Joey

How to Deal with the Automakers' Crisis in Confidence

Well Said Douglas. I could not agree with you more.Why the board of directors has not moved is beyond me. Maybe the SEC (or better yet - the greek whistle blower who reported the Madoff case should investigate). Any big players out there that what to use some of their funds to hire the whistle blower to find out why GM's CEO and upper management has not been fired by the board of directors? Is there some relationship between Pfizer, Dupont, the University of North Carolina, the University System of Georgia, Sara Lee, etc. (companies where the GM's BOD work at) that the board of directors has not done their jobs yet?

Douglas Korthof 33 Comments WebsiteAny money given to GM must be on condition that ALL current management be FIRED and replaced with competent execs.

It's not the union that brought GM down, it's stupid management that thinks it needs to shrink.

Incompetent bozos like Wagoner and Lutz.

Auto Manufacturing: What Does 'Buy American' Even Mean?

User 158164, what would your plan be to cut $2 billion dollars a month (or 24 billion dollars a year) out of GM's budget then? Be specific. Also, what do you think of a CEO who has dropped his share from $64 a share when he started to less than $3 today? Would you keep him and why or why not?

Auto Manufacturing: What Does 'Buy American' Even Mean?

eddie6442, good point. I think Ross Perot would make an excellent Chairman and CEO of GM. He is not a "yes man". Something that GM has not seen since Ross was there. GM will be an example of a great case study of poor management - what not to do when running a company (in regards to blind obiedence and thinktank).

Auto Manufacturing: What Does 'Buy American' Even Mean?

GM is bleeding over $2 billion dollars a month. No matter how poorly run GM is, they still keep the BOD still keep the CEO and his henchmen. If I were CEO, I would get rid of many of the white collar workforce. I would clear out almost the entire body of unclassified workers (workers who make around $300,000 a year - and believe me, there are thousands of them). I would then cut the level 8 employees by 50% - moving the other 50% to the unclassified workers spots (these workers make around $150,000 a year). I would get rid of around 25% of the level 7 employees promoting them to the level 8 employees jobs. I would get rid of 50% of the people who work out of the Renissance building and would close 3 of the 5 regional offices. The remaining 2 regional offices can do the work of the 5. It is the same jobs out of the regional office - only instead of sending 1,000 emails to dealers they are sending 3,000 emails to dealers. Bleeding 2 billion dollars a month takes dramatic action. Also, in regards to insurance - I would take all of the planned surgeries (which is around 75% of the surgeries) and fly the people needing surgery to India for a week to get their hip replacements and cancer surgeries such as bone marrow transplants there.

As GM Goes, So Goes the Nation (Part 2)

GM is bleeding over $2 billion dollars a month. No matter how poorly run GM is, they still keep the BOD still keep the CEO and his henchmen. If I were CEO, I would get rid of many of the white collar workforce. I would clear out almost the entire body of unclassified workers (workers who make around $300,000 a year - and believe me, there are thousands of them). I would then cut the level 8 employees by 50% - moving the other 50% to the unclassified workers spots (these workers make around $150,000 a year). I would get rid of around 25% of the level 7 employees promoting them to the level 8 employees jobs. I would get rid of 50% of the people who work out of the Renissance building and would close 3 of the 5 regional offices. The remaining 2 regional offices can do the work of the 5. It is the same jobs out of the regional office - only instead of sending 1,000 emails to dealers they are sending 3,000 emails to dealers. Bleeding 2 billion dollars a month takes dramatic action. Also, in regards to insurance - I would take all of the planned surgeries (which is around 75% of the surgeries) and fly the people needing surgery to India for a week to get their hip replacements and cancer surgeries such as bone marrow transplants there.

GM May Be Considering Bankruptcy (at Last)

Why does someone who drops the stock from $64 to $2.50 still CEO? I thought the board of directors were suppose to protect investors - where is the SEC? Here are the list of board of directors at GM. We should write and ask, "Why are you not doing your job in getting rid of Rick Wagoner?" Also, some of the BOD are on Universities. Did GM donate money to their universities to keep the Chancellors quiet?
GM Board of Directors
Percy N. Barnevik; Erskine B. Bowles; John H. Bryan; Armando M. Codina; Erroll B. Davis, Jr.; George M.C. Fisher; Karen Katen; Kent Kresa; Ellen J. Kullman; Kathryn V. Marinello;

GM May Be Considering Bankruptcy (at Last)

Why does someone who drops the stock from $64 to $2.50 still CEO? I thought the board of directors were suppose to protect investors - where is the SEC? Here are the list of board of directors at GM. We should write and ask, "Why are you not doing your job in getting rid of Rick Wagoner?" Also, some of the BOD are on Universities. Did GM donate money to their universities to keep the Chancellors quiet?

GM Board of Directors
Percy N. Barnevik; Erskine B. Bowles; John H. Bryan; Armando M. Codina; Erroll B. Davis, Jr.; George M.C. Fisher; Karen Katen; Kent Kresa; Ellen J. Kullman; Kathryn V. Marinello;

When Will GM Hit Zero?

Why does someone who drops the stock from $64 to $2.50 still CEO? I thought the board of directors were suppose to protect investors - where is the SEC? Here are the list of board of directors at GM. We should write and ask, "Why are you not doing your job in getting rid of Rick Wagoner?" Also, some of the BOD are on Universities. Did GM donate money to their universities to keep the Chancellors quiet?

GM Board of Directors
Percy N. Barnevik; Erskine B. Bowles; John H. Bryan; Armando M. Codina; Erroll B. Davis, Jr.; George M.C. Fisher; Karen Katen; Kent Kresa; Ellen J. Kullman; Kathryn V. Marinello;

When Will GM Hit Zero?

Why does someone who drops the stock from $64 to $2.50 still CEO? I thought the board of directors were suppose to protect investors - where is the SEC? Here are the list of board of directors at GM. We should write and ask, "Why are you not doing your job in getting rid of Rick Wagoner?" Also, some of the BOD are on Universities. Did GM donate money to their universities to keep the Chancellors quiet?


GM Board of Directors
Percy N. Barnevik; Erskine B. Bowles; John H. Bryan; Armando M. Codina; Erroll B. Davis, Jr.; George M.C. Fisher; Karen Katen; Kent Kresa; Ellen J. Kullman; Kathryn V. Marinello;

When Will GM Hit Zero?

Here are GM's board of directors. Everyone should write a letter to them and ask, "Why does a guy who dropped the share value from $64 to $2.50 still stay on as CEO?". Are the shareholders suppose to represent the stockholders - maybe if the SEC was not so lazy and weak something would be done.

GM Board of Directors
Percy N. Barnevik; Erskine B. Bowles; John H. Bryan; Armando M. Codina; Erroll B. Davis, Jr.; George M.C. Fisher; Karen Katen; Kent Kresa; Ellen J. Kullman; ,Philip A. Laskawy; Kathryn V. Marinello; Eckhard Pfeiffer;

Chrysler / Fiat Deal Is Horrible for GM and Ford

Right before Rick Wagoner took office, GM's share was $64 (in 2001). Now it is less than $4 per share. If a woman was CEO instead of Rick Wagoner during this time, would she still have a job? If not, then why should a man like Rick Wagoner still have a job? Also, if a woman was CMO of GM and the sales, market share, and shares tanked, would she still be employed? If not, then why should a man get to keep his job?

Detroit's Failure and the Dollar

If I were the car czar, here are some of the plans I would do to restructure GM.
How to Fix GM – Plan One
1) Sell All of GMAC and the Insurance Business (Ditech)
2) Cut down from five regional offices to two. One in Atlanta (east of the Mississippi River)and one in LA (west of Mississippi River). That means Chicago, New York, and Dallas are closed. With about 250 people working in each location (750 total) at an average of $100,000 each, that is a yearly savings of $75 million. Operation cost (rent, equipment, etc.) at the three locations will save another $1.8 million. Benefits for the 750 employees will save another (at $20,000 each) another $15 million.
3) Next, there is an average of three offices per state (local offices in cities across the country), if we close them, that is another $3 million in office space.
4) Next, the District Managers work out of their house and the Zone Managers (or whatever term is given to them), could be let go. They make around $150,000 a year and there are about 75 of them. Again, a savings of $11.25 million. With benefits, a total of $12.75 million in savings.
5) Next, cut around 150 jobs at the Detroit GM Headquarters. A savings of around $18 million with benefits.
6) Next, cut Buick down to two cars (Enclave and Lucerne), cut Pontiac to one (G6), cut GMC to two (Yukon and Sierra), cut Saturn to one (Vue) – and put all cars to a new umbrella called “United GM”. This will save GM billions. Also cut back on two Chevy models and two Cadillac models.
7) Next, cut advertising in December, January, February, March, April, and May (with the exception of auto show advertising for a three week period during the show and its incentives). This will save GM around $1.4 billion.
8) Sell all five planes. This will save GM $100 million in sales and another $100 million in yearly travel expenses for a total savings of $200 million dollars.
9) Change the Union rule from 90% of pay for one year if someone is laid off to 70%of pay for 9 months. This alone, if an employee was making $72,800 a year (which is equal to $35 per hour), this would save GM $27,300 per union employee laid off. If there are around 30,000 union employees laid off from the brands closing, that is a savings of $819 million dollars .
10) Get rid of any health care benefits for those 65 and over. Medicare will cover them.
11) Change the 90% of pay for a year factory workers laid off to 70% of pay for seven months. At a salary of about $75,000, this will be a savings of $36,875 per employee. For every 10,000 people laid off, this will be a savings of $369 million.


Plan Two on Fixing GM
How to save GM
1) GM needs to cut their total car models to 25 (from 60). What they could do is get rid of all Buicks expect Lucerne and Enclave; get rid of all Pontiacs except G6; get rid of all GMCs except Sierra and Yukon; get rid of all Saturns except the Vue; get rid of Saab all together; get rid of at least three Chevy models; get rid of at least two Cadillac models.
2) Get rid of half the dealerships. Chevy seems to have the best distribution so change the Chevy dealerships to Chevy, BPG, Saturn, and Cadillac
3) Close at least three of the five regional offices
4) Close all Zone offices and have employees work out of their homes
5) Get rid of 50% or more of white collar workers in the field
6) The factories will close based upon which models will be discontinued
7) Have upper management take a 35% pay cut
8) Have middle management take a 20% pay cut
9) Cut advertising from $2.3 billion per year to $750 million
10) Get rid of advertising groups and have national advertising only
11) Get rid of co-op advertising dollars
12) Get rid of all promotional advertising
13) Cut all regional and national meetings that cost more than $100,000
14) No parties for auto shows
15) Have special cash incentives for cash only purchases
16) Once the Volt battery is discovered, convert at least half the cars and trucks left after the cut to Hybrid
17) Move 1/2 the engineers to be used to discover more fuel efficient standards and more alternative fuel / hybrid cars
18) Sell all five planes and travel coach (a $100 million savings from cost of planes and a $100 million savings in yearly air cost for a total savings of $200 million).
19) Change the Union rule from 90% of pay for one year if someone is laid off to 70%of pay for 9 months. This alone, if an employee was making $72,800 a year (which is equal to $35 per hour), this would save GM $27,300 per union employee laid off. If there are around 30,000 union employees laid off from the brands closing, that is a savings of $819 million dollars .

Auto Industry Rescue Delays the Inevitable

I would like to be the car czar. Mahony, per your question, GM is suppose to make $4,000 profit per car and $6,000 profit per truck. Why they are doing so poorly is beyond me. Here are two plans I put together.

How to Fix GM – Plan One
1) Sell All of GMAC and the Insurance Business (Ditech)
2) Cut down from five regional offices to two. One in Atlanta (east of the Mississippi River)and one in LA (west of Mississippi River). That means Chicago, New York, and Dallas are closed. With about 250 people working in each location (750 total) at an average of $100,000 each, that is a yearly savings of $75 million. Operation cost (rent, equipment, etc.) at the three locations will save another $1.8 million. Benefits for the 750 employees will save another (at $20,000 each) another $15 million.
3) Next, there is an average of three offices per state (local offices in cities across the country), if we close them, that is another $3 million in office space.
4) Next, the District Managers work out of their house and the Zone Managers (or whatever term is given to them), could be let go. They make around $150,000 a year and there are about 75 of them. Again, a savings of $11.25 million. With benefits, a total of $12.75 million in savings.
5) Next, cut around 150 jobs at the Detroit GM Headquarters. A savings of around $18 million with benefits.
6) Next, cut Buick down to two cars (Enclave and Lucerne), cut Pontiac to one (G6), cut GMC to two (Yukon and Sierra), cut Saturn to one (Vue) – and put all cars to a new umbrella called “United GM”. This will save GM billions. Also cut back on two Chevy models and two Cadillac models.
7) Next, cut advertising in December, January, February, March, April, and May (with the exception of auto show advertising for a three week period during the show and its incentives). This will save GM around $1.4 billion.
8) Sell all five planes. This will save GM $100 million in sales and another $100 million in yearly travel expenses for a total savings of $200 million dollars.
9) Change the Union rule from 90% of pay for one year if someone is laid off to 70%of pay for 9 months. This alone, if an employee was making $72,800 a year (which is equal to $35 per hour), this would save GM $27,300 per union employee laid off. If there are around 30,000 union employees laid off from the brands closing, that is a savings of $819 million dollars .
10) Get rid of any health care benefits for those 65 and over. Medicare will cover them.
11) Change the 90% of pay for a year factory workers laid off to 70% of pay for seven months. At a salary of about $75,000, this will be a savings of $36,875 per employee. For every 10,000 people laid off, this will be a savings of $369 million.
Plan Two on Fixing GM
How to save GM
1) GM needs to cut their total car models to 25 (from 60). What they could do is get rid of all Buicks expect Lucerne and Enclave; get rid of all Pontiacs except G6; get rid of all GMCs except Sierra and Yukon; get rid of all Saturns except the Vue; get rid of Saab all together; get rid of at least three Chevy models; get rid of at least two Cadillac models.
2) Get rid of half the dealerships. Chevy seems to have the best distribution so change the Chevy dealerships to Chevy, BPG, Saturn, and Cadillac
3) Close at least three of the five regional offices
4) Close all Zone offices and have employees work out of their homes
5) Get rid of 50% or more of white collar workers in the field
6) The factories will close based upon which models will be discontinued
7) Have upper management take a 35% pay cut
8) Have middle management take a 20% pay cut
9) Cut advertising from $2.3 billion per year to $750 million
10) Get rid of advertising groups and have national advertising only
11) Get rid of co-op advertising dollars
12) Get rid of all promotional advertising
13) Cut all regional and national meetings that cost more than $100,000
14) No parties for auto shows
15) Have special cash incentives for cash only purchases
16) Once the Volt battery is discovered, convert at least half the cars and trucks left after the cut to Hybrid
17) Move 1/2 the engineers to be used to discover more fuel efficient standards and more alternative fuel / hybrid cars
18) Sell all five planes and travel coach (a $100 million savings from cost of planes and a $100 million savings in yearly air cost for a total savings of $200 million).
19) Change the Union rule from 90% of pay for one year if someone is laid off to 70%of pay for 9 months. This alone, if an employee was making $72,800 a year (which is equal to $35 per hour), this would save GM $27,300 per union employee laid off. If there are around 30,000 union employees laid off from the brands closing, that is a savings of $819 million dollars .

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

How to Fix GM – Plan One
1) Sell All of GMAC and the Insurance Business (Ditech)
2) Cut down from five regional offices to two. One in Atlanta (east of the Mississippi River)and one in LA (west of Mississippi River). That means Chicago, New York, and Dallas are closed. With about 250 people working in each location (750 total) at an average of $100,000 each, that is a yearly savings of $75 million. Operation cost (rent, equipment, etc.) at the three locations will save another $1.8 million. Benefits for the 750 employees will save another (at $20,000 each) another $15 million.
3) Next, there is an average of three offices per state (local offices in cities across the country), if we close them, that is another $3 million in office space.
4) Next, the District Managers work out of their house and the Zone Managers (or whatever term is given to them), could be let go. They make around $150,000 a year and there are about 75 of them. Again, a savings of $11.25 million. With benefits, a total of $12.75 million in savings.
5) Next, cut around 150 jobs at the Detroit GM Headquarters. A savings of around $18 million with benefits.
6) Next, cut Buick down to two cars (Enclave and Lucerne), cut Pontiac to one (G6), cut GMC to two (Yukon and Sierra), cut Saturn to one (Vue) – and put all cars to a new umbrella called “United GM”. This will save GM billions. Also cut back on two Chevy models and two Cadillac models.
7) Next, cut advertising in December, January, February, March, April, and May (with the exception of auto show advertising for a three week period during the show and its incentives). This will save GM around $1.4 billion.
8) Sell all five planes. This will save GM $100 million in sales and another $100 million in yearly travel expenses for a total savings of $200 million dollars.

Plan Two on Fixing GM
How to save GM
1) GM needs to cut their total car models to 25 (from 60). What they could do is get rid of all Buicks expect Lucerne and Enclave; get rid of all Pontiacs except G6; get rid of all GMCs except Sierra and Yukon; get rid of all Saturns except the Vue; get rid of Saab all together; get rid of at least three Chevy models; get rid of at least two Cadillac models.
2) Get rid of half the dealerships. Chevy seems to have the best distribution so change the Chevy dealerships to Chevy, BPG, Saturn, and Cadillac
3) Close at least three of the five regional offices
4) Close all Zone offices and have employees work out of their homes
5) Get rid of 50% or more of white collar workers in the field
6) The factories will close based upon which models will be discontinued
7) Have upper management take a 35% pay cut
8) Have middle management take a 20% pay cut
9) Cut advertising from $2.3 billion per year to $750 million
10) Get rid of advertising groups and have national advertising only
11) Get rid of co-op advertising dollars
12) Get rid of all promotional advertising
13) Cut all regional and national meetings that cost more than $100,000
14) No parties for auto shows
15) Have special cash incentives for cash only purchases
16) Once the Volt battery is discovered, convert at least half the cars and trucks left after the cut to Hybrid
17) Move 1/2 the engineers to be used to discover more fuel efficient standards and more alternative fuel / hybrid cars
18) Sell all five planes and travel coach (a $100 million savings from cost of planes and a $100 million savings in yearly air cost for a total savings of $200 million).

Friday Options Update: C, GM, F, GE, CHK, AEM

How to Fix GM – Plan One
1) Sell All of GMAC and the Insurance Business (Ditech)
2) Cut down from five regional offices to two. One in Atlanta (east of the Mississippi River)and one in LA (west of Mississippi River). That means Chicago, New York, and Dallas are closed. With about 250 people working in each location (750 total) at an average of $100,000 each, that is a yearly savings of $75 million. Operation cost (rent, equipment, etc.) at the three locations will save another $1.8 million. Benefits for the 750 employees will save another (at $20,000 each) another $15 million.
3) Next, there is an average of three offices per state (local offices in cities across the country), if we close them, that is another $3 million in office space.
4) Next, the District Managers work out of their house and the Zone Managers (or whatever term is given to them), could be let go. They make around $150,000 a year and there are about 75 of them. Again, a savings of $11.25 million. With benefits, a total of $12.75 million in savings.
5) Next, cut around 150 jobs at the Detroit GM Headquarters. A savings of around $18 million with benefits.
6) Next, cut Buick down to two cars (Enclave and Lucerne), cut Pontiac to one (G6), cut GMC to two (Yukon and Sierra), cut Saturn to one (Vue) – and put all cars to a new umbrella called “United GM”. This will save GM billions. Also cut back on two Chevy models and two Cadillac models.
7) Next, cut advertising in December, January, February, March, April, and May (with the exception of auto show advertising for a three week period during the show and its incentives). This will save GM around $1.4 billion.
8) Sell all five planes. This will save GM $100 million in sales and another $100 million in yearly travel expenses for a total savings of $200 million dollars.
Plan Two on Fixing GM
How to save GM
1) GM needs to cut their total car models to 25 (from 60). What they could do is get rid of all Buicks expect Lucerne and Enclave; get rid of all Pontiacs except G6; get rid of all GMCs except Sierra and Yukon; get rid of all Saturns except the Vue; get rid of Saab all together; get rid of at least three Chevy models; get rid of at least two Cadillac models.
2) Get rid of half the dealerships. Chevy seems to have the best distribution so change the Chevy dealerships to Chevy, BPG, Saturn, and Cadillac
3) Close at least three of the five regional offices
4) Close all Zone offices and have employees work out of their homes
5) Get rid of 50% or more of white collar workers in the field
6) The factories will close based upon which models will be discontinued
7) Have upper management take a 35% pay cut
8) Have middle management take a 20% pay cut
9) Cut advertising from $2.3 billion per year to $750 million
10) Get rid of advertising groups and have national advertising only
11) Get rid of co-op advertising dollars
12) Get rid of all promotional advertising
13) Cut all regional and national meetings that cost more than $100,000
14) No parties for auto shows
15) Have special cash incentives for cash only purchases
16) Once the Volt battery is discovered, convert at least half the cars and trucks left after the cut to Hybrid
17) Move 1/2 the engineers to be used to discover more fuel efficient standards and more alternative fuel / hybrid cars
18) Sell all five planes and travel coach (a $100 million savings from cost of planes and a $100 million savings in yearly air cost for a total savings of $200 million).