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Old 11-30-2018, 07:23 AM   #1
AVANTI R5
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Default Angry House Dems seek policy changes in wake of GM's restructuring

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Angry that General Motors plans to idle large plants that employ thousands of people, vowed Thursday to reset tax, trade and industrial policies to encourage companies to invest in the U.S. rather than move production overseas.

In a press briefing, indignant members of the House Automotive Caucus said GM acted like a corporate bully instead of being grateful to taxpayers and workers for bailing it out during the financial crisis 10 years ago.

"We saved GM. It would not exist but for the taxpayers of the U.S. It would not exist but for the concessions by the UAW," said Congressman-elect Andy Levin.

His father, outgoing Rep. Sander Levin, D-Mich., said the package of government loans, tax assistance and labor givebacks was a collaborative process with the Obama administration that took a lot of hard work to put together.

"Now, GM is kind of setting aside collaboration," he said. "That is a serious mistake. There wasn't any involvement of labor."

GM referred questions to a prepared statement released on Tuesday.

"Many of the U.S. workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs," the statement said. "GMs transformation also includes adding technical and engineering jobs to support the future of mobility, such as new jobs in electrification and autonomous vehicles."

The lawmakers, all strong defenders of the auto industry, said they feel burned by GM.

"We took lots of political bullets" when some were arguing to let Detroit automakers go bankrupt, said Rep. Tim Ryan of Ohio, who represents Lordstown, home of one of the targeted plants. "We stuck our neck out because we didn't want to lose manufacturing in the U.S. Years later, same company gets a tax cut to the tune of $150 million [in the 2017 tax bill], and the result of that is 14,000 jobs getting cut and the stock goes up 6 percent.

"And then you wonder why the American people are so upset about what has happened to our country."

Workers bear the brunt of flawed economic and tax policies, factory closures and pension reductions, Ryan added. "There's always some damn excuse about why it happens. We need to reset our economic policy and put workers at the center."

The lawmakers also took President Donald Trump to task for promising people in the Midwest that if they voted for him in 2016, there would be an influx of new factories and no loss of manufacturing jobs. They said the administration's tariffs have put a strain on companies, that the United States-Mexico-Canada Agreement to replace the North American Free Trade Agreement doesn't level the playing field with Mexico when it comes to worker pay and collective bargaining, and that its trade policy is incoherent.

Rep. Marcy Kaptur of Ohio said the caucus will invite the president to join them in meeting workers from plants slated for idling.

GM technically isn't shuttering its assembly plants, it's just not allocating any models to them anymore after deciding to discontinue production of slow-selling models. New models potentially could be substituted, and Ryan suggested GM's announcement was designed to gain the upper hand in upcoming talks on a new labor contract.

"They are going to go into contract negotiations, and they are going to pit the local unions against each other to get the best deal. And the union that has the lowest wage and negotiates the lowest benefit will get any new product," he said. "So, anyone who got screwed in this process gets to fight amongst each other to have a race to the bottom. That's how distorted the system is."
http://www.autonews.com/article/2018...plant-closures
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Old 11-30-2018, 11:36 AM   #2
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So much fail!!!

Peter
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Old 11-30-2018, 01:06 PM   #3
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Smells political in here...
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Old 12-01-2018, 10:21 AM   #4
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So much fail!!!

Peter
Dem fail, per typical.
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Old 12-01-2018, 04:01 PM   #5
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Both parties seem to be equally upset over this and they should be. Both parties agreed to bail out GM and Chrysler as the economic impact of them going under would have likely tipped the scales into a depression (same reason we bailed out the banks). But for them (GM) to have taken a bailout on the back of tax payers and then give us the finger and relo manufacturing to another country is bull****.

Sure, this will definitely improve the bottom line margin eventually but it so short sided that it will only provide short term growth in stock (if that even happens). GMs problem is innovation. With the exception of the corvette (and bolt to an extent), I can’t think of 1 other vehicle that is really impressive and equal or ahead of the competition in terms of features, quality, design, etc.

Tahoe, Denali, Suburban have been **** poor in terms of quality and are only a truck with a large suv body.

Cadillac as a whole has **** to offer and even the elderly that use to buy them don’t want them.
GM has **** in their line up
Chevy has the corvette which I think is amazing, and the canaries is decent but sale seem to be coming down decently.

Chevy trucks aren’t what they use to be, Ford continues to crush them in sales while offering more value at the same cost level.

GM needs young blood to revive the company, not old and out of touch bean counters who think that by only lowering cost and driving up margin is the only solution. Increasing margin doesn’t mean **** when your vehicle sales are piss poor.
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Old 12-02-2018, 06:48 AM   #6
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Congress must think they're the Chinese government who can nationalize companies if they don't like what decisions they make.

The government shouldn't be so surprised when their stupid decisions turn out to be stupid.
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Old 12-03-2018, 08:51 AM   #7
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This is going the same way as that other GM closure thread. Can't this stuff just be moved to OT/PP? Also, I don't think another GM closure thread is needed.
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Old 12-03-2018, 08:57 AM   #8
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I mean what did the government expect GM to do? if you give a skint meth head meth, they aren't going to stop chasing a high (if you give a money hungry corporation money they aren't going to stop chasing profit).
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Old 12-03-2018, 10:33 AM   #9
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When GM required a bailout people bashed them for not knowing how to run a company. They had too many brands and too many identical models. They ran themselves into bankruptcy by not recognizing that they were making things no one wanted. Now they are recognizing there are models which no one wants. Instead of continuing to lose money they are proactive and cut those models. We should be impressed that they are smart enough to cut losses and remain profitable. Instead everyone wants GM to continue paying people they don't need to make products no one wants. They want GM to go bankrupt again.
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Old 12-03-2018, 11:45 AM   #10
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Originally Posted by Scooby921 View Post
When GM required a bailout people bashed them for not knowing how to run a company. They had too many brands and too many identical models. They ran themselves into bankruptcy by not recognizing that they were making things no one wanted. Now they are recognizing there are models which no one wants. Instead of continuing to lose money they are proactive and cut those models. We should be impressed that they are smart enough to cut losses and remain profitable. Instead everyone wants GM to continue paying people they don't need to make products no one wants. They want GM to go bankrupt again.
I partially agree with this.....I was in the camp let them fail. Rubbish products never stopped coming. They were image over substance (e.g. Volt). They never should have been saved.

However, I do agree that they are realizing the slow down in mid sized sedans and are proactively taking steps to stop the bleeding. If a company cannot exist without year after year tax breaks and incentives, it should be left to die. Only then will innovation happen.
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Old 12-03-2018, 03:30 PM   #11
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Quote:
Originally Posted by Scooby921 View Post
When GM required a bailout people bashed them for not knowing how to run a company. They had too many brands and too many identical models. They ran themselves into bankruptcy by not recognizing that they were making things no one wanted. Now they are recognizing there are models which no one wants. Instead of continuing to lose money they are proactive and cut those models. We should be impressed that they are smart enough to cut losses and remain profitable. Instead everyone wants GM to continue paying people they don't need to make products no one wants. They want GM to go bankrupt again.
Actually, looking at some of the details, some of what is going on is questionable.
GM execs are saying they'll save $6B a year by laying off, shutting down plants and cutting out the 6 cars we talked about.
But, when you look at that $6B figure, the actual savings are $4.5B, the extra $1.5B comes from reducing capex.
Why not maintain current capex level since they supposedly want to produce relevant, fresh, vehicles that people actually want?
Also, in all of this, they are still making a $2B yearly distribution to investors, that's nice, but, then again, why not reduce that distribution and actually invest it back into growing/improving the business?
And, here is the last one, it's going to cost GM around $2.5B to lay off all these employees and shutdown all of these plants; GM said they would take out a loan to pay for all of this.
Why is that? They have about $24B in CASH ! Why the loan? Who's actually benefiting from this?
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