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> Gm's Continued Losses Heighten Urgency At Uaw Talks
Bakemono
post May 3 2007, 04:45 PM
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http://www.nyse.com/interface/jsp/NHDetail...isdowjones=true
QUOTE
General Motors Corp.'s (GM) continued weak performance in North America raises the stakes in labor negotiations that are set to begin in the coming months.

The top U.S. auto maker on Thursday reported a surprisingly weak performance in its core region for the latest quarter, showing a loss of $85 million. Despite deep cost cuts and efforts to improve the competitiveness of its vehicle lineup, which led some analysts to predict a profit for the region in the latest period, the auto maker has now posted losses in North America for nine consecutive quarters.

"Frankly our business is not generating the kinds of returns that we expect and clearly we have to continue to make significant improvements," Chief Financial Officer Fritz Henderson said during a conference call. "That has been foremost in our mind as we work out our agenda going into bargaining."

QUOTE
GM's report came one week after Ford Motor Co. (F) said it posted a $614 million loss in North America in the first quarter. Ford expects to continue showing red ink in the region until 2009.

Since the last round of labor negotiations in 2003, GM and Ford have lost nearly a combined $30 billion in North America due to slumping operations and costly restructuring efforts aimed at shrinking their manufacturing footprints and workforces in the region.

The two companies have lost a combined eight percentage points of U.S. market share since the end of 2003, as Toyota Motor Corp. ™ and Honda Motor Co. ( HMC) make inroads. Production at GM and Ford has fallen by more than 20% in the period.

In the case of GM, the auto maker is seeing buyers willing to pay more for its products, lessening the reliance on incentives and fueling the move away from low-margin sales to rental car agencies. Though GM narrowed losses in North America significantly in 2006, early indications this year appear to point to GM being, at best, a break-even company in the region.

"Without substantial labor concessions, meaningful improvements in profitability are unlikely, in our view," Lehman Brothers auto analyst Brian Johnson wrote, citing concerns about weak auto sales numbers and rising inventories in April.

The good news, according to Goldman Sachs auto analyst Robert Barry, is "weak (automotive operations) results may actually engender big union concessions."



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Kenneth Watkins
post May 3 2007, 09:20 PM
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I have friends that work in GM plants and I hear them telling how they are cutting jobs lower wages, but most of all they admit that GM is building inferior cars and trucks and their are only a few products they make that actually sell well. Most are taking early retirement so they can get out while they still can get something from GM. It doesn't look good for awhile at GM.
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ss1129
post May 4 2007, 08:19 PM
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Linky no worky. GM should fire your friends then. Oh wait, they cant. They make $32 an hour to sweep a floor, while toyota skates by again without unions to ruin them. Its an unfair advantage.
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Chimpie
post May 4 2007, 08:45 PM
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QUOTE(ss1129 @ May 4 2007, 10:19 PM) [snapback]4734[/snapback]

Linky no worky. GM should fire your friends then. Oh wait, they cant. They make $32 an hour to sweep a floor, while toyota skates by again without unions to ruin them. Its an unfair advantage.

I've read your post at least a dozen times and I can't figure out your point.
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Bakemono
post May 4 2007, 09:38 PM
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QUOTE(Kenneth Watkins @ May 3 2007, 10:20 PM) [snapback]4703[/snapback]

I have friends that work in GM plants and I hear them telling how they are cutting jobs lower wages, but most of all they admit that GM is building inferior cars and trucks and their are only a few products they make that actually sell well. Most are taking early retirement so they can get out while they still can get something from GM. It doesn't look good for awhile at GM.

My aunt works for GM in Fort Wayne, IN. A few years back when we visited her I toured the GM plant in Fort Wayne.
We talked to one of the engineers about the future and Toyota and his exact comment was, "the new Silverado is going to be awesome, but in my opinion its going to be too little, too late." He also went on to say, "I believe that very soon Toyota will own us." I think by that he meant that they wont be able to compete with Toyota, not that Toyota will literally buy GM.
I know for a fact that the people who get hired in at GM now will never make the same kind of money that the people who worked for GM in the past did.


QUOTE(ss1129 @ May 4 2007, 09:19 PM) [snapback]4734[/snapback]

Linky no worky. GM should fire your friends then. Oh wait, they cant. They make $32 an hour to sweep a floor, while toyota skates by again without unions to ruin them. Its an unfair advantage.

If youd do your research you would find that people who work for Toyota enjoy almost the same pay and benefits that people who work for GM enjoy. Toyota doesnt need a union to pressure them in order for them to treat their workers right.
Does GM have daycare facilities in their factories? Toyota does.

QUOTE(Chimpie @ May 4 2007, 09:45 PM) [snapback]4738[/snapback]

I've read your post at least a dozen times and I can't figure out your point.

He has no point. He purpose for being here is to bash Toyota while trying to throw GM a pity party.
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vicki2
post May 5 2007, 05:40 AM
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I read the post as more of an anti-union statement than as a Toyota bashing. In the case of GM and its losses, I think the high union wages do factor into the situation but not nearly as much as lousy designs.
There's no incentive to buy a GM car/truck these days ...well, not one that I see anyhow.
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