Kaboom! Auto Bailout Talks Collapse!

[deckeda]

http://www.caranddriver.com/reviews/hot_...age-2.html

2009 10Best Winners and Losers - CEO Salary

Winners: The immolation of the domestic auto industry is ruining livelihoods, except at Detroit-area U-Haul agencies and in executive suites. After weathering a 25-percent pay cut in 2007, GM chairman Rick Wagoner was given a $550,000 raise for 2008, restoring his base salary to $2.2 million. Living on that previous weekly pretax wage of $31,731 must have been tough. Should he wish to feel truly unloved, Wagoner can look crosstown to the lousiest team in pro football, William Clay Ford’s clueless Detroit Lions, and consider that an unspectacular defensive end named DeWayne White earned almost six times the GM chairman’s base pay in ’07.

Shortly before announcing a record $8.7 billion second-quarter loss in 2008, Ford disclosed that CEO Alan Mulally’s total compensation in ’07 was $21.7 million, including a $2 million base salary and $7 million in “incentive bonus awards.” And Chrysler, LLC, co-president Tom La Sorda was handed a $15.8-million bonus for his role in managing DaimlerChrysler’s breakup. He is now—understandably—the very last soul in Detroit who believes the merger was a splendid idea.

And it’s worth noting here that American Suzuki chairman Rick Suzuki announced last March that he is stepping down “to bear responsibility” for the company’s slow sales and earnings. Suzuki, 60, who is the grandson of Suzuki Motor Corporation founder Michio Suzuki, said he also would be forced to cut the 674-member U.S. workforce by 55 through voluntary retirement packages. The slime.

[Mac1337]

karsen wrote:
[quote=Dakota]
GMs problem is that people aren't buying their cars. Why not give the money to the people who want to buy GM cars instead of giving them to GM and not knowing with they do with it? If I got a $10000 voucher, which will get me a new Cobalt for practically free, I would be on my way right now. $15b will sell 1.5 million cars.

Not true. Look at stats. In 2007 GM sold 9,369,524 vehicles, up 3% from the previous year. Due to labor costs and inefficiencies in the manufacturing process it costs GM approximately $2000 more to produce a vehicle than it does for Honda or Toyota. GM either has to sell an inferior vehicle or cut costs to be on par with the competition. Handing them billions of dollars isn't the answer.
I agree with you on the cost issue but you can't tell me that GM's dealers are buzzing with customers. They are not. In fact, all this bankruptcy talks started with the financial collapse and of course gas prices.

[swampy]

So, if Congress fails to bail them out, the U.S. Treasury is ready to step up and give them the money!!! And the tax payers are gonna be stuck with the bill anyway.

No bailout!


http://www.foxnews.com/politics/2008/12/...-industry/

[JoeH]

Karsen, you make a big deal out of GM losing money last year on good sales. Well I partly agree with you, but, you also have to take into account that there were a number of large write-offs and expenses that should be one-time cost items. Part was the costs of closing or converting plants to different production. Another part was beginning to fund the health care trust fund for retirees as part of the process of transferring that responsibility and the trust fund to the unions. So, I don't know if GM can come back, but the lack of sales this year for everyone leaves them halfway through the process of changing their business organization and with little income coming in to pay for current operations and transition costs.

[OWC Jamie]

What I've read:
The only automakers that made a profit and increased sales at the end of November for the year was Honda and Rolls Royce.