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GM will cut 47,000 jobs by the end of the year, 20 to 30 thousand in the US. They will now close an extra 5 plants, bringing the total to 17 over the next couple of years. Saturn is going, either through a sale or just shut down. Saab is to be sold also. They will also be cutting out some models.
What they need to do now is to cut executive pay at least 50%. They should not be paid for running the company into the ground.
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Even though this sounds harsh for the workers, big industry should be allowed to fail and go under just like any other business. Whether it be automotive or banking…if you cant produce a viable, competitive product and maintain profitability, you should go under just like anyone else.
Unfortunately with the way car sales are how much more money should we throw away on GM and Chrysler. They need to get rid of the garbage that has been leading those companies. Why give them anymore money with the same management in place.
How long will it take before GM decides to file for bankruptcy? What would happen to the pensions of the retired employees? Does the government pick those up?
I don’t see Chrysler surviving much longer. They don’t have much going for them at this point.
Eclipse_Tuner wrote:
Quote:Even though this sounds harsh for the workers, big industry should be allowed to fail and go under just like any other business. Whether it be automotive or banking…if you cant produce a viable, competitive product and maintain profitability, you should go under just like anyone else.It is about time someone said this. It is called capitalism. It is a system where you can make as much money as you are able, and you can also fail. The problem here is that so many other industries and business are tied into banking and the auto builders. If they fail, most of society will feel it as well. But again that is the risk. I have a problem with bailing out any business when I know that if I failed, no government would bail me out. I would just be out of luck. But I understand why there is such concern about this.
And for the record, although the top brass in auto make huge salaries that we all can’t comprehend, it is the pensions that are dragging them down. The pension agreement was made when everything was going well and it cannot be supported now. With people living longer and retiring earlier, the money going to former employees is too much.
I don’t see a real solid solution to the problem. I doubt that a bailout will end up being much more than a band-aid on a gaping wound. We will give them money and they will still end up collapsing.
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