Who Will Gain From the GM Bankruptcy

gm bankrupsy

Way back in the Clinten administration they started outsoursing work. Then they started making more and more of the production of cars & parts in other countries. This put a lot of people out of work. But profit for CEOs & stockholders ruled. Soon whole factories were sent out of the country. Mexico, China,Japan are all making our cars and Parts. So when all these millions of Americans are out of work who can afford to buy cars or anything else???

Bev Randazzo of MI @ Nov 08, 2009 20:44:40 PM

Planned Obscolescence

I knew GM was in for trouble when it failed to respond to the market - high gas prices means that SUV and truck sales suffer. That seems obvious enough to me and I'm no Business person or CEO. Also, their policy of planned obscolescence - that of buying a car which is guaranteed to break down faster than (dare I say?) imports, thus creating demand for replacement of GM car parts.

Tell me this - if you were looking to invest, would you put money into a fund that continually requires you to add more funds when its competitors do not?

GM was providing the biggest, most obnoxoius autos to its designers and even paying their gas through company cards, even, get this, when they lived farther out of town than the suburbs. Tell me how that's going to insure profits, again?

Unions are partially to blame, yes. UAW had people living on pensions, covered heaps of their health care and were generally enjoying the fat of the hog. That money could have gone into research and marketing for GM (then again, if it flaunted Hummers and heavy autos, I guess that department wasn't watching the market).

Truth is, people's spending generates demand - we can all agree on that one as it is a fundamental tenet of economics - and demand explains why GM is now digging itself out of its rosy little universe of cake and Hummers.

They seemed to catch on pretty quickly though, when the car market started to tank. I'd be interested in their IPOs next year, and if I was in the market for a shiny new box 'o wheels, I'd buy American. That Cadillac sedan looks pretty delicious.

Yeah, GM had a little bit of a longer learning curve, but the coalescence of factors leading to its near demise - high gas prices, sub-par quality, union coverage - can only force them to trim the fat, decrease their product line, and build their reputation by enhancing quality.

Oh wait, they're already doing that.

I remain optimistic for them.

Leah of DC @ Aug 28, 2009 17:06:56 PM

Car Union

If you only built cars like the toyata and the honda, the

car buyer probably have no problem of buying american made car.

problem is the quality and fit both interrior and exterior are

missing.Worse missing screws.Don't get me wrong I own american

car, I have camaro, Trailblazer and convertible G6.

muddog 069 of TX @ Aug 22, 2009 21:36:38 PM

YOUR ADS

GET THAT STUPID AD THING YOU HAVE GOING THAT RUNS OVER WHERE I'M READING OFF YOUR SITE!!! I REALIZE ADVERTISING IS A NECESSITY BUT I WON'T BE COMING BACK IF YOU KEEP THAT CRAP UP!!!

DIANE BALSARA of FL @ Aug 21, 2009 13:33:37 PM

Save the Car Makers

You are one of those people who would still be paying fifty cents an hour if it wasn't for the unions. Don't you have a guilty conchase driving your litle forign car around. You should follow G.M.s example and take your business overseas.You could probably still get people to work for fifty cents over there. Be an American- Buy American.

WAR of OH @ Aug 19, 2009 14:55:59 PM

G.M. Chrysler

l am really sick of hearing idiots blame the unions for the automakers chrises. Look around you as you drive your Toyoto. See how many rice burners are on 7the road. These unamerican car buyers are the reason for the American automakers problems. Be American-Buy American.!

WAR of OH @ Aug 19, 2009 14:41:57 PM

Dennis Clay of Georgia

Very well thought out and accurate comments. You've said it all................the truth.

Linda of FL @ Jul 20, 2009 13:33:01 PM

save the car makers (revised)

Get rid of the unions. When it takes 5 people to do the job 1 should be doing than you can never survive. GM, FORD and others are not in business to give you a job; they are in business to make cars and to make a profit. If they hire you to work for them and they tell you what they are going to pay you and when you will get a raise and what your job is going to be, and they do what they say they will. Than you have no right to hold them hostage to get what you want. What you need to do is go and get you another job if you are not happy. It is better for a 1000 people to have jobs than none at all when the plant closes. One of the largest LTL trucking company's closed and went out of business because the teamsters would not take a small pay cut. Their drivers were already making 75 to a 100,000 a year but they did not what to take a 15% pay cut. WELL NOW THEY HAVE A 100% PAY CUT. Unions were great for what they were designed for, but now it is nothing more than legalize extortion. If my people went union I would tell them go ahead and do it will be the best thing you ever did for your shelf. As soon as the papers were signed I would lock the doors sell all the assets and go live on a beach some were. My dad worked for GM in Doraville, Ga for 35 years and was a big union supporter and back then maybe they needed it. I work in the Haz-Waste ind. and have done a lot of work at the GM plant in Doraville (that is closed now) and I had to have someone outside from the maintenance dept while we were pumping tanks because that is what the union said GM had to do. These guys would come out roll their coveralls up and go to sleep up against the bld. Now how can you justify that? If GM makes a 100 million $ in profit than it is not the unions place to tell GM or any other company that they will hold their business hostage if they do not give them some of their profits. The last time I checked you start a business to make profits and not give it away. There are a lot of people that have to share the profits other than the people in the union and these people are the ones who took the chance on losing everything to start up this company and to give you a job that you think is owed to you. Well if you want to share in the big money than pull $200,000 out of your bank and buy the stock the other people bought. Oh but you know you would have to give up buying that bass boat and the big screen TV oh and don't for get you will have to drive your car for 10yrs instead of 2. The people who take the risk should make the biggest share of the profit and if you work there you did not take much risk and on top of that you are being paid for the little risk you are taking. Wake up is it better to be working and making at least a living and be able to buy food for your family and have a roof over your heads. Or be laid off and living on the street. You better wake up America and see these businesses do not owe you any hand out. We will fall because of greed!!!!!

Dennis Clay of GA @ Jul 12, 2009 11:00:49 AM