Salty

GM Bondholders Think They Deserve More Equity: Where to Begin?

Now the question becomes:
Since the workerbees are the ones who really know what can be done to improve production, reliability, and so on, will they, as majority owners, make GM become the powerhouse manufacturer it can be?
The work rules imposed by the union have been the major impediment to viability for a couple of generations.

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

Suggestion:
Replace the exorbitant wage packages with stock share grants. Likewise the pension packages. Then watch the overfed unions wither on the vine. Owners have a vested and perceived interest in the company doing well, vs. the current grab for whatever the union leaderws tell them is there.


On Nov 13 07:07 AM skipper wrote:

> Couple of thoughts from a Brit living in Brazil
>
> 1) Do you remember Bedford, Austin, Morris, Triumph, Rover,Hillman,Consul
> ? Probably not. They were all British car companies that were unable
> to compete on quality and price. The government tried to keep them
> alive (through British Leyland) but in the end 'let them go'. The
> root of the problem lay in short-sighted incompetent management and
> short-sighted arrogant unions. At the time it was almost tragic but
> the country soon recovered and opened its eyes to the world beyond
> the shores of not-so-Great Britain
>
> 2) Up until 1990 Ford, GM, VW + Fiat had a monopoly on car production
> in Brazil. They would import 20 year old machine-stamps from Europe
> or the USA of a faded-out model and then launch it in Brazil as a
> new model. When the Government said 'enough' and opened the market
> to allcomers, the big four and the unions screamed and kicked alleging
> mass unemployment and shutdowns. The opposite has happened. In spite
> of a big influx of new players building plants in Brazil (Renault,
> Honda, Toyota, Peugeot, Nissan), the previous big four are now producing
> first class cars in greater numbers than ever and employment in the
> industry has more than doubled. Car parts produced in Brazil are
> exported to assembly plants world wide.
>
> My conclusions (you may reach your own). A country cannot afford
> to be insular. The world is globalised whether you like it or not
> so instead of fighting it, take advantage of it. You cannot look
> at your market as being the good old US of A. Your market is the
> world market. You have to get over and beyond the traditional antagonism
> of labour versus management otherwise you will and should sink. The
> Brazilian car industry has strong unions but they work together with
> management. The President of this country organised the Metalworkers
> union during the dictatorship - and far from being the left wing
> demon we expected has turned out to be a terrific mediator between
> all the myriad interests involved in keeping a huge economy on the
> move.
>
> At times like this a country needs a leader and a statesman. Bush
> clearly failed on both counts so let's now be optimistic about the
> 'change' that has been promised. If the price to pay is to let Detroit
> sink then so be it but with a lot of 'give' from all parties that
> shouldnt be necessary.