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Date: Mon, 17 Oct 2005 09:47:43 GMT
From: "Jeremy Brown" <Jerem43nospamcom>
Subject: Re: GM File for Chapter 11 on the 18th of October????


According to an article I read earlier this summer, GM has some serious issues with its pension & medical plans. In the last contract with the UAW union, GM agreed to pay something like 95% of all medical for all its current employees and 100% for all of its retirees. If anyone knows the state of the medical industry (yes, industry) in the US, there has been a massive increase in costs in the last decade, along the lines of 15-20% annually. These costs are starting to really cut into GM's bottom line, so much so that they are starting to rob their other divisions and accounts to pay for the cost of the medical plan. With the bankruptcy of Delphi, GM has to contractually take over the pensions of Delphi's workers, further cutting into its bottom line. There has been talks of GM trying to renegotiate the contract with the unions but they will likely refuse to go along. This may well drive GM into a bankruptcy that will make Enron and WorldCom look like your local mom and pop store going out of business. All of its pensions would be off-loaded on the federal government's Pension Benefit Guarantee Corporation, freeing GM of the burden and forcing the US Government to pay for the whole stinking mess. Don't even try to figure how "W" will try to pay for that and give the country away to the highest campaign contributer. My sources for this were the Dayton (Ohio) Daily News and Money Magazine from some time in June of this year. (Delphi used to be DELCO which stood for Dayton ELctronic COmponents, I believe) Jeremy >>NeedforSwede2 <carl.robsonnospamcing-czechs.com> wrote: >> >>> ://www.autoindustry.co.uk/news/industry_news/11-10-05_3 >> >> >>What is this news of GM filing for chapter 11 on the 18th of October? >> >>SG >> > Currently just a business rumour that the business press and radio have > been picking up on. > > But Delphi, the former GM, and now independant parts company that is the > biggest supplier to GM, and has GM as it's biggest customer, is > definatley filling for Chapter 11 to allow it to continue trading and > try to work itself out of bancruptcy. > -- > Carl Robson > Car PC Build starts again. http://smallr.com/rz > Homepage: http://www.bouncing-czechs.com

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