IXLR8's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/165743/comments http://seekingalpha.com/article/117558-will-ford-survive-without-a-bailout?source=feed#comment-370765 370765 Fri, 30 Jan 2009 06:43:09 -0500 http://seekingalpha.com/article/106232-gm-bailout-would-be-agony-for-taxpayers?source=feed#comment-307825 307825

On Nov 16 04:33 PM Lazaris wrote:

>
> Hey John,
> Do you think that after the UAW takes over the retiree health care,
> the wages go down to $14.00, and some benefits are taken away, that
> the price of that vehicle will go down one dime? Do you really think
> that a penny of all that cost savings is going to be passed on to
> the consumer? Dream on, all that cost savings will just go to more
> CEO pay and bonuses to management and to shareholders.
> But you will sure be happy to see those autoworkers take that huge
> pay cut won't you?
>
> On Nov 16 02:18 PM JohnL wrote:]]> Mon, 17 Nov 2008 09:54:26 -0500

On Nov 16 04:33 PM Lazaris wrote:

>
> Hey John,
> Do you think that after the UAW takes over the retiree health care,
> the wages go down to $14.00, and some benefits are taken away, that
> the price of that vehicle will go down one dime? Do you really think
> that a penny of all that cost savings is going to be passed on to
> the consumer? Dream on, all that cost savings will just go to more
> CEO pay and bonuses to management and to shareholders.
> But you will sure be happy to see those autoworkers take that huge
> pay cut won't you?
>
> On Nov 16 02:18 PM JohnL wrote:]]> http://seekingalpha.com/article/106232-gm-bailout-would-be-agony-for-taxpayers?source=feed#comment-307806 307806
And what about that new Tundra pickup? $2 billion invested in the plant, way over budget. The poor Japanes manager who brought the Tundra to market 8 months late was fired back to Japan in disgrace. Then, they had three recalls on it in the first six months, including--like in the 70's--blown engines. Then, they had to slap $6000 rebates on them to get people to buy it. Now they have completely shut the plant down for 4 months because no one wants to buy the ugly thing.

Is this what you mean by Toyota efficiency? Or is it their plant in Indiana that is operating at 40% capacity because no one wants their minivan ot Highlander?

Your love for this really average company seems to not be based on facts.



On Nov 16 12:46 PM sportsmadness78 wrote:

> IXLR8 you dont have a case comparing Toyota with GM assembly and
> work ethics. GM does not even hold a candle to the efficiency of
> Toyota when it comes to auto assembly. GM has mis-managed its way
> to eventual shutdown and I dont give a damn. They caused their own
> misery. Remember the 70's. They produced Vega, Chevette, Monza ....
> cmon the company has no clue what the consumer wants when it comes
> to quality. Since the 70's Toyota still has the Corolla and Honda
> the Civic. So you see somebody has kept improving while the other
> became more ignorant.]]> Mon, 17 Nov 2008 09:41:25 -0500
And what about that new Tundra pickup? $2 billion invested in the plant, way over budget. The poor Japanes manager who brought the Tundra to market 8 months late was fired back to Japan in disgrace. Then, they had three recalls on it in the first six months, including--like in the 70's--blown engines. Then, they had to slap $6000 rebates on them to get people to buy it. Now they have completely shut the plant down for 4 months because no one wants to buy the ugly thing.

Is this what you mean by Toyota efficiency? Or is it their plant in Indiana that is operating at 40% capacity because no one wants their minivan ot Highlander?

Your love for this really average company seems to not be based on facts.



On Nov 16 12:46 PM sportsmadness78 wrote:

> IXLR8 you dont have a case comparing Toyota with GM assembly and
> work ethics. GM does not even hold a candle to the efficiency of
> Toyota when it comes to auto assembly. GM has mis-managed its way
> to eventual shutdown and I dont give a damn. They caused their own
> misery. Remember the 70's. They produced Vega, Chevette, Monza ....
> cmon the company has no clue what the consumer wants when it comes
> to quality. Since the 70's Toyota still has the Corolla and Honda
> the Civic. So you see somebody has kept improving while the other
> became more ignorant.]]> http://seekingalpha.com/article/106334-gm-must-die?source=feed#comment-307786 307786
.]]> Mon, 17 Nov 2008 09:24:38 -0500
.]]> http://seekingalpha.com/article/106232-gm-bailout-would-be-agony-for-taxpayers?source=feed#comment-307177 307177
PS GM MUST be selling the vehicles that people want to buy.

No manufacturer (Ford or Chrysler) or assembler (Toyota, Honda, Nissan, Hyundai, Mercedes, BMW, Mazda, Mitsubishi) sells more vehicles than GM each year.


]]> Sun, 16 Nov 2008 11:31:19 -0500
PS GM MUST be selling the vehicles that people want to buy.

No manufacturer (Ford or Chrysler) or assembler (Toyota, Honda, Nissan, Hyundai, Mercedes, BMW, Mazda, Mitsubishi) sells more vehicles than GM each year.


]]> http://seekingalpha.com/article/106232-gm-bailout-would-be-agony-for-taxpayers?source=feed#comment-307175 307175
Toyota has sut down its $2 Billion assembly plant where they assemble Tundra pick-ups. The new Lexus SUV's sales are down 50%. Seen the new Toyota Sequoia SUV? Me neither.

Now, there is even talk about Toyota dropping plans to assemble the Prius in the US. But, Benjamin says, Toyota is smart and GM is dumb.

Remember, Benjamin, GM employs more people in the US than all the imports combined.

If GM's labor costs are $73/hour, that's because they are paying the pensions and health care for 700,000 retirees and their families. GM's and Toyota's individual workers are paid approximately the same.

If you would prefer, cancel the pensions, and let them be funded by the Federal Pension Guarantee Corporation, which itself is $50 Billion underfunded to handle its present obligations.

I hope that Benjamin never needs a loan to pay for his house or car or to help his parents with their retirement or health care expenses.

.]]> Sun, 16 Nov 2008 11:27:52 -0500
Toyota has sut down its $2 Billion assembly plant where they assemble Tundra pick-ups. The new Lexus SUV's sales are down 50%. Seen the new Toyota Sequoia SUV? Me neither.

Now, there is even talk about Toyota dropping plans to assemble the Prius in the US. But, Benjamin says, Toyota is smart and GM is dumb.

Remember, Benjamin, GM employs more people in the US than all the imports combined.

If GM's labor costs are $73/hour, that's because they are paying the pensions and health care for 700,000 retirees and their families. GM's and Toyota's individual workers are paid approximately the same.

If you would prefer, cancel the pensions, and let them be funded by the Federal Pension Guarantee Corporation, which itself is $50 Billion underfunded to handle its present obligations.

I hope that Benjamin never needs a loan to pay for his house or car or to help his parents with their retirement or health care expenses.

.]]> http://seekingalpha.com/article/105679-do-the-automakers-deserve-a-bail-out?source=feed#comment-304540 304540
The most recent unfunded mandate from the Feds is estimated to cost the Big 3 about $100 Billion in just the next six years. To "help", the Feds agreed to 'loan' the Big 3 $25 Billion. (see the math here?)

So the government, representing the "common" folks should bailout GM and their compatriots--AND, AT THE SAME TIME--change some of the truly calamatous government regulations that have caused this mess. And remember, Nancy Pelosi has said that any aid to the automakers should come with strings, like no "golden parachutes".

Changes in the laws affecting the automaker should include:

1. Let the Big 3 shut down excess dealers and brands with no financial buyout (no golden parachutes).

Let the Big 3 get rid of the JOBS BANK and hourly employee buyouts (no golden parachutes).

Let the Big 3 get rid of the UAW.

Allow the Big 3 import small cars from low cost sources the same as the Japanese and Koreans do. NONE of these are is made in the US: Toyota (Yaris), Nissan (Versa), Kia (Rio), Hyundai (Excel) and Honda (Fit).

Also, anyone calling for the resignation of the Big 3 senior management without simultaneously calling for the resignation of the Union's Ron Gettlefinger and his leadership(?) team is deluded.


.

]]> Wed, 12 Nov 2008 17:33:44 -0500
The most recent unfunded mandate from the Feds is estimated to cost the Big 3 about $100 Billion in just the next six years. To "help", the Feds agreed to 'loan' the Big 3 $25 Billion. (see the math here?)

So the government, representing the "common" folks should bailout GM and their compatriots--AND, AT THE SAME TIME--change some of the truly calamatous government regulations that have caused this mess. And remember, Nancy Pelosi has said that any aid to the automakers should come with strings, like no "golden parachutes".

Changes in the laws affecting the automaker should include:

1. Let the Big 3 shut down excess dealers and brands with no financial buyout (no golden parachutes).

Let the Big 3 get rid of the JOBS BANK and hourly employee buyouts (no golden parachutes).

Let the Big 3 get rid of the UAW.

Allow the Big 3 import small cars from low cost sources the same as the Japanese and Koreans do. NONE of these are is made in the US: Toyota (Yaris), Nissan (Versa), Kia (Rio), Hyundai (Excel) and Honda (Fit).

Also, anyone calling for the resignation of the Big 3 senior management without simultaneously calling for the resignation of the Union's Ron Gettlefinger and his leadership(?) team is deluded.


.

]]> http://seekingalpha.com/article/105517-a-radical-solution-for-u-s-automakers?source=feed#comment-303778 303778
Truly a "Kumbaya" article.

Maybe, the author could write another one about how to end child abuse or how to end world hunger. No details, just good feelings....]]> Wed, 12 Nov 2008 07:12:21 -0500
Truly a "Kumbaya" article.

Maybe, the author could write another one about how to end child abuse or how to end world hunger. No details, just good feelings....]]> http://seekingalpha.com/article/105358-auto-industry-in-for-a-penny-in-for-a-pound?source=feed#comment-303425 303425
How, John Slater, would you handle the UAW, given the Democrats that the UAW has bought and are likely to stay bought?

How would you handle the fact that state and federal law prohibit the manufacturers from closing ANY dealership, even the rotten ones that you know and hate?

How would you handle the fact that the federal government requires US automakers to build small cars in the zero-profit US while allowing your beloved Japanese to import the Yaris, Fit and Versa from low cost sources?

How would you handle the approximately 1 million people that the BIG 3 are covering for health care? Cut them off?

How would you handle the nearly 600,000 pensions being paid by the Big 3? Dump them on the Pension Benefit Guarantee Corp. which is already $50 Billion underfunded?

How would you handle the most recent federal fuel and environmental mandates which will cost the Big 3 approximately $100 billion to meet within the next six years? PS The government arranged $25 Billion in loans, maybe sometime in 2010. (See the math here?)

Sorry, John Slater. 200 M&A activities with a combined value of $3 billion doesn't even get you a seat at the table for a Big 3 solution.


.]]> Tue, 11 Nov 2008 17:45:44 -0500
How, John Slater, would you handle the UAW, given the Democrats that the UAW has bought and are likely to stay bought?

How would you handle the fact that state and federal law prohibit the manufacturers from closing ANY dealership, even the rotten ones that you know and hate?

How would you handle the fact that the federal government requires US automakers to build small cars in the zero-profit US while allowing your beloved Japanese to import the Yaris, Fit and Versa from low cost sources?

How would you handle the approximately 1 million people that the BIG 3 are covering for health care? Cut them off?

How would you handle the nearly 600,000 pensions being paid by the Big 3? Dump them on the Pension Benefit Guarantee Corp. which is already $50 Billion underfunded?

How would you handle the most recent federal fuel and environmental mandates which will cost the Big 3 approximately $100 billion to meet within the next six years? PS The government arranged $25 Billion in loans, maybe sometime in 2010. (See the math here?)

Sorry, John Slater. 200 M&A activities with a combined value of $3 billion doesn't even get you a seat at the table for a Big 3 solution.


.]]> http://seekingalpha.com/article/105061-should-we-really-bail-out-the-big-three-automakers-with-73-20-per-hour-labor?source=feed#comment-301881 301881
If this guy has a PhD, then I am Einstein.

The $73 is NOT the employee's income, it is the cost to the Company for each hourly employee. This cost includes wages, employment taxes, benefits, AND legacy costs--health care and pensions for up to 1 million people.

Now, if all the posters here wish to kill the pensions for the retirees, fine. The PBGP is already underfunded by about $50 billion, so another taxpayer funded bail out for the PBGP will be required.

Medicare is in crisis due to chronic underfunding. If these 1 million people migrate to Medicare, another taxpayer funded bail out will be required.

It's OK, though. Niot to worry. The Messiah will fix it by taxing the rich.

.]]> Mon, 10 Nov 2008 10:37:27 -0500
If this guy has a PhD, then I am Einstein.

The $73 is NOT the employee's income, it is the cost to the Company for each hourly employee. This cost includes wages, employment taxes, benefits, AND legacy costs--health care and pensions for up to 1 million people.

Now, if all the posters here wish to kill the pensions for the retirees, fine. The PBGP is already underfunded by about $50 billion, so another taxpayer funded bail out for the PBGP will be required.

Medicare is in crisis due to chronic underfunding. If these 1 million people migrate to Medicare, another taxpayer funded bail out will be required.

It's OK, though. Niot to worry. The Messiah will fix it by taxing the rich.

.]]> http://seekingalpha.com/article/103438-ford-celebrates-gm-scratches-its-head?source=feed#comment-297725 297725
Also, it's a lot different buying a car assembled in America versus one made in America--engineering and manufacturing of components and the overall vehicle employ a lot more people than mere assembly.

Ford may wish to avoid unions if they could, but governments keep getting in the way. Should Ford raze all its factories in the states that require union membership to relocate to "right to work" states? What would be the short and long term cost of doing that?

Also, how does Ford get rid of its "excess" dealers when federal law prohibits them from closing ANY dealers, even including the lousy ones?

]]> Mon, 03 Nov 2008 22:25:38 -0500
Also, it's a lot different buying a car assembled in America versus one made in America--engineering and manufacturing of components and the overall vehicle employ a lot more people than mere assembly.

Ford may wish to avoid unions if they could, but governments keep getting in the way. Should Ford raze all its factories in the states that require union membership to relocate to "right to work" states? What would be the short and long term cost of doing that?

Also, how does Ford get rid of its "excess" dealers when federal law prohibits them from closing ANY dealers, even including the lousy ones?

]]> http://seekingalpha.com/article/103438-ford-celebrates-gm-scratches-its-head?source=feed#comment-296584 296584
Now, the good news is that Ford will get something out of these guys, instead of just paying them to sit on their cans and play cards.

The bad news for the unions guys is that they will have to actually do some work in exchange for the money.



.]]> Sun, 02 Nov 2008 17:12:14 -0500
Now, the good news is that Ford will get something out of these guys, instead of just paying them to sit on their cans and play cards.

The bad news for the unions guys is that they will have to actually do some work in exchange for the money.



.]]> http://seekingalpha.com/article/98269-auto-industry-recovery-once-again-postponed?source=feed#comment-273202 273202
Simply put, if Congress in their dubious wisdom requires any entity to do something for the common good, they should BE REQUIRED to cover the costs with taxpayer funds since the taxpayers benefit from the increase in the common good.

Up until now, we have had to eat a multitude of unfunded mandates, the most offensive being the requirement to sort through a tax code that has more words than the Bible. And, if a mistake is made, it's assumed that you are guilty--penalties include fines and jail time. The total cost of congressional and administration regulation on automobiles is well above $8,000 per car. And the taxpayer is paying for that TWICE--first through taxes and once again in the purchase price.

It's high time that congress remembered who signs their checks. ]]> Fri, 03 Oct 2008 22:31:09 -0400
Simply put, if Congress in their dubious wisdom requires any entity to do something for the common good, they should BE REQUIRED to cover the costs with taxpayer funds since the taxpayers benefit from the increase in the common good.

Up until now, we have had to eat a multitude of unfunded mandates, the most offensive being the requirement to sort through a tax code that has more words than the Bible. And, if a mistake is made, it's assumed that you are guilty--penalties include fines and jail time. The total cost of congressional and administration regulation on automobiles is well above $8,000 per car. And the taxpayer is paying for that TWICE--first through taxes and once again in the purchase price.

It's high time that congress remembered who signs their checks. ]]> http://seekingalpha.com/article/93226-ford-ripe-for-the-bottom-picking?source=feed#comment-241828 241828 Say, Horacio, the union contract was ratified almost a year ago.

Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


]]> Fri, 29 Aug 2008 14:47:35 -0400 Say, Horacio, the union contract was ratified almost a year ago.

Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


]]> http://seekingalpha.com/article/93226-ford-ripe-for-the-bottom-picking?source=feed#comment-241827 241827 Say, Horacio, the union contract was ratified almost a year ago.

Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


]]> Fri, 29 Aug 2008 14:47:35 -0400 Say, Horacio, the union contract was ratified almost a year ago.

Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


]]> http://seekingalpha.com/article/92255-automakers-seeking-billions-from-uncle-sam?source=feed#comment-237079 237079
Very strange!

Same article as yesterday, but with a different author's by-line.


]]> Sat, 23 Aug 2008 07:15:15 -0400
Very strange!

Same article as yesterday, but with a different author's by-line.


]]> http://seekingalpha.com/article/92142-sick-and-tired-of-financials-carmakers-blaming-everyone-but-themselves?source=feed#comment-236898 236898
I suppose that the author of this drivel has insurance policies to protect him financially when he does something bloody incompetent like driving into a tree or falling off a ladder while cleaning leaves from his gutters.

Can any fool get a job here writing columns?
]]> Fri, 22 Aug 2008 18:59:48 -0400
I suppose that the author of this drivel has insurance policies to protect him financially when he does something bloody incompetent like driving into a tree or falling off a ladder while cleaning leaves from his gutters.

Can any fool get a job here writing columns?
]]> http://seekingalpha.com/article/92255-automakers-seeking-billions-from-uncle-sam?source=feed#comment-236895 236895
Quite a misleading headline. The automakers are asking for loan guarantees, not cash.

Remember Chrysler in the old Lee Iaccocca days--they got a loan guarantee. They paid off the loan early, and the government got the interest.

This is likely far less risky than the government's unfunded pension, unfunded medicare and unfunded social security obligations. It's better for America than bailing out Freddie and Fannie ever was.

]]> Fri, 22 Aug 2008 18:55:16 -0400
Quite a misleading headline. The automakers are asking for loan guarantees, not cash.

Remember Chrysler in the old Lee Iaccocca days--they got a loan guarantee. They paid off the loan early, and the government got the interest.

This is likely far less risky than the government's unfunded pension, unfunded medicare and unfunded social security obligations. It's better for America than bailing out Freddie and Fannie ever was.

]]> http://seekingalpha.com/article/88498-leasing-and-the-big-three-automakers?source=feed#comment-220167 220167
Big Three, Big Three, Big Three... Are they are the only ones having trouble??

Why not report that BMW leases 60% of its total US sales and is trying to cut them back?

Audi is praying that its new A4 is not affected by lease problems--why isn't that in your article?

What about Lexus and Mercedes? Aren't their sales mostly leases and aren't their sales down sharply?

Looking forward to the other half of your column....


]]> Fri, 01 Aug 2008 10:44:48 -0400
Big Three, Big Three, Big Three... Are they are the only ones having trouble??

Why not report that BMW leases 60% of its total US sales and is trying to cut them back?

Audi is praying that its new A4 is not affected by lease problems--why isn't that in your article?

What about Lexus and Mercedes? Aren't their sales mostly leases and aren't their sales down sharply?

Looking forward to the other half of your column....


]]> http://seekingalpha.com/article/87929-impact-of-gm-destroying-the-ev1?source=feed#comment-219731 219731 Mr. Fitz, how many EV-1s did you lease? Why is it news that GM and Ford are presently adjusting their model mix to customer demand?

Toyota is reducing the production of its Tundra, which has proven to be a collosal waste of money for them. One year late in getting to market because they couldn't build the plant properly. They had to fire the Japanese plant manager. Then, the Tundra comes out and is hit with three recalls in the first year of production, including blown engines. To make their modest sales goal, they had to offer $6,000 rebates to get people to buy it.

Toyota this year launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales. Sales of their Siena minivan are down 50%.

I'm looking forward to reading your insightful analysis on Toyota's product failures.

]]> Thu, 31 Jul 2008 19:04:22 -0400 Mr. Fitz, how many EV-1s did you lease? Why is it news that GM and Ford are presently adjusting their model mix to customer demand?

Toyota is reducing the production of its Tundra, which has proven to be a collosal waste of money for them. One year late in getting to market because they couldn't build the plant properly. They had to fire the Japanese plant manager. Then, the Tundra comes out and is hit with three recalls in the first year of production, including blown engines. To make their modest sales goal, they had to offer $6,000 rebates to get people to buy it.

Toyota this year launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales. Sales of their Siena minivan are down 50%.

I'm looking forward to reading your insightful analysis on Toyota's product failures.

]]> http://seekingalpha.com/article/87378-ford-shareholders-face-high-potential-for-pain?source=feed#comment-219725 219725
Now, almost everyone in the automotive world is selling and/or producing in the US, and labor's cartel has lost its punch. Through the "jobs bank", the union was paid if there was work or not, so the companies kept producing and selling with rebates. The cost of union labor at the Big Three was about $75/hr, largely due to the pensions and retiree healthcare costs not borne by the new US producers.

Now, the union is on its knees. It has lost more than 500,000 jobs in the past decade that they are not getting back.

The "jobs bank", in which some workers sat without work but with pay for as much as 10 years, is gone.

Workers who are without work and refuse to relocate geographically to available work in another plant are fired.

They will be assuming responsibility for their own healthcare, through a fund established by each company at around 60 cents on the dollar. (At GM, the number 1 prescription drug was Viagra. You can bet the union won't continue that on their own dime.)

The companies can now hire new employees--up to 20% of its workforce--at $14/hr with no pension and no retiree healthcare cost.

That's why the companies are offering buyouts to get the high-paid to leave. And there is no shortage of applicants at $14/hr.

Ford has already cut $5 billion in annual costs, and by 2012--just a few years--will cut another $5 billion in cost.

Ford will make it, and those that get in and ride it up are going to have a great ride.]]> Thu, 31 Jul 2008 18:51:55 -0400
Now, almost everyone in the automotive world is selling and/or producing in the US, and labor's cartel has lost its punch. Through the "jobs bank", the union was paid if there was work or not, so the companies kept producing and selling with rebates. The cost of union labor at the Big Three was about $75/hr, largely due to the pensions and retiree healthcare costs not borne by the new US producers.

Now, the union is on its knees. It has lost more than 500,000 jobs in the past decade that they are not getting back.

The "jobs bank", in which some workers sat without work but with pay for as much as 10 years, is gone.

Workers who are without work and refuse to relocate geographically to available work in another plant are fired.

They will be assuming responsibility for their own healthcare, through a fund established by each company at around 60 cents on the dollar. (At GM, the number 1 prescription drug was Viagra. You can bet the union won't continue that on their own dime.)

The companies can now hire new employees--up to 20% of its workforce--at $14/hr with no pension and no retiree healthcare cost.

That's why the companies are offering buyouts to get the high-paid to leave. And there is no shortage of applicants at $14/hr.

Ford has already cut $5 billion in annual costs, and by 2012--just a few years--will cut another $5 billion in cost.

Ford will make it, and those that get in and ride it up are going to have a great ride.]]> http://seekingalpha.com/article/87929-impact-of-gm-destroying-the-ev1?source=feed#comment-219397 219397
So, maybe, they are taking your advice and are starting to think ahead--no more UAW, no more pensions, no more lifetime healthcare, etc. They are probably counting on guys like you to fund these things through your increased taxes.

]]> Thu, 31 Jul 2008 12:06:24 -0400
So, maybe, they are taking your advice and are starting to think ahead--no more UAW, no more pensions, no more lifetime healthcare, etc. They are probably counting on guys like you to fund these things through your increased taxes.

]]> http://seekingalpha.com/article/87929-impact-of-gm-destroying-the-ev1?source=feed#comment-219385 219385
With only 800 electric cars on the road (and going only 45 miles or so), the roads would never be crowded and would last forever, pollution would go to zero, CARB could furlough all their employees for a huge tax saving, etc., etc., etc.

It is really too bad that GM didn't think of that way back when.

And, since GM would have offered only 800 of these cars, why, Toyota--with their mega-brain management, Honda and Nissan--mighty Japanese companies with really smart management--would have quickly joined suit and each produced their version of 800 electric cars. What a wonderful world we could have had!

You do fail to mention that even the Toyota Prius (I know, I know--it's only a hybrid) wasn't selling in volume until the US government took your tax money and gave a rebate to someone who bought one. How exaclty does that improve our balance of payments?

]]> Thu, 31 Jul 2008 11:57:32 -0400
With only 800 electric cars on the road (and going only 45 miles or so), the roads would never be crowded and would last forever, pollution would go to zero, CARB could furlough all their employees for a huge tax saving, etc., etc., etc.

It is really too bad that GM didn't think of that way back when.

And, since GM would have offered only 800 of these cars, why, Toyota--with their mega-brain management, Honda and Nissan--mighty Japanese companies with really smart management--would have quickly joined suit and each produced their version of 800 electric cars. What a wonderful world we could have had!

You do fail to mention that even the Toyota Prius (I know, I know--it's only a hybrid) wasn't selling in volume until the US government took your tax money and gave a rebate to someone who bought one. How exaclty does that improve our balance of payments?

]]> http://seekingalpha.com/article/83724-challenge-for-ford-and-gm-to-stay-in-business?source=feed#comment-198096 198096
Well, Mr. Shedlock, you should also report that in the labor negotiations last fall (that's right, only about eight months ago) Ford proposed to the UAW that it would close the plant that makes the 35MPG Focus because sales were so dismal. The two sides agreed to new terms to keep the plant open. Now, of course, it is running maximum overtime on two shifts and will soon move to three shifts.

Truck plants are the inverse with $4 gas.

Mr. Shedlock similarly does not report that the vaunted Toyota is also losing money in the US as its Tundra pickup, Sequoia SUV and Sienna Minivan sales have fallen apart. Indeed, it's TX plant is running at about 70% of capacity and its IN plant is at 45% of capacity.

Weak article, poorly researched.

]]> Thu, 03 Jul 2008 12:57:58 -0400
Well, Mr. Shedlock, you should also report that in the labor negotiations last fall (that's right, only about eight months ago) Ford proposed to the UAW that it would close the plant that makes the 35MPG Focus because sales were so dismal. The two sides agreed to new terms to keep the plant open. Now, of course, it is running maximum overtime on two shifts and will soon move to three shifts.

Truck plants are the inverse with $4 gas.

Mr. Shedlock similarly does not report that the vaunted Toyota is also losing money in the US as its Tundra pickup, Sequoia SUV and Sienna Minivan sales have fallen apart. Indeed, it's TX plant is running at about 70% of capacity and its IN plant is at 45% of capacity.

Weak article, poorly researched.

]]> http://seekingalpha.com/article/79918-gm-calls-the-top-for-oil?source=feed#comment-178786 178786
Toyota just launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales.

I'm looking forward to reading your insightful analysis on Toyota's product failures.]]> Tue, 03 Jun 2008 18:17:49 -0400
Toyota just launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales.

I'm looking forward to reading your insightful analysis on Toyota's product failures.]]> http://seekingalpha.com/article/71687-why-auto-stocks-are-an-easy-short?source=feed#comment-148042 148042
I always get a kick out of auto industry analysts who have ALL the answers abouit how to run a car company but likely cant even change their own oil or spark plugs. ]]> Thu, 10 Apr 2008 00:03:33 -0400
I always get a kick out of auto industry analysts who have ALL the answers abouit how to run a car company but likely cant even change their own oil or spark plugs. ]]> http://seekingalpha.com/article/69194-jim-cramer-s-mad-money-lightning-round-3-18-08-apple-ripe-for-picking?source=feed#comment-128801 128801 Wed, 19 Mar 2008 11:41:30 -0400