GM lost the respect of their white collar workers and retirees after stripping them of life insurance, high cost healthcare and now their pension. They have pandered to the UAW who still enjoy the same benefits pre bankruptcy. Sound familiar? No shared sacrifice. They can try to lure the MTV crowd all they want. It's the parents and grandparents who are footing the bill for most of their purchases and it won't be a UAW Government Motors product.
Ford (F) will tackle one of its biggest challenges this summer when it offers lump sum payout offers to 98K retired workers in an effort to reduce a staggering $49B pension liability. Though it's uncertain how many ex-employees will take the deals, the move could help improve Ford's credit rating even further into investment-grade territory. Shares -0.6% premarket. [View news story]
Are they taking the money out of the pension fund for the buyouts? What happens to the people who decide to stay and their pension fund is depleted by the buyouts? Are they eventually going to the PBGC like the Delphi Salaried who had an 85 per cent funded pension fund and were kicked to the curb unlike their union counterparts who got their pension topped off in the bailout.
General Motors (GM -0.5%) CEO Dan Akerson tells employees on a company-wide CC the old culture at the automaker that is holding it back is on its way out as he plans to bring GM into the 21st Century. (Earlier: GM looks to MTV advertising to reshape its stodgy image) [View news story]
Ford (F) will tackle one of its biggest challenges this summer when it offers lump sum payout offers to 98K retired workers in an effort to reduce a staggering $49B pension liability. Though it's uncertain how many ex-employees will take the deals, the move could help improve Ford's credit rating even further into investment-grade territory. Shares -0.6% premarket. [View news story]