Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Though after the scr**ing the stockholders got when the government handed the company to the union, I don't know that I'll ever own another GM vehicle.
I don't understand that quote at all. Don't you realize that GM was heading towards liquidation and that's what the government stepped in to stop? What the heck do you think would have happened to stockholders in liquidation? As for "handing the company to the unions" do you realize the unions were just about the only private group willing to inject money into GM at the time?
Why do I get the feeling you don't have a clue as to what actually happened?
Those we disposed of during bankruptcy. That was kind of the main point of bankruptcy to begin with. All the pension obligations stayed with "old GM" (essentially all the assets and obligations GM didn't want) and "new" GM went forward. The retirees have much of their pensions insured by the Federal Pension Protection Act but the payouts are going to be much lower then promised. Essentially the total money in the pension fund will get divided up among the total number of claimants and that's how they'll decide what the pension fund can actually afford to pay but either way it is "old" GM's problem and has nothing to do with "new" GM.
Both companies need to make large payments into the plans within the next five years — $12.3 billion by G.M. and $2.6 billion by Chrysler — to reach minimum funding levels, according to the report, prepared by the Government Accountability Office. Whether the companies will be able to make the payments is uncertain, the report concluded, though Treasury officials expect the automakers will become profitable enough to do so.
If either company’s plan must be terminated, the government would become liable for paying benefits to hundreds of thousands of retirees.
GM has become a 35 year old that won't move out of the house.
Persdoanlly the bailouts to the banks and the automakers wehere all bad budiness. they needed to be alowed to fail. its really sad that governamnt could have at least handle the automakers because they were headed that way for several decades. It bascially was a politcal bailout really.
Originally Posted by Toyman at Jewel Lake Though after the scr**ing the stockholders got when the government handed the company to the union, I don't know that I'll ever own another GM vehicle.
1) The union holds 17% of the stock....that's hardly "handing the company over to the union."
2) The bankruptcy judge made that appropriation because the union was a major bond hold of the company. The union would have far rather have had the money owed to them because if the stock doesn't sell for a good price then the union members' VEBA Trust is woefully under funded.
I'm sure that's great news to pontiac, oldsmobile, hummer, saturn, and all its employees....not to mention what was writen off by the courts to the taxpayers....
oh and how is paying 5 billion out of 50 billion anything to be happy about...its not even 20%
I'm sure that's great news to pontiac, oldsmobile, hummer, saturn, and all its employees....
Oldsmobile was shut down in 2004.
As for the others, GM did what it had to do to stay afloat. I don't really understand your complaint. I would think that a capitalist would support shutting down brands that aren't selling well.
Those we disposed of during bankruptcy. That was kind of the main point of bankruptcy to begin with. All the pension obligations stayed with "old GM" (essentially all the assets and obligations GM didn't want) and "new" GM went forward. The retirees have much of their pensions insured by the Federal Pension Protection Act but the payouts are going to be much lower then promised. Essentially the total money in the pension fund will get divided up among the total number of claimants and that's how they'll decide what the pension fund can actually afford to pay but either way it is "old" GM's problem and has nothing to do with "new" GM.
A few of my friends worked there and now retired . That sucks what the dirty scandles did to those people . Unions should be deported to Siberia ,naked. One lost 70,000 right off the bat !
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
