10. fire those responsible for GM's problems.. if an executive made a bad decision, fire his ass

11-100.. Improve the quality of your cars!

You're willing to close plants but not reduce the workers wages? I think if they had a say in it, they'll probably be willing to sacrifice a wage cut to still be employed.



NO! I'm saying worker wages should be reduced too... But right now, GM execs are getting bonuses just for staying.. We're talking like $28million each right now (from AC Delco), and worker cuts are the only ones that are talked about. Basically, I'm saying that if you're gonna slash a factory worker's paycheck by 20%, you damn well better slash the management and exec salaries by a HELL of a lot more than 20%.

It doesn't make any sense to me that a factory worker should go from $30k/year to 24k/year while an executive making $500k/year with stock options and bonuses gets only cut to $400k/year.. It's like a way to ensure that you lose the best factory workers and at the same time keep the worst management.

At some point, higher-up people in the company are going to need to realize that their responsibility is NOT to pay themselves more while running a company into the ground. Their responsibility is to maximize shareholder value... You do that by maximizing the value of the company and reducing excessive corporate pay.