A case for government intervention?

AVGWarhawk · 11-11-10, 09:44 AM

Quote:

What helped GM, the bailout, or the restructuring?

Ultimately restructuring. Pontiac just died a silent death last week. Saturn died a silent death. Oldsmobile died two years ago. What is left? Chevy, GMC, Caddy and Buick. If not for the Chinese loving Buicks this arm of the GM company would have gone the route of silent death.

However, the bailout did allow GM to silently restructure. I do not feel GM is a survivor though.

11-11-10, 09:55 AM

What the article failed to mention.....

But GM warned that it expects fourth-quarter operating profit to come in well below the level of the first three quarters of the year because it is pulling back on production of trucks and making more small cars, which have narrower margins.

and........the gouging of the very folks who own GM.

GM's results indicate the company's North American unit earned an average of $3,005 on every vehicle it made in the third quarter, a reflection of its drive to boost truck output during the summer. GM also is commanding higher prices for cars and smaller sport-utility vehicles. By comparison, Ford Motor Co. earned $2,710 on each vehicle it produced in North America in the quarter, and Chrysler Group LLC earned $593 per vehicle.

http://online.wsj.com/article/SB1000...306436706.html

the_tyrant · 11-11-10, 10:01 AM

What caused the problem at GM?
is it because of the managements bad management?
Or was it that they over payed their employees?

tater · 11-11-10, 10:22 AM

Quote:

Originally Posted by the_tyrant

What caused the problem at GM?
is it because of the managements bad management?
Or was it that they over payed their employees?

Yes.

AVGWarhawk · 11-11-10, 10:31 AM

Quote:

Originally Posted by the_tyrant

What caused the problem at GM?
is it because of the managements bad management?
Or was it that they over payed their employees?

Add some of the ugliest vehicles you have ever laid eyes on as well.

Really, wth:

A car they should never have killed:

Toss in some unreliablity and voila!.....the accounts are in the red and operating in the negative.

SteamWake · 11-11-10, 10:51 AM

Ah this may explain their projections a little.

http://news.blogs.cnn.com/2010/11/11...leet-vehicles/

GE huh... of course what goes around comes around.

http://www.washingtonexaminer.com/po...-40686707.html

gimpy117 · 11-11-10, 01:27 PM

Quote:

Originally Posted by SteamWake

Ah this may explain their projections a little.

http://news.blogs.cnn.com/2010/11/11...leet-vehicles/

GE huh... of course what goes around comes around.

http://www.washingtonexaminer.com/po...-40686707.html

A hybrid fleet vehicle seems like a good idea. Should save money in the long run. Especially because company cars get a lot of use.

SteamWake · 11-11-10, 02:47 PM

Quote:

Originally Posted by gimpy117

A hybrid fleet vehicle seems like a good idea. Should save money in the long run. Especially because company cars get a lot of use.

Saves money

1.) Inital investment (they aint cheap)

2.) Equipment to keep them charged (it aint cheap) oh sold by GE by the way.

3.) Maintance (batteries do fail and they aint cheap) "Qualified mechanics required". Given GM's past history of reliability.. Ill bed a damn headlight for these gadgets cost 200 bucks.

4.) Limited range (If you want to travel more than 100 miles your going to have to use a 'normal' car).

I see it as a 'feel good' 'show you care' type of sentiment at best.

At least they found a ready made market for them otherwise it would really had been hard to sell them.

Takeda Shingen · 11-11-10, 11:03 AM

Quote:

Originally Posted by the_tyrant

What caused the problem at GM?
is it because of the managements bad management?
Or was it that they over payed their employees?

GM was a perfect storm of corporate trouble; poor management, poor business model, excessive benefits, the fleecing of the company by the unions and inferior products to boot. Some companies deserve to go out of business, and GM was one of them.

tater · 11-11-10, 11:08 AM

The GM bailout was. Union bailout. They should have been allowed to fail. Real reorganization would have nuked pensions etc and still saved the company this was done as payback to the unions by the admin

11-11-10, 11:14 AM

This should help GM, but it may induce a bailout for GE.

GE said Thursday it will buy 25,000 electric vehicles by 2015 in hopes of sparking demand for the emerging market for which it makes charging stations and other infrastructure.

Those charging stations must be very pricey indeed if GE can buy the cars to boost sales of the charging station. Or is it more smoke and mirrors, for which the tax payer will be on the hook.

http://finance.yahoo.com/news/GE-to-...7&asset=&ccode=

SteamWake · 11-11-10, 11:49 AM

Quote:

Originally Posted by The Third Man

This should help GM, but it may induce a bailout for GE.

GE said Thursday it will buy 25,000 electric vehicles by 2015 in hopes of sparking demand for the emerging market for which it makes charging stations and other infrastructure.

Those charging stations must be very pricey indeed if GE can buy the cars to boost sales of the charging station. Or is it more smoke and mirrors, for which the tax payer will be on the hook.

http://finance.yahoo.com/news/GE-to-...&asset=&ccode=

Guess you missed my post

11-11-10, 10:51 AM	#6
SteamWake Rear Admiral Join Date: Mar 2005 Posts: 13,224 Downloads: 5 Uploads: 0	Ah this may explain their projections a little. http://news.blogs.cnn.com/2010/11/11...leet-vehicles/ GE huh... of course what goes around comes around. http://www.washingtonexaminer.com/po...-40686707.html __________________ Follow the progress of Mr. Mulligan : http://www.subsim.com/radioroom/showthread.php?t=147648

11-11-10, 09:55 AM	#2
The Third Man Stowaway Posts: n/a Downloads: Uploads:	What the article failed to mention..... But GM warned that it expects fourth-quarter operating profit to come in well below the level of the first three quarters of the year because it is pulling back on production of trucks and making more small cars, which have narrower margins. and........the gouging of the very folks who own GM. GM's results indicate the company's North American unit earned an average of $3,005 on every vehicle it made in the third quarter, a reflection of its drive to boost truck output during the summer. GM also is commanding higher prices for cars and smaller sport-utility vehicles. By comparison, Ford Motor Co. earned $2,710 on each vehicle it produced in North America in the quarter, and Chrysler Group LLC earned $593 per vehicle. http://online.wsj.com/article/SB1000...306436706.html

11-11-10, 10:01 AM	#3
the_tyrant Admiral Join Date: Jun 2010 Location: Canada Posts: 2,272 Downloads: 58 Uploads: 0	What caused the problem at GM? is it because of the managements bad management? Or was it that they over payed their employees?

11-11-10, 11:08 AM	#10
tater Navy Seal Join Date: Mar 2007 Location: New Mexico, USA Posts: 9,023 Downloads: 8 Uploads: 2	The GM bailout was. Union bailout. They should have been allowed to fail. Real reorganization would have nuked pensions etc and still saved the company this was done as payback to the unions by the admin

11-11-10, 11:14 AM	#11
The Third Man Stowaway Posts: n/a Downloads: Uploads:	This should help GM, but it may induce a bailout for GE. GE said Thursday it will buy 25,000 electric vehicles by 2015 in hopes of sparking demand for the emerging market for which it makes charging stations and other infrastructure. Those charging stations must be very pricey indeed if GE can buy the cars to boost sales of the charging station. Or is it more smoke and mirrors, for which the tax payer will be on the hook. http://finance.yahoo.com/news/GE-to-...7&asset=&ccode=