Miken

Court Orders Against Gifting Delphi to Platinum

With the benefit of hindsight, the objection to the Platinum deal seems to be much ado about nothing. In spite of all the whoopla, NOBODY put in a competing bid.

Hilarious!!

Court Orders Against Gifting Delphi to Platinum

This will end when American labor rates are once again competitive,i.e., will overcome the freight costs to ship here from a low cost country. Not before. Seems so simple to me, but most people still don't get it. It should be obvious to everyone that American purchases couldn't care less where goods are manufactured...they will buy what they perceive as the greatest value TO THEM.

If Americans don't learn this lesson quickly, the middle class will be toast.


On Jun 17 01:50 AM TeresaE wrote:

> The joke is that Delphi is becoming a foreign, or subcontracted,
> "manufacturer."
>
> So, not only is the government gifting them away-just like Chrysler-the
> government is assuming all the risk.
>
> Dear gawd, when does this nightmare end?
>
> Oh, that's right, when the only jobs left have been granted by DC,
> the rest of us will be fighting over WalMart.

What Lies Ahead for Hybrid Car Investors?

Through a number of factual errors pointed out previously, the author has somehow arrived at the right short term conclusion in my opinion. PHEV's (not BEV's) are the near term right step. We should do a serious grid analysis (done by serious people with no advance agenda) to determine what kind of energy draw will be necessary to accommodate this technology.

I do think that research and infrastructure analysis should continue with hydrogen powered vehicles however.

How Trucks and Tariffs Contributed to GM, Chrysler Failures

Wayne:

They're sitting on their lots simply because they can't sell them. All three (Toyota, Honda, and Nissan) have tried without success to get into this market and failed.

Please see my other post above.


On May 06 11:58 AM WayneS wrote:

> When I go past a Toyota dealership, all I see are pickups and SUVs.
>
> They must be (were) making a profit on these as this is how they
> are financing their hybrids.
> As long as gasoline is cheap, Americans will buy pickups and SUVs.
>
> Gasoline gets cheaper every year. A stiff tax is the only way people
> will buy the economical vehicles they outwardly claim they want.

How Trucks and Tariffs Contributed to GM, Chrysler Failures

The theme of the article would be valid if the foreign producers had not failed so miserably in building full sized pick up trucks in this country, thus avoiding the tariffs. The Toyota Tundra, Honda Ridgeline, and Nissan Titan have all failed to sell adequately to reach the top ten in truck sales. Ford has sold 110,336 F Series trucks, GM has sold 124,501 ( combined Silverados and Sierras), and Chrysler has sold 64,522 Rams in the first 4 months of 2009. Each of the foreign manufacturers have sold less than 30,000 units for the same time period.

Actually, I did see a Ridgeline yesterday, it was the blue one.

Chrysler's Bankruptcy: Union-Management Relationships Unlikely to Change in Detroit

Succeeding is different than existing. I have 40+ years being involved in these matters so I think I have a right to express my opinion without being questioned by you.

No, the UAW did not want the company to fail. On the other hand, they didn't want them to succeed either. The UAW prefers that the company be essentially a breakeven arrangement where all profits are funneled back to the membership which puts the company in a precarious position when the economy tanks, and here we are.

A successful company has adequate cash and liquid assets on hand to whether these times, unfortunately, those assets became a target of the UAW leadership. The UAW is paying for this miscalculation. I do believe that the UAW had a legitimate purpose for many years gaining decent wages and benefits. The problem was that when they achieved these goals, they didn't change their mission and continued to fight for the same goals pricing themselves out of the market in the process. No vision.


On May 03 01:44 PM Thomas C wrote:

> This is the foundation of your argument..?
> " The union had no real reason to see the car companies succeed.
> They just wanted their wages maintained, their pension fully funded
> and their healthcare.”
> To this i say my friend you are a moron. Why would i want the company
> i worked for for 33 yrs to fail ? Union wages and compnsation make
> up 10 % of their total cost. When they were making billions of dollars
> for years, it was not my decision on how to blow the money or what
> prouducts to come out with. All we did was put together what they
> give us together. Have your ever worked a line? Try it and then tell
> me what your worth to them. And this is the best you can come up
> with. No my friend and i use that loosely, you are the parasite here.
> Get a real job that you know even a tad about . Then again you are
> probably a non union worker eh..?

Chrysler's Bankruptcy: Union-Management Relationships Unlikely to Change in Detroit

The UAW is not a concern of mine. They won't have control on the Chrysler (or maybe GM) BOD. Gettelfinger is correct in saying that the stock is not owned by the UAW, it is owned by the UAW VEBA. Maybe a small but important distinction. The VEBA will be run by a board consisting of 5 UAW appointed members, and 6 independent directors appointed by the courts. The Chairman is going to be Robert Naftaly, former CEO of BCBS PPO.

The concern to me is the government's shares and representation on the Chrysler/GM boards, especially GM. Imagine a scenario where GM wants to make a sizeable investment overseas, after all GM is a multi national company. The fact is that the growth in the auto world is in the Asia Pacific rim, and if you want to be a serious car company, you have to be there. How will a bunch of political hacks loyal to someone other than profit motivation react. Will they see the value of the investment, or will they follow a politically correct path?

Also, will the government hacks exert enough pressure on product development to polarize the portfolio to all smaller/hybrid cars. If a car company had that portfolio in periods of $2 gas like the present, the data shows that they will not sell cars. Prius sales are down over 50% currently.

I also believe they would under estimate the American consumer in that the vast majority of consumers know that hybrids have prohibitively long payback periods.

Like I say, it's not the UAW, it's the U.S. Government to be concerned about.

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

DonFurio

It is amazing that ANYONE would try and defend hedge fund traitors, excuse me, traders. The UAW is taking flak for be $15/hour too high compared to Toyota, Honda, etc. Auto CEO's are taking flak for making $10-15 million in decent years, and the fact that 5 hedge fund traitors made over $1 BILLION last year hardly gets any mention. Scandals, too many to mention plague Wall Street from Bernie Madoff to John Thain go on and on. But you're worried about the UAW getting more than their share??

I for one am sick and tired of the financial sector skating by with TRUE bailouts, with out any hope of repayment, while the auto industry constantly gets hammered. I'm sorry we don't live in Manhattan or are some of the beautiful people in CA that can't manage their own state. But you know what, I've been to both places and wouldn't live in either one if you paid me enough to make up for the absurd cost of living.

And by the way, I am not part of the UAW, never have been. In fact, for a career I fought them everyday. The only people I can't stand more than them are you suddenly self righteous financial people who, along with your friends Christopher Dodd and Barney Frank (both from eastern states I might add).

The "Dean" of investment advisors Art Cashin from UBS, predicted that there would be a severe pullback in the markets before Friday...didn't happen. How many people lost money on that charlatan's advice? Nobody in the entire investment community saw this coming with the exception of Peter Schiff. They are all a bunch of frauds. Anybody who listens to these people deserves to lose everything. And don't give me this stuff that Grandma's and Grandpa's have there life savings invested with the hedge funds. There are no rules in that game, so buyer beware.

So go on with your indignant rants about your rights being usurped, I'm not listening.

By the way, if you really are a Don, I would gladly kiss your ring instead of ending up with cement overshoes in the Long Island Sound.

On May 01 04:12 PM DonFurio wrote:

> Miken,
> If you do not believe in the rule of law and claims in bankruptcy,
> that's fine, but besides being one of the pillars of capitalism,
> just understand the consequences, higher credit costs for everyone
> and more restrictive covenants. Lenders will not take equity risks
> for debt returns, it's that simple. The US is still the largest
> economy by far, and if you weren't over-exposed in this cycle, you
> have an opportunity to do just fine the next 5-10 years. Remember
> if you have debt, it's not your money.
>
> I don’t doubt that the unions may have helped workers 40-50 years
> ago, but many companies and employees have long realized that it
> stifles innovation and why pay 10% of your paycheck to “union dues”.
> Yea, maybe you get a higher salary this year, but since the companies
> can’t fire anyone, it becomes much more difficult for anyone to try
> and get ahead because everything is based off of “seniority” or “for
> the good of union”. Think about it, it basically forces companies
> to overpay for people, if the employees were really worth what they
> think, then they should be able to move to the next firm that can
> hire them at that price. Of course the unskilled like it because
> it pays them more than they are worth, however it also causes all
> prices to rise, including cost of living for everyone.
>

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

DonFurio

"To me it is ridiculous that the UAW gets anything considering they were a major factor in the collapse (of GM)".

Let me rephrase your comment a little:

"To me it is ridiculous that the hedge funds get anything considering they were a major factor in the collapse of the U.S. economy"

What goes around, comes around.


On Apr 30 09:15 PM DonFurio wrote:

> This is horrific, the lenders who are secured, should be ahead of
> everyone. I hope they do well in court. To me it is ridiculous
> that the UAW gets anything considering they were a major factor in
> the collapse and when other heavily unionized companies went through
> CH 11 including just about every major airline besides AMR and CAL
> (they re-worked the bonds out of bankruptcy court), the employees
> who weren't retired, had to have their pension sent to Federal Pension
> Beneficiary where they will get a fraction of their previously unrealistic
> pension. Besides most of Chr’s cars are quite simply not very good,
> and if you were to live in anywhere besides the mid-west, you would
> have realized that people liked and drove around Toyota’s and other
> foreign cars, and steered away from the Big 3. For far too long these
> companies believed that they could do what they want and people would
> “buy American”, but people were smart enough to go for quality and
> also realize that many foreign owned cars are actually made in America.
>
>
> I have disagreed with this author on other articles, but I feel he
> did a nice job analyzing this situation and the article was well
> written.

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

Wolverine:

The Detroit News is reporting that the following three entities did not come to Chrysler's party:

Oppenheimer Funds
Perella Weinburg Partners Xerion Capital Fund
Stairway Cap Management

Whatever you think of their actions, they will face some 'image' issues in the days to come.

www.detnews.com/articl...


On Apr 30 03:34 PM wolverine27 wrote:

> i would love to see the list of hedge funds who voted against this
> deal . some stated they were getting 33 cents and that they could
> get more in courts ......i want those results published.
> poetic justice is if they get less from the courts.
> i still cant believe there are people on this board supporting hedge
> fund billionares......these guys are the problem not the solution.
>
> they use favorable tax codes to skirt taxes which we pick up , so
> when gwynn cries about a sitting president ....please lets not shed
> a tear for this idealogical phony.

GM Forcing More than 1,000 Dealerships to Close

Do we really even need dealers? The internet is quickly dismantling the non value added practices of the middle man in almost every other industry. Research shows that the vast majority of consumers have already 'built' their car on the internet. They may be something that is simply no longer required.

Regional service centers could be strategically placed to be convenient for warranty work, along with new cars on display for those who want to kick the tires might be all that's required. One thing that has been learned with the Saturn experience is that people would rather know what the price is without having to go to every dealer to find the cheapest price. Then performing the pricing ballet while the sales person 'goes to check with the boss'. Have a financing expert on site and you're good to go.

The other thing that would be avoided is the monthly dance to award dealers with bonuses to do their job, not to mention the sales man complaining about the factory to a customer.

Hmmm.

Why Chrysler Needs to Declare Bankruptcy

Honest question....why should they care about how many dealers they have? They're just retail outlets. Is there something in the franchise agreement that I don't know about?

German Press: Fiat to Sign Deal with Opel, Not Chrysler

Fiat and GM Europe (mostly Opel) have a history. One part of the failed GM/Fiat venture that was beneficial was the exchange of powertrain technology. Fiat's small diesel engine technology was one of the things that GM was interested in and vice versa for gas engines. In fact, that's why GM Powertrain located its European headquarters in Turin, Italy.

So there is more of a 'known entity' with Fiat and GM. For the life of me, I can't quite understand why Fiat would be that interested in Chrysler other than the distribution system and ready made entree to the U.S. market. While the European unions (I.G. Metallurgy) are not wall flowers, they at least don't have the mentality that the UAW has in terms of potentially blowing up the company to get what they want. It just seems that Opel would be a better fit.

China Looks to Electrify Our Cars

I would like one person to prove to me that ANY hybrid makes economic sense. For example, compare the Toyota Corolla to a Prius. Both within 200 lbs. of each other, wheelbase less than 4" different, basically would be appealing to the same customer from a size standpoint. The Corolla base model is $16,150 and the Prius is $23,375, a difference of $7225. Based on the EPA estimated combined mileage, the Corolla gets 30 mpg and the Prius 46.

At $2 per gallon gas, and driving 12,000 miles per year, it would take 26.0 years to pay off the premium cost for the Prius. At $4 per gallon, it would take 13 years, of course.

An even better comparison would be the Honda Civic and the Hybrid Civic. The regular Civic gets 29 mpg and the hybrid 42. There is a $7545 difference in base price. Using the same calculations it would take 29 years to pay off the premium.

If you want to save the world, by all means, drive a hybrid. If you just want to save money....not a smart idea.

Can GM Really Abandon Trucks and SUVs?

Cobra:

I guess I wasn't sarcastic enough about taxing the rich. That's the dumbest thing ever. Read "Atlas Shrugged" by Ayn Rand. You'll like it.


On Apr 17 11:47 AM Cobra 1 wrote:

> MIKEN: Why is it that the rich should pay more in taxes than anyone
> else? I am not rich, I have a problem with everybody wanting to tax
> the rich at a higher rate, is that what equal taxation is supposed
> to be about?
>
> That represents an opportunity to move more to a socialist society,
> then a democratic one. If we are going to level the playing field,
> then lets get a flat tax at 25% and move on. Ross Perot had done
> the analysis on a flat tax and the government would have approximately
> 8 to 10% more revenues to waste, not that it would slow them down
> from spending more than they take in.
>
> The elected officials in this country think they can operate at a
> loss forever! If our government was a business, they should have
> been declared (morally as well as financially) bankrupt long ago.
>
>
> I hate that people always are going after the rich! General society
> thinks that there should be a redistribution of the wealth. Be careful
> what you ask for, the wealthy are going to move else where, we will
> be left with a middle class that is third world to use someone else
> analogy!