GM is doing whatever it can to tame its cash conflagration this week, as it seeks to survive another few weeks and prove to congress that it’s serious about shaping up. The Wall Street Journal reports that these efforts have crossed over from the sublime to the ridiculous (always closer than they seem), as everything from clock maintenance to escalator operation budgets are being slashed to save cash. So just how tight is GM cinching its belt? GM is eliminating clock maintenance, stopping RenCen escalator operation at 7pm, eliminating voice mail at plants, buying cheaper pencils, and next year it will reduce its press fleet and cancel its “Mark of Excellence” dealer award. Worst of all? “At GM’s metal-fabricating plant in Grand Blanc, Mich., Steve Bean, a union committeeman, said he recently had to tell workers they would have to wait until at least next year to get $270 stipends they were promised in order to buy T-shirts, hats or coats emblazoned with their union local.” On a more… significant front, Bloomberg reports that GM will seek to reduce its $43b in debt and renegotiate elements of its 2007 UAW contract as part of its restructuring plan which is due to Congress on December 2. Should GM exchange debt at levels less than the original value, Standard and Poors would consider those issues in default while not necessarily cutting the automaker’s overall debt rating, according to S&P analyst Robert Schulz. “A financial restructuring, along with government loans, is an alternative to bankruptcy,” says Schulz. “It doesn’t fix the economic environment, though, and it’s the economic conditions that are causing their cash burn.”
Find Reviews by Make:
Not a practical outfit for the sport, but who cares?
Tiger Woods just got “let go”
He shoulda been doing Caddys all along anyway.
TO ANY AND ALL FOLKS STILL WORKING FOR THE DEBT3 OR ANY OF THEIR SUPPLIERS:
You can tell how healthy a company is based on the number of plys in the toilet paper. Delphi has translucent paper that doubles as sandpaper. The company I now work for (NOT auto related) uses two plys and is very soft. Use this simple yardstick as a measure as to how well you company is doing. If they are using Delphi’s TP, RUN, FOREST, RUN!!!
jolo,
Delphi is BYOTP
I hate to see people lose their jobs, but I am glad GM is going down the toilet!! Overpriced heaps of junk!! Their product doesn’t last any longer than Jack Stayed in the Army!! Thats what they get so oh well and goodnight.
You can tell how healthy a company is based on the number of plys in the toilet paper.
I thought GM would be using their stock as TP these days.
John
Seriously though, we are using our stock options certificates at Delphi. At least it makes them worth something.
I love athletic women. Thanks for the pic.
As for ‘cancel its “Mark of Excellence” dealer award‘, well, insert dealer/Bill Heard joke here ->
“A financial restructuring… doesn’t fix the economic environment, though, and it’s the economic conditions that are causing their cash burn.”
Finally someone recognizes the real problem. Thank you!
Lady looks very nice =)… better than the sinking ship
Shouldn’t the union be buying their own logo clothing? If GM is footing the bill, then GM should be able to put what they want on the clothes.
Good luck renegotiating the union contract in the next 7 days.
Unionized workers want to wear clothing with their union logo on it. But since they’re unionized, they want someone else to pay for it.
Badump-bump!
Prior to Chrysler Corporation getting their 1.5 billion dollar loan money in 1979, the automaker shaved two billion dollars of expenses (e.g., union give backs, white collar salary reductions, state and local government tax concessions, etc.) first before seeing a single dollar of taxpayer money.
What are the three automakers doing today to earn the right to ask us for money? Nothing worth mentioning apparently.
1st
Why is GM paying a $270 stipend per worker for clothing emblazoned with union logos? Given how much the employees pay the union, I would think the union could fork over a few bucks per employee for T-shirts with the union logo. And, $270 will buy a heck of a lot of T-shirts.
2nd
The economic conditions aren’t responsible for GMs condition. That’s just GM’s latest excuse for their complete and utter failure in the market place over the past decade. As we have been discussing on this site for several years, GM’s inability to make desirable, profitable cars is the reason for their current condition. If it were the economy, wouldn’t all car makers be circling the toilet bowl?
$270 per worker for logo shirts and caps?!?! Wow! I read it as $270 per local, which sounded like a reasonable amount.
How about slashing all salaries in half?
Sounds drastic, but I’ve been involved with a Silicon Valley company, that did just that to survive.
Did the employees complain?
Sure, but they were glad to keep their jobs…
“At GM’s metal-fabricating plant in Grand Blanc, Mich., Steve Bean, a union committeeman, said he recently had to tell workers they would have to wait until at least next year to get $270 stipends they were promised in order to buy T-shirts, hats or coats emblazoned with their union local.”
Perhaps the Local could provide the stipend…?