GM_Ford_Chrysler Bailout

[Greg E]

Buzz, as long as someone needs a part there will be someone out there making it. Go to any parts store and look at all the generic parts. Not many people (except dealerships) use the expensive ones. We didn't cause them to fail. Like someone else said, new, better run companies will emerge from this.

[Marvin S]

- Hey that's OK!

For those who don't have this feature, that is the surprised feature, & I'm not at the effort going to spin this as acceptable. George Will has an editorial on the bailout, basically saying we are asking the taxpayer to pick up the failed model of our Auto industry which includes the union greed.

You can't pay people for doing nothing & expect a profit. The money that has gone into this absurd benefit alone would have allowed the companies to manage to a better product. & beyond that, what person with a modicum of self respect would want to continue employment in that culture.

I just had to try out my new feature, Thanks Chris!

Buzz - Why don't you put up that chart again showing the wage disparities?

[Uncle Bill]

Here's an interesting 'recall'. I you haven't seen it before, enjoy.

UB


A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rower. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India

Sadly, The End.

Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US.

The last quarter's results: TOYOTA made 4 billion in profits while Ford racked up 9 billion in losses.Ford folks are still scratching their heads.

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY

[badbullgator]

You forgot to mention that the American team was paid $499/hr becasue of union demands and that the union also determined that the one pesron doing the rowing had to have a break after every 50 strokes.....

[Pete]

UB
That was a great analogy.
I think they learned that from the government.
If they did get the 25 billion they would blow it like a drunken sailor and would be beggin for more. We live in a country with a welfare mentality.

Pete

[Marvin S]

On a different note. My wife & I have been running an enterprise for many years. We assessed the outlook & planned accordingly, while our household would not have the temporary impact that a poorly run business would, it's the same on a smaller scale.

The vehicle manufacturers, suppliers & dealers dealers have had years to assess the impact of their poor choices & chose not to do anything.

We own 2 fairly new GM vehicles (this AM we get an e-mail from GM asking us to lobby our congressman) which means we have paid for some of their folly. We will only contact someone to support NO bailout. We also own shares of F, on the recommend of our son, & believe they all need to change their business model.

[Steve Amrein]

To me its simple if it were worth saving in its current state and the stock value of almost nothing Warren Buffet would come in and buy it. Its obvious in its current state it will fail with or without the bailout $$ Without compromises from the union, management and the CAFE issues this will not end pretty. Even Helen Keller could at least tell when a freight train is coming. Did anyone see the movie "Gung Ho" even though a comedy it was quite telling. I heard on the news yesterday that GM in a effort to save some money they were not paying the dealer incentives.

[badbullgator]

To me its simple if it were worth saving in its current state and the stock value of almost nothing Warren Buffet would come in and buy it. Its obvious in its current state it will fail with or without the bailout $$ Without compromises from the union, management and the CAFE issues this will not end pretty. Even Helen Keller could at least tell when a freight train is coming. Did anyone see the movie "Gung Ho" even though a comedy it was quite telling. I heard on the news yesterday that GM in a effort to save some money they were not paying the dealer incentives.

Very good point Steve. If it were worth saving someone/company/ conglomeration would step up and do so in order to make a profit. Nobody but the gooberment would waste money on them and they outdated and very poor business plan. The government has less of a problem giving it to them because it is NOT THEIR MONEY, and it looks like we are in for a big welfare form of government for at least the next four years. If it was worth anything don’t you think China or some Saudi company would already be talking with GM/Ford/Chrysler ?? There are a lot of people and companies in this world that could buy them out, or at least a controlling share without batting an eye.
This goes back to my point that if they do fail someone will step up and fill the void. People need cars and someone will be able to manufacture and sell them at a profit and the world is full of people that are looking to do just that.

[Buzz]

We own 2 fairly new GM vehicles

I am sure you realize that if those vehicles are under warranty, once they file bankruptcy, your warranty is gone. When I recently bought a vehicle, warranty was one of my considerations. It appears that warranty was the last thing I should have been looking at.

[Buzz]

Buzz, as long as someone needs a part there will be someone out there making it. Go to any parts store and look at all the generic parts. Not many people (except dealerships) use the expensive ones. We didn't cause them to fail. Like someone else said, new, better run companies will emerge from this.

Replacement parts manufacture will be the FIRST thing to go away.