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General Motors in Serious Trouble

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posted on Mar, 28 2006 @ 10:08 PM
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GM to cut Tech Center workers

Starting early today, hundreds of white-collar workers at General Motors Corp.'s Tech Center in Warren will be escorted to about three dozen conference rooms and told that today is their last day with the automaker.

-snip-

News reports and rumors of the cutbacks, coming a year after GM lost $10.6 billion, have circulated through the Tech Center since last week, and workers began referring to today as "Black Tuesday."

-snip-

Only three years ago, GM engineers celebrated the opening of the Vehicle Engineering Center at the Tech Center with a ribbon-cutting by Gov. Jennifer Granholm.

-snip-

Now, with GM's engineering centers around the world strung together with computer systems that can operate around the clock, more work is being performed overseas by lower-cost workers.

GM-Daewoo operations in Korea and new engineering centers in India and China are performing much of the work that used to be done in Michigan.

-snip-

Workers said the cutbacks will first hit the upper ranks, what is called the eighth level. Workers at that level have company cars; GM arranged for a taxi service to take them home, workers said.

-snip-

For a company long known as Generous Motors, the forced layoffs are unusually harsh. The automaker fired contract workers in the past, but usually resorted to voluntary buyouts for salaried workers.

-snip-

Last week, GM reached a crucial deal with the UAW to offer buyouts to 113,000 U.S. hourly workers in a bid to slash labor costs. Tens of thousands are expected to accept the offers.

White-collar workers have seen their benefits cut. Earlier this month, GM announced sweeping changes that will force workers to pay more for their retirement. Salaried workers have been forced to pay more for health care while losing perks such as tuition reimbursement and matching contributions to 401(k) plans this year.

Please visit the link provided for the complete story.


Laying off white collar workers whose jobs have gone to lower paid workers overseas. I don't think laying off your engineers when you need to get up to speed on new technology is the way to go. Who's running this place? :shk:
.




posted on Mar, 29 2006 @ 09:28 AM
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I don't think that they are laying off engineers, and as far as it being a good idea, yes, of course it is a good idea. The problem with many companies is that they are inferior, but protected by their government. It doesn't make sense to pay an american worker more money for lower quality work, whether they are on an assembly line or at a desk.

If GM wants to be successful, they'll have to outsource work overseas.

Interestingly, white collar workers traditionally rejected unionization because they were more closely allied with management, and the corporations would give them benefits and perks directly, to dissuade them from unionizing. Now, perhaps, with corporations changing that and not giving them any protections or the same benefits, perhaps white collar workers will start to unionize.



posted on Mar, 29 2006 @ 09:46 AM
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It was the unions that brought down that company. Once they are obliterated, the American worker will be able play on a level field globally and plants will once again find America a good place to settle down and build.



posted on Mar, 29 2006 @ 10:29 AM
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Originally posted by djohnsto77
It was the unions that brought down that company.

Demonstrate this please.


Once they are obliterated, the American worker will be able play on a level field globally

The american worker had better not want a level playing field, unless they are ready to have the same wages and benefits of people in communist china or india.


and plants will once again find America a good place to settle down and build.

Sure, if we obliterate things like the minimum wage, osha, permits, industry regulation, etc etc.



posted on Mar, 29 2006 @ 11:29 AM
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Originally posted by Nygdan
The american worker had better not want a level playing field, unless they are ready to have the same wages and benefits of people in communist china or india.


I suggest that this is exactly what the "Powers That Be" intend to happen. The American Middle Class has always been an aberation when compared to class structure in other nations. Those in power would rather have us all be serfs and peasants. Poor people are easier to control.



posted on Mar, 29 2006 @ 10:27 PM
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I see layoffs all too often as a solution. It's not really a solution, becasue if you want to stay in the car sales game you've got to build and sell cars. With a smaller work force, you may become less able to supply those cars.

If cutbacks continue as a solution, then all they are doing is shrinking. The only real solution is to sell cars, and sell more than you did previously, or two things could happen, the problem will not improve, or they will shrink into a worse condition.

If a company is going to cut back, it should be for the purposes of getting rid of the slackers and the leeches, so they can move forward again. And they need to find some way to move those current cars off of the lots.

And what good does it do America if you move jobs to another country? No offense to other countries, but we've got to do things to earn money and survive. That puts the money in corporate pockets, and takes that much more jobs away from them.

And perhaps were the prices of vehicles jacked up too high and therefore didn't move off the car lots? You aren't going to make money if there are a lot of folks who can't buy your vehicles. The suburban is nice, but the monthly payments would leave me with no cash to live on.

Troy



posted on Mar, 30 2006 @ 05:31 AM
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There are a few ways for General Motors to solve their financial problems. One way is to stop sending jobs to Mexico. Just because you want cheaper labor doesn't mean that the quality of your products will stay the same. Second, offer ex-General Motors division Electro Motive a new deal.
Third, make a deal with the unions where they will still have benefits but have a 10% cut in benefits.
Fourth, look at the number of sales of each vehicle for the past years and see what needs to be improved.

The Fifth and FINAL step.

Launch an investigation as to why General Motors is loosing money and how they are loosing the money.



posted on Mar, 31 2006 @ 02:22 PM
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Originally posted by Ambient Sound
Those in power would rather have us all be serfs and peasants. Poor people are easier to control.

The problem with this analysis is that the middle class developed because the US had a free market (more or less). If globalism is the extension of the free market, then it should make the middle class bigger, not make everyone serfs. Serfdom, wherein you are indebbted, even hereditarily, to work a particular peice of land or for a particular person, and cannot go where you want to get the prices you want, is the antithesis of globalism.

gimmefootball400, I think that they do the investigations you are suggesting, but why do you think that not having jobs in mexico, or india, etc, are going to help them? What if the analysis shows that that is just what they need to do?

Keep in mind that GM is more than just manufacturing plants, and also that most of the manufacturing plants that build the cars are in the US.



posted on Mar, 31 2006 @ 03:08 PM
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Originally posted by Nygdan
The problem with this analysis is that the middle class developed because the US had a free market (more or less). If globalism is the extension of the free market, then it should make the middle class bigger, not make everyone serfs.


And exactly where do you find anything that resembles a free market? Certainly not here in the US these days. Although we are told it's a free market, I don't really believe that it is. I am not allowed to produce, sell, or buy what goods I choose from whom I choose, so how can it be called free?



posted on Mar, 31 2006 @ 03:28 PM
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I agree there is no free markets! All are manipulated by rich bankers an powerfull people. GM should not be allowed to survice cuz they make crappy and too big american cars.



posted on Mar, 31 2006 @ 04:04 PM
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Problems with the American automobile industry have been building since the late 1970's, early 1980's when independent testing and evaluation of products clearly showed the quality of American cars lagging seriously behind German & Japanese cars. GM & Ford both knew back then that serious investment in plant modernization was needed if they were going to compete successfully with other car makers. Both companies though were so wedded to the quarterly profit sheet and their own stock prices that they could not, or would not, make the necessary investments. Consequently, the relative quality of their products continued to decline. To make matters worse, both companies made bad business decisions in the areas of automotive financing/pricing and in design. In essence, they both started discounting the prices of their products in order to keep their numbers up and in some cases misled investors and themselves into thinking everything was ok. Today they are paying the price for their past mistakes and I see no reason to bail them out.

If they go what a sad inglorious end it will be for the concept of America as a Blue Collar country.

[edit on 31-3-2006 by Astronomer68]



posted on Apr, 3 2006 @ 02:03 AM
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Why do people say that if GM goes under it's "the end of blue color America"? That is such a joke.

GM isn't the largest manufacturing company in America, ExxonMobil is. Sure, GM and Ford are ranked second and third respectively, but they are not that much larger than other companies on the list. What about Dell, IBM, HP, etc..

IW US 500 - Top 500 Manufacturing Companies Headquarted in the U.S.

Thats a lot of money coming back to the U.S., even if the jobs are sourced out as dramtically as some of you claim.

Let GM die, the UAW needs to take it's place in history and be just that, history.

[edit on 3-4-2006 by crisko]



posted on Apr, 3 2006 @ 02:39 AM
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crisko I don't think it's a joke at all. When you count up all the GM workers, plus the suppliers, plus the steel, rubber, glass, etc. industries that would be effected you are talking about a heck of a lot of people being removed from the manufacturing sector of the economy. Moreover, for as many years as I can remember, GM & Ford have more-or-less typified what people think about when they think "blue collar workers." In terms of sheer numbers GM & Ford shutting down might not amount to a terribly significant percentage of the total blue collar work force, but it would be a fundamental mindset change for Americans.



posted on Apr, 3 2006 @ 04:45 AM
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There is nothing wrong with a "mindset" change for Americans. We are not living early in the 1900's, when such a thing would have had as great an impact as many people still believe.

Sure, there are less "Blue Collar" jobs as we know it, but there are various other career fields that exist today that didn't then - look at the dozens if not hundreds of fields that have expanded, evolved or were even created; practically the entire IT industry, the PC industry, Medical Research, Bio Tech, Entertainment Industry I could go on an on.

When you take a look at the size of the manufacturing sector in its golden age and compare it to now, you have to also account for the expansion of the economy and consider the demand for jobs in those areas. Sure, a robot can replace an individual, but how many people did it take to design that robot, how many did it take to build, how many does it take to maintain it, how mane does it take manage it? I am sure if you account for all that, you will at least come out even.

The economy is moving on, we have to adapt and accept the fact that things change.



[edit on 3-4-2006 by crisko]



posted on Apr, 3 2006 @ 08:00 AM
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Originally posted by Ambient Sound I am not allowed to produce, sell, or buy what goods I choose from whom I choose, so how can it be called free?

A free market is one in which there are no regulations, the US economy is a Mixed Economy and is pretty close to a free market. The prices of goods flucuate according to what people are willing to pay for them and how much it costs to make them, rather than by fiat from the central government



posted on Apr, 3 2006 @ 08:04 AM
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I think that people suggesting that GM is going to go bankrupt anytime soon are overstating the situation. The start of this thread was about GM cuting the employees at a Tech Center. THe company has the largest share of the US automarket of all the auto-companies. Its simply not going to dissapear.



posted on Apr, 3 2006 @ 08:13 AM
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Anyone else see a trend? GM , Delta, Delphi, yeah thats 3 but, im confident that theres more, specialy ones we have yet to hear about becuz they might be trying to pull a ENRON, or Just they dont wanna screw their stocks up till they are sure they are blowing the big one.


There seems to be a huge decline in Americas Econmic Standards

i dont think it really matters if gm pulls its head out of the Manure, they are still selling cars to a population that wants more then they give.



posted on Apr, 21 2006 @ 12:18 PM
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Ford Reports Steepest Loss Since 2001

Weighed down by the high cost of restructuring and slow vehicle sales, the Ford Motor Company today reported a $1.2 billion loss for the first three months of the year. It was the company's steepest lost since 2001.

The announcement came one day after General Motors, the world's largest automaker and Ford's main rival in the United States, said it lost $323 million in the first quarter.

Both automakers have announced sweeping plans to eliminate a combined 60,000 jobs and shut down more than two dozen factories as their share of the North American automotive market continues to shrink. The costs associated with Ford's downsizing, which hit $1.1 billion, accounted for the bulk of its first-quarter loss.

More...



[edit on 21-4-2006 by loam]



posted on Apr, 21 2006 @ 03:20 PM
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It was the unions that brought down that company.
Demonstrate this please.


I work in the industry directly supporting the GM plant in Texas. I am not allowed to say more than that. The unions, and particularly the pensioned workers are costing GM and the industry billions of dollars that must be made up for in profits. They are paying retired workers sizeable pensions as if they were still working on the clock. Imagine trying to pay for a ghost workforce high wages and benefits ON TOP of the current group of highly paid UAW members. THAT is the current situation, tie that in with poor overall market acceptance of arguably less than premium quality and design choices and you have the current predicament. A large part of the blame should be placed on the design and quality aspects of GM, but a larger portion of blame needs to sit squarely on the shoulders of current and retired UAW members who have driven up the cost of business to extremely difficult to compete proportions. A little bit of perspective on wages- aside from very nice health and other benefits, the average starting salary for the support plant here is $18.50\hr with 50-60 hours a week, where every hour over 8 is 1.5x. That is middle-class income. The workers are largely uneducated and strict Union policies gives then a high level of leniency in attendence and protection from dismissal.



Once they are obliterated, the American worker will be able play on a level field globally


This is also an incorrect understanding of the situation - the UAW is competing with countries where the average wage is $4\DAY. Obliterating the unions or even dropping the wages in the current plants will not solve the problems of outsourcing for the American manufacturing parts of the economy.

The truly scary part is that our capability to produce real goods is being diminshed by outsourcing and by companies and countries OUTSIDE the US buying up those TRUE assets and infrastructure. Losing our ports and internal infrastructure alongside the bleeding of our manufacturing capabilities are putting this country in an EXTREMELY precarious position. Coupled with the very real potential of an economic crash tied in to energy repurcussions and gross inflation and loss of value of the dollar as countries dump the currency by buying real assets, thus leaving the dollar propped up by nothing substantial can very possibly lead to a depression that will grind to a halt our way of life.

If we cannot build things that people want and will buy, then the economy becomes sluggish and in grave danger. The loss of infrastructure and the capability is the thing we need to strongly guard against and pay attention to. There needs to be a much higher degree of understanding and discussion about the current trends in our economy and the Bush administration policies about foreign investment and outsourcing. Aside from the practical and serious concerns about port security (Bahamas\China, Long BeachCA\China, Multiple major and deepwater ports\UAE, etc) the impact of those REAL assets controlled by non-US interests needs to be addressed and acted on by the citizenry.

The american worker had better not want a level playing field, unless they are ready to have the same wages and benefits of people in communist china or india.



posted on Apr, 21 2006 @ 06:52 PM
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Why is GM specializing in full sized SUVs when the market is moving toward compacts and fuel efficient cars? Because a full sized SUV plant is easier to turn into a military vehicle plant.

GM's current state makes it a prime target for nationalization in case of a serious crisis. If it is nationalized, it will be for the production of warfighting material, not for the production of fuel efficient cars for the masses.



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