new GM ownership

[MadMo44Mag]

Being in the auto industry and dealing with the big 3 every day, over the past 10 years I have come to one conclusion.
Until the big 3 force the unions out and merge into one company the US auto industry is doomed.
GM,Ford and Chrysler need to merge into the new AMC ( American motor car) company.
Take the top 3 or 4 vehicle from each line and produce these vehicles to compete against the Asian markets.
As long at Detroit keeps competing with each other they are doomed.
Now with the US government involved they are probably doomed anyway.

[kingofwylietx]

Take the speed & efficiency of the government, the self-serving nature of the union......this should all culminate into a company able to produce inferior quality, with substandard performance, at a very high price per unit.

[DCortez]

Take the speed & efficiency of the government, the self-serving nature of the union......this should all culminate into a company able to produce inferior quality, with substandard performance, at a very high price per unit.

+1

Now that Uncle Sam is in control, I would never buy another GM product once our Suburban is sold or dies.


Redundant, but the user comments are fun to read:
http://hotair.com/archives/2009/04/2...nistration-50/

[JKTex]

No doubt the unions have been a major problem but the Detroit 3 are in much better shape with the union today than they ever have been, and as things change, they'll be even better off over the next 2 years. The problem is that it was too late. Now they're having to try to get even more and while the union is working with them to some degree, it's STILL not enough and it's way late.

Bankruptcy will at least allow them start from scratch. The problem will the people hurt by it. Most will be the ones that are not from the real union problem era, just average working class Joe's and Jane's trying to keep the mortgage paid and food on the table.

[dbgun]

the US Gov. will own 50% (or more),

So is G.M., going to stand for Government Motors?

[JKTex]

Did anyone catch the actual numbers? I heard something along 10 billion owed to the UAW will be exchanged for 39% ownership and 27 billion owed to bond holders for 10% ownership (can you believe that crap?).

Any info would be appreciated.

Actually, part of the changes that have and will benefit GM include the UAW taking over a huge cost burden in 2010. The $20+ billion that GM must pay into a Health Care Trust by next year is so that the UAW will take over health care for Union members. In the current proposal, about half of that would be converted to common stock which could be good for the Trust.

But, I think it's a long shot that enough debt holders will swap for common stock. They need close to 100% and I doubt they'll get anywhere near that. So, the current proposal is probably moot. It actually could just be a way for GM to buy time and still meet the deadline for coming up with something. This way they can say they have a great plan, but debt holders are holding it up.

Next step is bankruptcy. I think that's they're real plan.

[Starker]

So is G.M., going to stand for Government Motors?

It already does.

[country_boy]

Even though I didnt grow in the 60's and 70's, why cant the big 3 make vehicles like they did back then?? F bodys with a carburetor engine. They can make them a little bit modern with a fuel injuected opinion but, keep the square body look and put real muscle in them. Let the steel industry produce again, that will give people jobs. Oh wait I forgot the insurance companies, the epa, and all the other morons out there wont let them. Instead we putt around in little jap cars and or bubble style government motor cars... No thanks.

[M. Sage]

Actually, part of the changes that have and will benefit GM include the UAW taking over a huge cost burden in 2010. The $20+ billion that GM must pay into a Health Care Trust by next year is so that the UAW will take over health care for Union members. In the current proposal, about half of that would be converted to common stock which could be good for the Trust.

So wait... The UAW is going to pay the health insurance for their members. The UAW, which is funded by those people.

Yeah... that's great economics there. Whoever thought this plan out is brilliant, let me tell you. The only winner is UAW staff.

Even though I didnt grow in the 60's and 70's, why cant the big 3 make vehicles like they did back then?? F bodys with a carburetor engine. They can make them a little bit modern with a fuel injuected opinion but, keep the square body look and put real muscle in them. Let the steel industry produce again, that will give people jobs. Oh wait I forgot the insurance companies, the epa, and all the other morons out there wont let them. Instead we putt around in little jap cars and or bubble style government motor cars... No thanks.

Steel industry is dead. All the mills were torn down, sold, shipped to China and reassembled sans pollution controls.

I'd rather "putt around" in a Japanese car than an F-body any day. Bleah. Have you driven many American cars from the 70s? 70s American cars were garbage; de-tuned to death, overweight and ugly. The Corvettes from the mid-70s weren't even making 200hp (and weighed nearly 2 tons).

I'd be more of a fan of carburetors, but American companies (again) missed the boat on that particular technology for the most part. AFAIK, Ford is the only US company that even tried using a CV carb, and they managed to screw that up. Constant vacuum carbs are the way to go, if you're going to use carbs.

I used to work in the supply chain for Detroit. The first jobs I had are probably gone, baby gone by now.

After working on cars, I'll tell you that there are few American cars that I'd buy... though I'd buy American cars before ever sliding behind the wheel of something European.

[DCortez]

On second thought, if they brought back the 1972 Cutlass Supreme or a Buick Centurion, I'd buy one. Better be two door, though.


Job loss is a terrible thing, but what the government is doing is worse.