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I do feel bad for the employees that will lose their jobs. Hopefully GM will come up with a buyout for those employees that are right on the edge of retirement, but the cutoff time will miss them by a hair. That will help a lot of them. Now, the thing that pisses me off is GM in the same breath said they will be moving their electric car production to China. That's not so much good business sense, but more like a high hardy F-you America. Thanks for the bailout, but adios......
Who cares what the CEOs make.
Go work 80 hours a week, flush your personal and family life away into oblivion and be a CEO.
What they make is relevant in the discussion about the profits of the company, their future plans, and the bottom line as to why they're moving their business out of the US.
Investing in Mexico and China while laying off American workers? Yeah, good move, GM. I understand corporations are in business to profit,
I am pretty free market, but even I see the need for competitive tariffs - 30% on every Chinese build vehicle - the same tariff they have in place for US cars sold there. We really don't need all those Chinese made Buicks and Volvos.
What they make is relevant in the discussion about the profits of the company, their future plans, and the bottom line as to why they're moving their business out of the US.
How ? Be specific.
Make sure you consider what that job actually entails.
What they make is relevant in the discussion about the profits of the company, their future plans, and the bottom line as to why they're moving their business out of the US.
As a company, they and their shareholders are free (and should be free) to pay their CEO whatever they think is going to be good for the company and future profits, up to and including paying the CEO a salary of 100% of the companies’ revenue. The market should be the determinant as to whether any company will be rewarded for their decisions on balancing officer salary vs. investment and employee compensation. We screwed up by interrupting that balance, and bailing them out and placing no strings on that money if we the people wanted conditions on that money.
To many pensions to pay with COLAS attached! The medical profession never takes cuts and we working stiffs get no respect just lay off slips . This is why i went in to my own business to get my share and i did!
I hope they also make the choice to invest profits in producing future cars that are as rugged and reliable as their Japanese competitors. In the big scheme of things, GM builds a decent car, but they can do much better.
Actually, they caught up to them close to two decades ago. The Asian car quality superiority is a myth. All of the surveys show that. GM is cost competitive with the competition and competes well on quality. In fact the whole industry doesn't really have any outliers any more. Even BMW and Mercedes have caught up.
Here is the 2018 Study showing the results on 3 year old cars.
Basically no matter which brand you choose of these three year old cars the number of failures per brand is either 1 or 2 per car.
GM is no different than most publicly held companies. Their loyalty is to the stockholders, not their employees. The bailout saved them from a bankruptcy they deserved like any company that can't perform. The banks and AIG are another story.
https://www.aol.com/article/finance/...dies/23602695/
I hope this isnt just talk...I think he has realized that the astronomical tax cuts for the large corporations have come around to bite him in the A$$
Obama was even worse...he allowed thousands of Salaried Delphi Employees to get screwed out of their full pension as taken over by the PBGC...with all the backroom deals approved by Obama, to make GM even healthier emerging from bankruptcy
Actually, they caught up to them close to two decades ago. The Asian car quality superiority is a myth. All of the surveys show that. GM is cost competitive with the competition and competes well on quality. In fact the whole industry doesn't really have any outliers any more. Even BMW and Mercedes have caught up.
Here is the 2018 Study showing the results on 3 year old cars.
Basically no matter which brand you choose of these three year old cars the number of failures per brand is either 1 or 2 per car.
Bill
I guess my wife is right. She has a 2009 Lexus that has never been to the dealer for anything other than oil changes and a set of front brake pads.
https://www.aol.com/article/finance/...dies/23602695/
I hope this isnt just talk...I think he has realized that the astronomical tax cuts for the large corporations have come around to bite him in the A$$
Obama was even worse...he allowed thousands of Salaried Delphi Employees to get screwed out of their full pension as taken over by the PBGC...with all the backroom deals approved by Obama, to make GM even healthier emerging from bankruptcy
He always talks a good story. We shall see if he actually does it.
GM is no different than most publicly held companies. Their loyalty is to the stockholders, not their employees. The bailout saved them from a bankruptcy they deserved like any company that can't perform. The banks and AIG are another story.
If GM had gone under..it would have a ripple effect on the economy..thousands would have gone on unemployment, supporting industries would have all but dried up, towns where GM mfg plants and associated supplier components plants were located would have dried up....GM knew it had the American economy by the *****...and the leaders of this country..politicians knew it would have been a catastrophic event for this country's economy
Agree completely. A month ago I took a trip from Chiggerbranch, MS where I live to Dallas and back. Got 29 on the entire trip which did include several days of in and around mileage while in Dallas. This being my first Corvette I was absolutely astounded at the mileage and it is better than my wife's 6 cylinder Toyota Avalon. Corvettes are an amazing piece of engineering.
At this point it has to be the best business decision by GM. Ford and others make the same decisions. You cannot keep plants going if the passenger cars being produced there are not selling in todays market. Of course if gas prices go back to $4 P/G, demand for passengers cars will be back and truck sales will decline a bit. It's a seesaw. The unfortunate thing is people that were working will now no longer be employed assembling cars. In the case of that nearby Toronto plant, since 1953. Very unfortunate for them and our employees in the US, especially at Christmas time.
The bigger picture ahead, or previews of coming attractions if you will, is electric vehicles and self driving vehicles are the very near future. That appears to include Corvettes IMHOP, based on GM CEO Barra to devote resources to electric/self driving. It will be a radical change and we don't like change like that do we? Think how that will further impact employment in the future. Best to go to school and become an expert at future job markets is all I can say for now.
I’ve watched the downward spiral of companies who cater to the short-term interests of the stock market too many times. Regardless of the wisdom involved in cutting jobs, the market rewards the behavior with huge (unwarranted) increases in stock price. High level managers make huge bonuses based on the unwarranted stock price increase. The CEO’s appear to be able to fool themselves into believing their actions are warranted and even business savvy, they numb themselves to the fact they are personally enjoying huge gains in personal wealth at the expense of others. Still, calculations for savings appear to be based on the foolish assumption that none of the laid off employees contributed anything prior to their layoffs (which is absurd). Further, it’s assumed that an employee in a low-cost country is just as efficient/effective as one in America; which has been proven to be a false assumption time after time. This entire effort has been repeated too many times in America, it's short sighted and eventually leads to the fall of the company (ask GE, DuPont, or a host of other companies).
GM is clumsy and their strategy is a trap CEO’s have fallen into far too often. Moving plants and jobs to cheap labor markets and then exporting the products back to the U.S. isn’t as popular as it was a few years ago. Does Mrs. Barra believe that keeping 15,000 jobs in Mexico (for example) while cutting 15,000 jobs in America (while closing 4 plants here as well) and maintaining 5 plants in Mexico, create any good will for American’s to continue buying their products? It doesn’t with me.
What about all the tax cuts G/M recently enjoyed? Their huge increase in earnings is applauded by G/M through reducing jobs in America (at the expense of American taxpayers)?
G/M should consider a less expensive CEO based in a cheaper country. After all, it’s all about economy, right?
Investing in Mexico and China while laying off American workers? Yeah, good move, GM. I understand corporations are in business to profit, but greed has crossed way over the boundary of what's necessary. Maybe the folks in their ivory towers could cut back significantly on their obscene wages and restructure with that as their theme.
The bottom line here is that GM makes more profit with pickup trucks & suv's than sedans, they are a for profit company that answers to their stock holders...that's the capitalistic society in which we live in, like it or not
11-27-2018, 04:42 PM
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