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View Diary: GM's posts record loss (250 comments)

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  •  Lets not forget the pay package (2+ / 0-)
    Recommended by:
    Heartcutter, ArtfromMI

    That R Wagoner gets for managing the company through this massive losses. Last I heard it was millions.  As he cuts workers wages to $14.00/hour by buying out the $78 /hour workers for about a years wages and benefits.

    One of the groups that bailed GM out , time and time again was their workers by buying vehicles when they started stacking up. Not anymore.

    If I got my PRs Straight, their big move is to come up with $25,000 hybrid cars to compete with the Japanese and Koreans. GM virtually ceded the car business to the Japanese and now they are planning on hitting them at the high end and high mid end as they pay workers starvation wages to make  first class vehicles.

    They announced this would be starting around 2010 - maybe a few in 2009. Meanwhile their cash burn is 1 Billion a month. Of course they would argue that this quarters loss was filled with one time charges, the same way they have argued each quarter as they lost billions.

    The Cash Burn is the key. At some point people will become nervous about buying any cars from them , especially $25,000 cars as their cash dwindles.

    Support Col Hackworth's because tomorrow is just a promise, not a guarantee

    by Dburn on Fri Aug 01, 2008 at 11:35:18 AM PDT

    •  $78/hr !?!?! (0+ / 0-)

      Holy crap, is that for the assembly line guys popping on bumpers and fenders?  That's insane.  No wonder GM is f&#&ed.  You can't pay those kind of wages when the product is a $14k Chevy Cobalt and expect to do well.

      Sorry but the union does have a hand in their own demise right along with the asshats in the boardroom.

      •  That's not their take home..... (2+ / 0-)
        Recommended by:
        Linnaeus, Odysseus

        That's total package. And no, they don't all see the benefits of that package.
        If you think ANY American worker is paid too much, put down the keyboard and pick up a shovel.

        If McCain is the answer to America's problems, then the question must be ridiculous -David Paterson NY Gov.

        by geez53 on Fri Aug 01, 2008 at 12:47:11 PM PDT

        [ Parent ]

    •  Like a lot of US industry, they fired/cut pay of (0+ / 0-)

      their best customers - their employees.

      Can't have it both ways.

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