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kwlafayette





Joined: 03 Sep 2006
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Location: Saskatoon Saskatchewan

PostPosted: Mon Sep 24, 2007 12:46 pm    Post subject: UAW on strike. Reply with quote

CNN Money article.
I think that the only rational course of action for GM is to let them stay on strike until the union is bankrupt. They have been in serious trouble now for some time, they need to cut about $70,000 per year, on average, from each worker's wages and benefits to bring them in line with their Japanese competition. They are between the rock and the hard place, and this contract will decide whether there still is a GM in 10 years time.
kwlafayette





Joined: 03 Sep 2006
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Location: Saskatoon Saskatchewan

PostPosted: Mon Sep 24, 2007 1:53 pm    Post subject: Reply with quote

Whoops. Not just a US issue.

G&M Article
Mac





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PostPosted: Mon Sep 24, 2007 4:00 pm    Post subject: Reply with quote

The union is only part of the problem at GM... as per previous thread on this subject...

-Mac
kwlafayette





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Location: Saskatoon Saskatchewan

PostPosted: Tue Sep 25, 2007 10:42 am    Post subject: Reply with quote

Looks like the strike effects are rippling quickly through GMs supply chain.

http://www.globeinvestor.com/s.....5/GIStory/
Quote:
TORONTO General Motors of Canada's No. 1 car assembly plant in Oshawa, Ont., has been shut down, idling close to 3,000 people, as a strike against GM in the United States halts the flow of key components.

The No. 2 car plant at Oshawa, east of Toronto, is likely to shut down Tuesday afternoon, said Buzz Hargrove, president of the Canadian Auto Workers.
Mac





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PostPosted: Tue Sep 25, 2007 1:01 pm    Post subject: Reply with quote

Things are looking ugly. Both sides are showing signs of digging in for an extended battle.

-Mac
kwlafayette





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PostPosted: Tue Sep 25, 2007 1:05 pm    Post subject: Reply with quote

This is it for GM, the final battle. They either break the union, and get everything they want, or it is fire sale time. GM cannot make it to the next decade without major cost cutting. I cannot see GM management giving any quarter on this one. They will do whatever they have to do to win, or go bankrupt trying.

The funny part is that even if the union wins this one, in 2 or 3 years, GM is out of business and all their members are out of work. You would think that they would know that. GMs books are public, anyone can go to the SEC site and download their latest filing. Unions should have similar disclosure rules.
Mac





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PostPosted: Tue Sep 25, 2007 2:16 pm    Post subject: Reply with quote

kwlafayette wrote:
Unions should have similar disclosure rules.

I agree! What do they have to hide,right? :shock:

As I said in the previous thread, the executive bear a fair amount of responsibility for the situation GM finds themselves in today. Take a look at Consumer Reports and you'll find very few of GM's vehicles rank above average for reliability, durability, etc... and many of them are on their "avoid" list as used cars. Their product line is exceedingly diverse to the point of confusion and although their quality has improved, the competition hasn't been static so they've yet to catch up. That is not the union's fault. The executive picks the product lines, directs the designers and engineers... and executive compensation is an issue as well.

-Mac
FF_Canuck





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PostPosted: Tue Sep 25, 2007 4:08 pm    Post subject: Reply with quote

Quality is still an issue, no doubt. My own take on it, minus the union issues kwlafayette's brought up (and that I agree with) is that GM shouldn't be dedicating so many resources to subcompact and compact development, there's simply no way to beat the Asian manufacturers on that turf.

At most, maybe develop one model of each type, and focus the bulk of their efforts on the pickup / SUV market, where they still have a chance (yet to see a good full-size truck import, IMO). They need to depart from copying European design, and take a stab at introducing a second generation of domestic muscle cars.
kwlafayette





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PostPosted: Tue Sep 25, 2007 4:42 pm    Post subject: Reply with quote

Actually, the domestic manufacturers have all recently put the kibosh on plans for new full sized cars and the like. The modern car market IS small efficient cars, trucks and SUVs are a shrinking market right now, small car segment is growing. The Chrysler Imperial was canceled specifically over fuel economy concerns.

GM ignored the small car segment for at least a decade, selling a 1980s car, the Sunfire, that has not seen a redesign in many years. Yet another factor in their current woes. GM could compete in the 'B' car segment, but a lot of things have to fall into place for them, and pretty quickly. Ford has a presence because they can just copy Mazda designs. Chrysler is in trouble in this segment as well.
kwlafayette





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PostPosted: Wed Sep 26, 2007 11:03 am    Post subject: Reply with quote

On a positive note, all those idle Ontario factories will help Ontario meet their Kyoto targets.
http://westernstandard.blogs.c.....orker.html

All those workers not driving their cars, all the CO2 not going into th air. I wonder why Ellie May is not trumpeting this as a victory for the environment?

The only problem is that th shutdown would have to permanent, to be really good for th earth.

PS. Pink slips should be renamed to Green slips.
Mac





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PostPosted: Wed Sep 26, 2007 4:41 pm    Post subject: Reply with quote

Supposedly, GM and the union have a tentative agreement. That was quick!

-Mac
FF_Canuck





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PostPosted: Wed Sep 26, 2007 7:54 pm    Post subject: Reply with quote

Quote:
The modern car market IS small efficient cars, trucks and SUVs are a shrinking market right now, small car segment is growing. The Chrysler Imperial was canceled specifically over fuel economy concerns.


Fair enough. I won't claim to be an expert on the personal automobile market, and my perception's likely distorted by living in a part of the country where sales on jeeps, SUVs, and trucks are very strong (and probably my own preference, as well).

I was mostly basing my statement on my observation that almost no one seems to want to buy the domestic-produced small cars currently available. I'd say cost seems to be the biggest issue, and branding seems to be a problem as well.
kwlafayette





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PostPosted: Thu Sep 27, 2007 8:41 am    Post subject: Reply with quote

So I would assume that the gas guzzler levy is universally unpopular around your neck of the woods. I live in the city, I work a desk job, I use cars. People who don't work a desk, or don't live in the city, probably need trucks. When you need a truck, no other vehicle will do, and an extra $400 gouge is unwelcome, to say the least.
FF_Canuck





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Location: Southern Alberta

PostPosted: Thu Sep 27, 2007 9:22 pm    Post subject: Reply with quote

Quote:
So I would assume that the gas guzzler levy is universally unpopular around your neck of the woods...


It was a bitter pill to swallow, but thankfully pickups were excluded from the levy due to their applications. I think that it was the first taste of how much the GHG scare was going to cost people, which cause a lot of people around here to look at the issue a little more critically.
kwlafayette





Joined: 03 Sep 2006
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Location: Saskatoon Saskatchewan

PostPosted: Fri Sep 28, 2007 8:22 am    Post subject: Reply with quote

That just might have been the intent, to get people to look at the issue more critically. It is one thing when "those rich bastards" are going to pay for something, but when it is "you", well then it is time for sober second thought.
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