Its Official GM CHapter 11 Bankrupt

[G35X]

Filing for bankruptcy protection is the easy part.  Turning the company around to make it profitable is very, very difficult.  GM, after restructuring, is still a big company with heavy overhead.  The only immediate fix is for the federal government to make gas artificially cheap so that they can keep selling Escalades.  To make Civics, Priuses and 335i’s of GM from scratch needs money, talent and time, which the new GM does not have.  Chances of each and every one of Canadians, including babies and seniors, to lose $300 are very strong, which is much worse than the BC NDP Government’s Pacificat fiasco.

[kevlar]

while gm tries to figure out how to sort out the big mess they have gotten themselves into, frank stronach has taken control of opel and will be building cars in canada very soon.  basically he is doing what gm should have done a long time ago.  it's too bad the canadian government isnt pushing to get audi or bmw to build here as well.

[dorin]

With regards to Opel, everyone seems to forget that GM will retain a 35% share in Opel.  That's not so shabby compared to Magna's 20% share.

[ovr50]

while gm tries to figure out how to sort out the big mess they have gotten themselves into, frank stronach has taken control of opel and will be building cars in canada very soon.  basically he is doing what gm should have done a long time ago.  it's too bad the canadian government isnt pushing to get audi or bmw to build here as well.

BMW already builds the X5 and X6 plus the Z4 at Spartansburg, South Carolina. The X3 production will be moving there also soon. I doubt BMW would be very interested in building a plant in Canada as the Canadian market on it's own is too small, and can be serviced easily from the US.

[rrocket]

BMW already builds the X5 and X6 plus the Z4 at Spartansburg, South Carolina. The X3 production will be moving there also soon. I doubt BMW would be very interested in building a plant in Canada as the Canadian market on it's own is too small, and can be serviced easily from the US.

...and they be scared silly by the over-zealous CAW union......

[ovr50]

http://www.canadiandriver.com/2009/06/01/gm-canada-plan-approved-without-bankruptcy.htm

A bit of good news - GM Canada not being put into bankruptcy. 

[toolatecrew]

http://www.canadiandriver.com/2009/06/01/gm-canada-plan-approved-without-bankruptcy.htm

A bit of good news - GM Canada not being put into bankruptcy. 

Consistent with the principle of proportional support for proportional production, the governments of Canada and Ontario will invest $10.6 billion in General Motors, and will receive a significant equity position in the new GM. The funding will also secure the following benefits for Canada:

Based on the adult population of Canada that is roughly $500 a person in Canada if my calculations are correct. So what do I get for my $500?

- The launch of five new vehicles, including new hybrid vehicle production, at GM Canada assembly plants in Oshawa and Ingersoll, Ontario. Good more jobs is better for Canada more taex revenue etc some benifit to me down the road

- The introduction of flexible transmission production with the manufacturing launch of a six-speed front-wheel drive transmission at GM’s facility in St. Catharines, Ontario. Ongoing significant production of V6 and V8 engines will be maintained at St. Catharines Powertrain. Good more jobs is better for Canada more taex revenue etc some benifit to me down the road


- General Motors of Canada plans to make substantial capital investments over the next seven years in Canadian facilities and contemplates no further GM Canada plant closures at this time.Substantial capital investment? Usining what more loans from the the givernment and thus me? Where is this money coming from..unless it comes from the US which is woned by US government

- With the recently-concluded agreement with the Canadian Auto Workers Union (CAW), GM Canada’s labour costs will be competitive with Toyota Canada.Great why should I have to pay $500 so that what should have happened years ago happens{/b]

- GM plans to invest almost $1 billion over the next seven years in green research, development and innovation focusing on energy diversification, fuel economy improvements and vehicle electrification through its engineering centre based in Oshawa, Ontario. Canadian suppliers and universities will be critical partners.Once again where is that money coming from. The Government already invests money through grants credits etc in this. If I want to give my $500 to Green reasearch I give it to the Green pary

- Secures pensions for GM Canada retirees by improving funding levels over time in the salaried and hourly pension plans, and establishes a health care trust for hourly retiree health care benefits.No offense but WTF. Why are they using my money to give someone else a pension above and beyond what I get? This part is complete BS.

- The customers’ needs will be better served through GM Canada’s consolidated dealer network.1. Customer needs are not served better through fewer dealers lets be honest. This has nothing to do with consumers. I realize it needs to be done but lets no try to paint my $500 investment in something that puts 1000s out of work and devestates the investments of 1000s as a GOOD thing

I anxiously await of my stock certificates for 500 voting shares of GM in the mail.

[kevlar]

gm may have 35% share of opel but those bumbling idiots running gm in the states don't have controlling interest since frank made a deal with a russian consortium to take controlling interest.  i would rather see frank building opels here than gm continuing on. as for bmw, i agree it would be a little stretch for them to open a plant in canada now that they are building in the states.  audi?  mercedes? 

[ovr50]

I anxiously await of my stock certificates for 500 voting shares of GM in the mail.

Good luck with that. Could be a long wait. 

[footlong58]

Government Motors

[Honda Owner]

American Leyland

[PJungnitsch]

mkaresh had an interesting take on it:

Nearly everything wrong with GM can be traced to one source: GM’s senior management has long acted as if it should make all important decisions, and that everyone else involved–middle management, workers, suppliers, dealers–should simply execute their orders.

This essentially tossed a lot of product, market, and manufacturing knowledge that, if effectively applied, would have yielded better, cheaper to produce cars.

It also led to zero-sum thinking all around, where all parties felt they were fighting GM’s senior management, and so pushed for as much as they could get.

This was especially the case with the union. Back in the 1950s GM’s leadership and the UAW struck a deal: in exchange of having no say in how the product was made, the UAW would receive high levels of pay and benefits. In recent decades, GM has forced the UAW to make some concessions. These times, the profits that later followed went towards bonuses, dividends, and acquisitions. They did not go into the product. So why should the UAW make concessions?

Real change will come to GM only when its senior executives admit that they need to forge true partnerships with all of the parties involved, with better cars a shared goal. Since bankruptcy is being used to push through a bunch of unilateral decisions, this hasn’t happened yet.

http://www.truedelta.com/blog/?session_code=

I always had the impression that there was a tremendous amount of talent in GM, but it just wasn't getting out into the product. Talented players, lousy team.

[Honda Owner]

Nearly everything wrong with GM can be traced to one source: GM’s senior management has long acted as if it should make all important decisions, and that everyone else involved–middle management, workers, suppliers, dealers–should simply execute their orders.

This essentially tossed a lot of product, market, and manufacturing knowledge that, if effectively applied, would have yielded better, cheaper to produce cars.

Having once been a GM employee myself, I can personally attest to this being EXACTLY how GM operated. The corporate culture was 100% top down and you, as an underling, were not to express any attitude or opinion to those above you. This was even the case at the dealership level.

At Chryco, they zone reps would at least make an attempt to meet all the people in the store with clean hands, especially in the service departments because CSI is so important. They would actually ask us what problems were were seeing in new products. I doubt they cared, but at least they asked.

Not at GM. Teams in grey suits would file in to the boss's office. They would file out and the boss would have a panicked look on her face. A week later 100 more cars would arrive. That kind of thing.

At both companies were all SCREAMED for something that could compete with the Civic and Corolla. Instead we got bigger SUVs and the rest is now history.

Anyway, here is an excellent piece:

http://online.wsj.com/article/SB124389995447074461.html

[safristi]

..hey I'm PART OWNER and i need a PEE break..............can someone take over..I'll ONLY be 136 minutes............gotta get in 9 holes eh!!!