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Re: I don't understand why GM took so long ...... Posted by Adam [Email] (#344) [Profile/Gallery] (more from Adam) on Tue, 2 Dec 2008 14:36:03 In Reply to: I don't understand why GM took so long ......, TKC, Tue, 2 Dec 2008 13:51:05 Members do not see ads below this line. - Help Keep This Site Online - Signup |
The reason is that GM is utterly clueless.
They could have sold Saab (and Saturn which should be next - they have never made a dime on Saturn) a year ago and made money.
GM is simply too big and dumb and can't function in a 12-14M annual auto sales environment. They have finally admitted as much and in their filing for a bailout said they will need more money if sales don't increase. EARTH to GM - sales won't be back to 16M plus for at least five years.
They are 4 weeks away from insolvency unless they get gov money NOW (they admit it) but Wagoner has MADE NO PLANS for bankruptcy. Huh? How is he protecting shareholders and workers?
Bankruptcy reorg is the only answer to enable them to quickly get to the right size. Any money the gov gives them will be lost as they will go to BK sooner or later.
If they are really in such trouble, why not do this (all of which could be done in a few days in BK):
1. All white collar workers have 20% pay cut starting NOW.
2. All blue collar workers have 10% pay cut NOW.
3. Jobs bank ends in three months.
4. Top 50 executives get no bonus, deferred comp, nothing but base pay until loans are paid back.
5. Hold an auction next week to sell Saab, Hummer, and Saturn.
posted by 96.226.15...
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