Automakers: Counterpoint
Might be fair. Would you take $90 MM to board the Titanic after it kissed the berg? You’re paid only if you can save it. Otherwise go down with it.
Posted by Oink
11/21/2005 at 08:45 PM
Ah yes, the money song from Pink Floyd. That was my ex’s theme song.
Maybe GM is like the legend about the ‘Brontosaurus’ I heard as a kid—it took 15 minutes for the message to get to its head that a Tyranosaurus was munching on its tail.
A relative of mine is quitting a lucrative job at a large firm largely because he doesn’t have enought to do, and most of his assignments are boooring. I asked him what bad thing would happen to the company if he didn’t do any work: Nothing. I’d be outta there too.
Posted by Oink
11/21/2005 at 09:09 PM
Hard to believe this is happening to GM. Though I must say the cars that they produce don’t seem as innovative as Chrysler for example. In Britain the domestic car industry has all but disappeared. Nissan, Honda and Toyota all have assembly plants. Jaguar and Aston Martin are owned by Ford and the rest is pretty much cottage industry stuff. I can’t see them getting many applicants at $9 an hour. Mind you that’s about minimum wage in Britain so maybe they will. Every now and then we have similar stories about greed and ludicrous payouts to senior executives. It keeps the peasants angry I suppose. I can’t get too worked up over it myself. Then again I don’t work for GM!
Granholm, the Bimbo Democrat Gov of Michigan has gone insane. She won’t be able to be elected as dog catcher next year. She vetos a tax cut and hiring bill. Granholm can only think of raising taxes, like all Democrats.
Between GM’s CEO Wagoner, another Socialist, and Bimbo Donk Gov Granholm, Michigan is Dooomed.
Today’s Detroit Editorial:
There’s much to be done. GM has lost more than $4 billion this year and had its credit rating downgraded to junk status. Also, the company’s market share has fallen to about 26 percent and will drop to near 23 percent when it reduces its output by about 1 million by the end of 2008, according to estimates.
However, becoming smaller and more efficient, combined with creating products that consumers want, should help the company become more competitive with Toyota Motor Corp. and other Asian automakers. Right-sizing and focusing could help GM eventually add jobs back to the industry.
Similarly, Ford is restructuring to right its ship. In addition to negotiating with the United Auto Workers to win some health care concessions as GM did, Ford is restructuring its executive ranks, increasing production of gasoline-electric hybrids and trying to become a leaner operation.
Michigan can do its part, too. Gov. Jennifer Granholm and state legislators must create real tax reform in the state. Her veto Monday of the tax-cut components of bills sent to her certainly don’t endear the state to new businesses and leave those still here wondering when they’ll see some help.
Michigan’s business tax climate is among the most unfriendly in the nation and must be significantly overhauled, not just for automakers and their suppliers, but for all employers.
Wagoner has said GM’s restructuring plan will keep the company from filing for bankruptcy protection. For the sake of the state and its workers, let’s hope he’s right.
Posted by Z Woof
11/22/2005 at 08:42 AM
In all fairness to Delphi’s CEO Miller who now has a great tax free HSA quote, so he can’t be all bad.
Miller is now working for $1 a year, I kid you not.
Delphi should be sued for paying below the minimum wage for their CEO, where’s OSHA?
Delphi CEO Miller said, “Hell, my $3 million in stock is going to FlatLine toooo.”
Posted by Z Woof
11/22/2005 at 08:54 AM
11/21/2005 at 10:16 PM
