GM & Ford

[opcat]

Should we let them go bankrupt? This would force  shareholders  fire their  incompetent management.

Obama wants to bail them out either way.

[AzCat]

The unions bankrupted them years ago.  They're both badly in need of going through the formal process in order to scrape some of the union baggage off.  Bailouts will do nothing more than delay the inevitible. 

[JTKSU]

The unions bankrupted them years ago.  They're both badly in need of going through the formal process in order to scrape some of the union baggage off.  Bailouts will do nothing more than delay the inevitible. 

These numbers are 2 years old.  I imagine things have gotten even worse since then.

These days, the Big Three seem more like welfare agencies than auto companies.

GM, for instance, pays out nearly $800 million a year to employees who have been laid off, yet receive near full pay and benefits. The future is bleak. GM strains under $75 billion in health care liabilities and owes $11 billion in pension payments to retirees who outnumber current employees 2.5-1.   In 2005 alone, GM spent roughly $5.5 billion on employee health care, nearly half of what the Big Three spent on health care overall. That translates into $1,500 for each vehicle GM makes. Another $700 per car is spent on pensions.These costs make GM cars pricier and hurt its bottom line.

http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=239411463169344&secure=976

[CatsNChiefs]

lol @ Ford going bankrupt.

[AzCat]

The unions bankrupted them years ago.  They're both badly in need of going through the formal process in order to scrape some of the union baggage off.  Bailouts will do nothing more than delay the inevitible. 

These numbers are 2 years old.  I imagine things have gotten even worse since then.

These days, the Big Three seem more like welfare agencies than auto companies.

GM, for instance, pays out nearly $800 million a year to employees who have been laid off, yet receive near full pay and benefits. The future is bleak. GM strains under $75 billion in health care liabilities and owes $11 billion in pension payments to retirees who outnumber current employees 2.5-1.   In 2005 alone, GM spent roughly $5.5 billion on employee health care, nearly half of what the Big Three spent on health care overall. That translates into $1,500 for each vehicle GM makes. Another $700 per car is spent on pensions.These costs make GM cars pricier and hurt its bottom line.

http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=239411463169344&secure=976

The really happy thought is that GM's unfunded mandates, though they're going to sink the company, are nothing compared to Social Security & Medicare.   

[FBWillie]

I think it's funny when union employees get fired, and their lazy uneducated asses can't find a job nearly as good as the one they're constantly bitching about....   so yeah. let the &@#%ers go bankrupt and have a good laugh when kia buys them out and pays the employees $12 an hour.

It's not like them going bankrupt would be disasterous... some one will buy the co. and the workers will just get laid off, only to be re-hired at a much lower pay with less benefits.   

Easiest and least painful way to let the bubble burst without wasting billions of taxpayer $$'s.   

And maybe GM & Ford will stop building pieces of crap.

[willie83]

Until the unions are busted, it would be throwing good money after bad. Let them shut down plants, then reopen with new fuel efficient vehicles and non-union workers. The workers will be getting all kinds of freebies from the Obama admin, no need for unions.

[JTKSU]

Until the unions are busted, it would be throwing good money after bad. Let them shut down plants, then reopen with new fuel efficient vehicles and non-union workers. The workers will be getting all kinds of freebies from the Obama admin, no need for unions.

If they are in the process of bankruptcy, I seriously doubt they will have the money to completely retool their plants, AND design an entire new line-up of vehicles.  Also- when they file, the people who will be getting screwed are retirees.  A large portion of their debt is for pension plans for the retirees. Not going to be a good thing to not only put 100,000+ employees on the streets, but also cut of the fixed incomes of 100,000+ more.

[michigancat]

BANKRUPT

[CatsNChiefs]

The old joke about you don't have to outrun the bear, just your friend applies here.  Ford is in infinitely better shape then GM, all they have to do is outlive GM and most likely they would reap massive benefits.  That said, Ford's global operation is performing quite well, Ford's golden.  For now.

[Pete]

The unions bankrupted them years ago.  They're both badly in need of going through the formal process in order to scrape some of the union baggage off.  Bailouts will do nothing more than delay the inevitible. 

I agree with the fascist on this one.

[steve dave]

Two garbage companies, wish they were already gone