By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our
Privacy Statement, and you agree that your use of the website is subject to our
Visitor Agreement.
Comments
Featuring the future president of the U.S. -Virgil Bernero :shades:
-Rocky
-Rocky
Obama Caterpillar visit
(Caterpillar union is UAW...?)
2014 Malibu 2LT, 2015 Cruze 2LT,
Cardboard box living in Detroit
So why have you been hanging around the Genesis discussion?
Published: 3/31/09, 7:05 PM EDT
By MEGHAN BARR
COLUMBUS, Ohio (AP) - Honda Motor Co. is offering voluntary buyouts, cutting workers' pay and imposing 13 non-production days at its North American plants to reduce its production this summer by 62,000 vehicles.
Honda spokesman Ron Lietzke said Tuesday that the buyouts will be offered to most of the Japanese automaker's 35,600 employees in the U.S., Canada and Mexico. Enhanced retirement packages are also being offered, he said.
Overall compensation will be reduced for its North American employees, with top executives experiencing the biggest cuts, Lietzke said. He would not say how much salaries would be reduced.
Bonuses will be greatly reduced or eliminated, but pay rates for production and hourly workers will not be affected, Lietzke said.
"There is a continuing need to reduce our inventory," Lietzke said. "Regardless of job title or level within our organization, each Honda associate will share the responsibility of doing what we must do to remain competitive."
Honda builds Accords and Acuras in Marysville, Ohio, near Columbus, and makes Civics and Elements at a factory in East Liberty, Ohio. The company also has an auto plant in Alabama and it makes parts in Georgia.
The 13 non-production days will fall from May through July, and employees will have the option of using vacation days or taking no pay on most of those days, Lietzke said. The company is limiting non-work days to two a month to limit the effect on employees, he said.
The company said in December it would cut vehicle production at its Ohio plants by 58,000.
Honda followed that with an announcement in January that it would reduce production in North America by 29,000 vehicles, a move that would affect plants in Ohio, as well as Ontario, Canada, and Lincoln, Ala.
Never us, always "them". Never I, always somebody else. Car was invented here (it really wasn't, but the President said so, so it must be true), so an American com pany and its labor can do no wrong.
2018 430i Gran Coupe
Of course I can hear you talking about those capitalist pigs slashing those devine-given jobs. Simply reduce the output - simple as that. People don't want/need as much product so you make less. Since you make less you need less labor. Try that with Detroit :sick: .
Now - when (yes - when, not if), the demand picks up, the same people laid off get back to work, perhaps even with overtime.For now, they simply run less - because they can. Detroit? Until December '08 their business model was "we lose money on every car we make, but we compensate that by volume".
2018 430i Gran Coupe
I could never understand why a carmaker wanted to increase market share by a few points, solely for the market share...often they would sell the cars cheaper (less profit) just to say they have 20% market share instead of 18%...so what???...
Ads that say "the largest selling model in the country" does not make me want to buy it...design and quality make me want to buy it...
I think GM would THRIVE if they had a 20% share but made top notch vehicles, only fewer of them...hence, dump Saturn, Pontiac, Hummer, Saab and GMC or Chevy truck (keep one brand, drop the other); make top notch trucks, Chevys, Caddys, and either dump Buick or merge it into Caddy as an entry level luxury car...
I am available to lead GM for a few years as CEO, and I ONLY want 5 million a year...pennies compared to the rest of them...when the position opens, please call me at 800 555 1212 and ask for Bob... :P
Gee, it looks like Honda knows how to be proactive in a tough market. Before they have a gun to their heads.
I think you forgot currency manipulation.
That must be why GM is in such trouble.
Maybe that sort of perverse incentive was written into their contract? You know, for every percentage point increase in market share I get a $10 million bonus that year.
ads that say "the largest selling model in the country" does not make me want to buy it...design and quality make me want to buy it...
Same here. I was never enamored with the first generation Ford Taurus, even though Ford sold a ton of 'em.
The administration appears to be drawing in part from a playbook used with troubled banks, with the goal of creating a new, healthier G.M., but leaving behind its liabilities and less valuable assets, perhaps for liquidation. More often referred as the “good bank-bad bank” model, the approach can infuriate those with claims against the bad bank.
Under a plan being worked out by the administration, G.M. would file for prearranged bankruptcy, according to these people. It would then use a sale authorized under Section 363 of the bankruptcy code to quickly sell off the desirable assets to a new company financed by the government. These good pieces might include Cadillac and Chevrolet, as well as assets the company needs to run the business.
Less desirable assets, brands like Hummer and underperforming factories, would be left in the old company. Proceeds from the sales, including stock in the new company, would be given to the old G.M., helping to settle claims.
The plans are still being discussed, and the details are subject to change, people familiar with the talks said.
G.M. joins a long list of companies in industries like airlines, railroads and steelmakers that have faced the prospect of being remade in bankruptcy. Typically, a troubled company usually seeks to line up creditors, employees and other stakeholders for a plan of reorganization before a bankruptcy filing. Failure to achieve this agreement can create a prolonged and messy court process as the company battles its creditors while its business and financing rapidly deteriorate.
Elements of the government’s plans for G.M. are in some ways similar to the demise of Lehman Brothers last fall. A day after filing for Chapter 11 protection, the securities firm agreed to sell the bulk of its North American business to Barclays Capital, the British bank. The sale was completed in a little more than three days.
Regards,
OW
Those days are OVER, carlady. Give us a break!
Watch and see what happens to GM and C....the cars that didn't sell are toast...and those models were out for sale when financing was like taking candy from a baby. Now that credit is tight, you buy only the best for as great a value as possible, not the same old GM fix-it-ups and pick-em-ups.
Regards,
OW
You are right at some point. Some people, like me, don't care about brand. If I like the car, I buy it. If Indian or Malaysian offers me car of my dream, I'll buy it. Could I get RWD or AWD with RWD bias coupe with V6 300hp from GM? I also need free loaner car for my oil change & etc...
Actually Ford only sold half a ton of the Taurus. The other half ton was given to the rental car companies.
Owner ship in the US is at 101% for everyone with a license while it is at 75% in Canada. Credit and the economy don't help either. People are steering clear of medium to large investment and a decent percentage can't get credit.
That being said, I can definitely imagine the market going on an upturn in two years and being at full speed in five. Have we ever had such a great selection of SUVs, cars, and trucks?
If Ford had debuted a new overhead-cam engine for the Taurus by 1988 and fixed the transmission problems immediately - in other words, adopted a policy of continuous improvement, as Toyota and Honda have done - the car would probably still be a best-seller.
http://news.yahoo.com/s/nm/20090401/ts_nm/us_autos_report_sb
if GM never made a dime under Wagoner, why would rocky follow the man's career like some rockstar???...he was, obviously, out of his league as CEO...
A question that I asked for years that no one in the auto industry ever seemed to confront: with all those record- breaking years of sales in the last decade, and with cars lasting longer than ever before (even UAW cars are better than the 70s and 80s), didn't ANYONE think that at some point the auto market would literally be SATURATED with cars to the point that people might go for years without a new one???...following that thought, didn't ANYONE see the overcapacity problem that would eventually hit ALL carmakers, esp the ones with excess capacity in the GOOD years (think GM), know they would REALLY have excess capacity at some point in the near future???...leading us to the natural consequence of...CLOSING PLANTS AND DUMPING EMPLOYEES WHO WERE HARDLY NEEDED IN THE GREAT YEARS AND ARE CERTAINLY EXCESS BAGGAGE IN THE DOWNTURN YEARS...am I the only one that saw this, even without the AIG and other financial problems???
With everybody leaving Detroit, maybe real estate is the best field to be in, but only in Detroit...as houses will be selling like hotcakes...
The technical gurus in ALL of the auto manufacturers have been caught with their pants down....but they are in line behind our illustrious banking geniuses!! :mad:
Regards,
OW
Maybe in five to ten years the market will stabilize at 90-95% ownership. Hopefully with new management at the Big 3 and realistic credit restrictions the market wont get flooded again. :lemon:
Obviously, whoever took over later completely forgot the lessons of the 1980s...
The one thing we learn from history is that we obviously learn nothing from history...
But we didn't have internet.
There are plenty of sites around the net to talk politics. But we're talking about the UAW in here.
I believe this is a major reason (as well as what I stated above) as to why they don't bring their diesels from Europe here. I also believe many would hesitate to buy a diesel from any car company decause of that debacle.
BTW, the old V-8 diesel block is highly sought after for racing, as it is quite sturdy for gas applications.
My interview with the dealership went good but what they have to offer in commission structure, no demo, and having 6 brands and only 30 something new cars out wasn't very encouraging news. I guess they have to interview a few more candidates before they will make a decision and they are going to let me know one way or another by the end of this week or beginning of next. I did check out a 3.8 Genesis and a brand new right off the shipping truck black Nissan 370Z. :shades: I really like the 370Z and I think it's one of the best looking cars ever made.
-Rocky
rcoky, I think you have missed the point by so much that it is hard to believe you have reached adulthood...
when a client comes to me, they are usually quite upset, often emotional (both men and women)...whether they lost a job, or lost a spouse thru death or divorce, or just had their work hours cut in half (and also their paycheck), they are not happy...almost always, they were living easily within their means (which I will define as making all of their payments...you may argue they had too much debt to begin with, but that is irrelevant...if they are making their payments they are within their means) and then something happened and they are falling behind in their payments...
when we discuss bankruptcy, it is because they are completely unable to kepp up with expenses and payments, now that their income has dropped, for WHATEVER reason...now, they are aware that they signed contracts with Visa, Mastercard or Amex and they are legally responsible to pay their debts...BUT THEY CAN'T...and no amount of crying or moaning will change that...so, bankruptcy is for those who are UNABLE, not unwilling, to pay their debts...
rocky, GM is simply identical to my last client, except that the debt is in the billions, and that is billions of $$$ that GM does not have...you can squeal, cry, moan and holler, but when will you face up the the fact that the contracts they signed, agreeing to pay out certain monies in the future, that money simply is not there...stop bitching...it simply is NOT THERE...GM is just much larger in size than my last bankruptcy client, but it is the same...
how do you expect GM to pay out when it is broke???...I take no glee in seeing this, but, after all this, what did you expect???...be mature and honest about this...what happens to ANY company when its debt is 100 times what it earns...they are insolvent and have been insolvent for more years than you seem to understand...Wagoner, for better or worse, seems to have lost about 80 billion $$$ during his tenure, and you worship the ground he walks on...he did NOTHING for GM except take up space on the 14th Floor and lose money...it seems that anytime a CEO comes from finance, they know nothing about cars, and finance men have run GM since Roger Smith...
I absolutely will complain simply because I do not believe that taxpayer money should bail out the retired UAW workers anymore than AIG, Big Banks, and they sure as hell won't bail ME out if I don't make my bills...
what makes you and the UAW so special???...NOTHING...a bunch of folks occasionally showed up sober, made some cars over the years, much of it was boat anchor material, and they retired...they have no more right to my tax money than anybody else, but you still live in the dreamworld that elevates them over every other illiterate in this country...
They had it good while the Wizard's Curtain hid the Wizard...now the curtain is pulled back and the crap is exposed...their retirement is no more sacred than mine, but you act like it is Divine Right...
GM must breach its contracts for the same reason that everyone else does...because the money to pay simply isn't there, their product quality is, simply, too little too late, and, like the boy who cried wolf, no one believes in GM anymore...they had it coming because they took advantage of American buyers for years, and the "quality chickens" are coming home to roost...selling a few top-notch Malibus, CTSs and Buicks does not bring in enough money...dumping all the excess baggage (Hummer, Saab, Chevy Truck, Pontiac to name a few) will bring forth a new company from the ashes...they have been too big for too long, and the ONLY thing keeping them alive was a credit line and sheer momentum of their size...the company was shot to hell years ago, and anyone with half a brain (UAW excluded) could see it coming...the last book I read (The End of Detroit) was written in 2002, and they saw it back then, exactly as it is happening now...
GM, like the Alfred Sloan hierarchy, is dead, and has been dead for years...it was good in its time, but its time has long passed, and only the auto workers can't see the Reality...
We WILL have an auto industry, and a strong one at that, but the model of business must change...GM will simply be another large auto company (I think it has been written that years ago Chevrolet, by itself, was larger than most other auto companies) but not the goliath behemoth that it has been for the last 75 years...Kmart ran the roost but was dethroned by WalMart...local drug stores ran the towns until CVS and Walgreen came in...
The only thing constant is change, and the automakers are finally adapting to the world in which they sell...the world controls them, but they always thought (and acted) like they controlled the world...
The dynasty called General Motors is over...may it rest in peace...
I don't wish anyone ill in the UAW. I just feel they have brought this on themselves. That includes the retirees and older workers in the UAW. Plus the UAW leaders. They saw the jobs going away in the 1970s. Instead of sitting down with GM and saying what kind of cuts can we make to insure jobs. They would go on strike like there was no end to the money. GM was losing $billions in 2005 when they set up the two tier system. Why didn't they say what is good for the new hires is good for the old timers. NO the older guys were greedy and showed the attitude screw the new workers. We are keeping what we have. Well those greedy oldtimers are about to lose also. They could have dumped the gold plated health care for retirees years ago. Saving GM $7B per year over the last 20 years. No they had earned it and that was that. Well they are about to find out how most of the countries retirees handle health care. We pay our own at least till forced onto Medicare at 65. Then we have to have a supplemental to actually get any kind of health care.
Bankruptcy looks like the way they will head, with Cadidillac and Chevrolet emerging as the New World Order GM.
Wow...kind of makes one's head spin, huh? Not completely around, I didnt' say that! :shades:
2021 Kia Soul LX 6-speed stick
NJ CEO gives employees $1,000 from his pay
The Associated Press
SHORT HILLS, N.J. - A New Jersey CEO dipped into his own paycheck in a bid to stimulate the economy.
Jack Windolf gave $1,000 to all 434 workers at Bollinger Insurance Solutions and told them "let's jumpstart this economy."
Windolf says the idea came to him a year ago when he received $500,000 in deferred compensation after he orchestrated the sale of 51 percent of the Short Hills-based company. Windolf included a provision that said he could direct the money to other employees.
The CEO calls it the "Bollinger Mini Stimulus package."
Employees were surprised when they found the envelopes in their mailboxes on St. Patrick's Day.
Human resources vice president Maria Force says she'll use the money to help her two kids in college.
Didn't the financial analyst that went in front of congress quote $300 Billion.
Bankruptcy is a much cheaper option.
Also thanks for the info, I knew Ford had iPod connectivity (Sync is awesome) but was not sure GM had it.
1. Chevrolet/Corvette/GMC Truck
2. Buick/Cadillac
All made by non-UAW workers, and the quality will skyrocket...
Remember, the UAW folks have a silver-spoon-in-the-mouth mentality, kinda like a welfare mentality on a lower level (...
GM needs to simply hire all new workers to replace the UAW...don't worry, they can train them in about a day, and, without all the fiefdoms to worry about, the new workers may actually CARE about product quality and even having a job...finding people without the welfare mentality will be GM's salvation...they need to move South...
There should be four types of dealerships:
Chevy/Buick
Chevy/Buick/GMC
Cadillac
And a few specialty GMC dealers.
GMC still brings in more revenue than any other nameplate besides Chevy.
As for the UAW, they should disband, regroup under another name, and give in to any concessions GM and C want.
Chevrolet: everyday cars, trucks
Buick: near-luxury - Acura-Lexus-Infiniti-Toyota Avalon level
Cadillac: No holds barred, no compromise luxury vehicles - BMW-Mercedes level and beyond.
After Obama/govt induced structured(?) C11 gets done for GM, UAW contracts will be voided. GM can merely invite all former UAW employees to submit resumes for jobs. Managers and supervisors, rehired under a "new" GM, know the union hotheads and malcontents and will simply not rehire them.
Split up C11 reorganized GM into two different companies:
One is the "Cadillac Company" which maybe can strive to compete with Mercedes someday. It has to be exclusive and stand by itself without encumberances of remainder of GM.
The other is the "Chevrolet Company" which builds cars, trucks, suvs. The Lucerne is merely like a Toyota Avalon, though not quite as good, and can be rebadged Chevrolet Lucerne which would be Chevrolet top end car as was Caprice Classic years ago. The Enclave could be rebadged to Chevrolet Enclave and get rid of Traverse. No need for Lacrosse.
Important to entirely lose the "GM" name in that it has such a bad reputation and it would be a stigma and albatross on the newly formed companies. Also important, after UAW contracts are voided in C11, for new companies to NOT HAVE any association with UAW. Hopefully, newly hired assembly and other workers would not be motivated to start/restart a union.
I believe the Obama people realize that GM cannot sustain their current model using UAW labor. They just are in a dilemma as they would like to keep the Union voters happy. To survive the UAW workers will have to be cut to $20 per hour max with modest health care partially paid by the workers. And a matching 401k for retirement. The paid health care for retirees has to be eliminated. That is the biggest drain on D3 finances. GM cannot continue to pay $7B per year for retiree health care. VEBA may work if the UAW goes to a much less expensive plan. It needs to be phased out and retirees need to look for less strenuous jobs after they retire at such an early age. The days of retiring at 55 need to be addressed. That leaves a decade of expensive health care for someone to pay. At current Cobra rates I would be paying over $132,000 for 10 years coverage. If a person has stashed that kind of money to cover his medical. Then early retirement is a viable option. The Boomers are retiring and they will be expensive to maintain.
I think Mexico is the logical place for GM manufacturing to expand. Easy transport of finished product and a very capable, willing workforce.
Wait a minute. That is insulting.
The argument to save Buick, is it more sentimental than reality-based. Chevy and Cadidillacs make more New World Order sense to me.
I have to see the 2010 Chevy Volt in production form, getting it's 400-mile range and looking all dressed to kill on American highways and biways. Yikes, about a year and a quarter ago, Dec.of '07, something clicked inside of me. I was willing to let decades of ICE cars and trucks wilter in the SW desert for a shot at an all-electric rig. Bring 'em on, I know this is going to piss a lot of you off, but if Wal*Mart can sell shiploads of Chinese-made products, BYD can certainly import the e6 all-electric in late 2010 or early 2011, sell it for about $27,995, Obama will offer the $7,500 "green" rebate and I'm fully completely in the New World Order. It's the product I shop for, if Congress OK's a product for sale in the U.S., I view it as fair game. Besides, isn't a Company that Warren Buffett decides to invest $220M of Berkshire-Hathaway funds in at least of some interest to y'all?
Marty, where's my flux capacitor?
I've already given my spiel for UAW's to retrain in the Medical fields. It still is one of the best retraining options for you all. It's not like I have never had a job helping to build widebody jets up north and been given two pink slips. All of one's background comes in to play when they look for work and make shopping decisions, huh?
2021 Kia Soul LX 6-speed stick