Highlights of GM's new restructuring plan

[CaptainDan]

Originally Posted by mgescuro

.....If GM had put the lean inventory practices into place back when they launched Saturn -- AS THEY WERE SUPPOSED TO -- perhaps they'd have learned a thing or two by now.
It's unbelievable that this wasn't reduced to begin with!!?? Who runs GM's operations centers???? Dammit. This is a textbook business school application right here!!!.......

Nice in theory. But GM DID try it. The most strike-prone workforce in the country put an end to it. Lean inventory is a union strategist's wet dream. Brings a company to it's knees instantly.

Until the UAW could be put in line, it wasn't going to work. Has the union come to it's senses? Maybe, we'll see.

[CaptainDan]

Originally Posted by GM-10

Don't you dare question "The Answer Man."

Sorry. My bad.

[wescoent]

Originally Posted by CaptainDan

Nice in theory. But GM DID try it. The most strike-prone workforce in the country put an end to it. Lean inventory is a union strategist's wet dream. Brings a company to it's knees instantly.

Until the UAW could be put in line, it wasn't going to work. Has the union come to it's senses? Maybe, we'll see.

You bring up a very good point.

Which further reinforces the union-breaking idea.

[Whitesky]

Originally Posted by CaptainDan

You've GOT to be kidding! Purchasing the RenCen was the real estate coup of the century! Bringing the old General Motors Building up to the twentienth century (let alone the twenty first century) would have cost GM ten times the price of buying and updating the RenCen. Buying the RenCen saved a lot of money.

I think he means they could have just continued leasing the RenCen. However, I disagree. I think they will make a couple hundred million by holding it for a year or two.

[hunchman]

Originally Posted by mgescuro

I stand by "Break the Union," if the union proves to be the ultimate obstacle to fiscal health of a company or institution.
I've driven GM cars my whole life. The Mercedes is inherited. The Jag was a family car i took over. And I got rid of my Pontiac G6 because it was the worse thing to come out of Detroit since the Gremlin.
I have no patience for poorly put together cars, and the G6 started falling apart about 9 months into ownership.

I work 60+ hour weeks with no overtime. I earn my 6-figure salary unlike most union members.

Where are my waist high rubber boots? It's starting to get deep in here.

[mgescuro]

Originally Posted by CaptainDan

Nice in theory. But GM DID try it. The most strike-prone workforce in the country put an end to it. Lean inventory is a union strategist's wet dream. Brings a company to it's knees instantly.

Until the UAW could be put in line, it wasn't going to work. Has the union come to it's senses? Maybe, we'll see.

That unfortunately circles back to my initial comment "Break the union."
GM has some obvious inefficiencies, that will save millions, if not billions in operations alone. JIT inventory (I can't believe they haven't implemented that widespread, after the Saturn "experiment) is just the tip of the iceberg.

It really shows that for all the machinations between GM and the UAW, they haven't tackled the true operational problems plaguing GM.

[psece]

Originally Posted by doh

* Engineering spending in 2008 and 2009 will be held at
2006-2007 levels.

Didn't 2005-2007 have the highest Engineering expenditures? You had the ZR1 program starting, the Z06 Program ending, Malibu Program starting, 6 speed transmission program ending, Truck/SUV program sped up, HCCI program starting, Saturn Aura Program ending, Lambda Program ending, CTS Program Finishing up, Ultra V8 program, LS update Program, Volt Program started, Hybrid Truck/SUV program, and a whole bunch of others that i have forgotten or didn't know anything about.

I would say that it is good that it isn't being touched in what should be called a downward spiral!

[ronald mcretard]

no raises for 2 years? sweet!

[TriShield]

Originally Posted by mgescuro

It really shows that for all the machinations between GM and the UAW, they haven't tackled the true operational problems plaguing GM.

The Union is one big problem. But it would be much less of a problem if GM was a well managed, profitably structured, forward thinking company that produced products people actually want to buy.

[ronald mcretard]

EDIT: I wonder if Red Ink Rick gets a raise. That guy needs to go...

[2002 Caddy]

Originally Posted by ronald mcretard

no raises for 2 years? sweet!

Ya that sends a strong message... Except, I can tell you, where I work, if we were to cut our Engineers raises for the next two years... ALL of the engineers who are any good would leave.

On the plus side you will have no trouble meeting the white collar cuts that are proposed... But you have to consider the quagmire of employees that you will have left.

I hope the "white collar" down sizing is done at managements discretion... if it is a "voluntary" buy out scheme then everyone who has another job offer pending or who can get one in 24 hrs (AKA the best of the best) will leave.

[CaptainDan]

Originally Posted by 2002 Caddy

How many shares of GM do you own? If you love GM and if you love Rick, BUY SOME!
They're going cheap only $20.00, nope 15.50, nope 14.77, nope 13.77... CRAP $11.50 OMG 10.06



If you wait long enough you can buy LOTS! .

If you wait a little longer, you can buy them ALL!

Or buy a coffee at Starbuck's. Your choice.

[377Z]

Originally Posted by Ambalanche

So this sounds to me like R&D is going to suffer..... Beating Toyondassan just got a little harder....

Yeah, considering they ain't makin' it now...

[fp115]

Originally Posted by 2002 Caddy

I hope the "white collar" down sizing is done at managements discretion... if it is a "voluntary" buy out scheme then everyone who has another job offer pending or who can get one in 24 hrs (AKA the best of the best) will leave.

You must be offered a package in order to do this. The bulk will be done through retirements. Those who want to leave the company and expect a buy out and have a job waiting, but are not offered a package will have to quit or continue as they are.

[fp115]

Originally Posted by ronald mcretard

EDIT: I wonder if Red Ink Rick gets a raise. That guy needs to go...

Executive bonuses are on hold.