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Look what we git for bailin out GM

Discussion in 'Pull up a chair and sit for a spell' started by cardboard, May 20, 2011.

  1. cardboard

    cardboard Well-Known Member

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    Thanks For The Bailout Suckers; GM to invest extra $540 million in Mexico to build motors | Red White Blue News

    This is from a Dude that bought a GM and how he feels about it.



    GM creates 1000 jobs in mexico... the US taxpayers bail them out (not entirely willingly), then help make them viable again by buying cars from them and now they're walking accross the border...

    side note - why do we have a immigration problem? mexico has jobs popping up EVERYWHERE down there. they're below 6% unemployment! and their unemployment numbers have been shrinking for the past 4 yrs i think. IL's number just fell below 9% for the first time in a looong time (on par with the US i guess).
  2. FLHTbiker

    FLHTbiker Moderator Staff Member

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    I agree with GM, if they get rid of the unions then they could afford to build em here again. You take a tire changer at a Japanese auto plant here. Say they get about 10.50 and hour (no skill job and no union). You take the same position in a USA auto plant, 30+ an hour, still the same unskilled labor job. Plus you pay em full med. huge retirement accounts plus more bennies and more bennies. No wonder the USA auto makers have to go outside the USA to build their stuff and compete. The unions were good in there day but now there dragging down the companies so much so that they cannot compete at the same level.
  3. JohnnyBiker

    JohnnyBiker Well-Known Member

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    Are you suggesting that GM or any car manufacturer for that matter is going to pass the savings that they get for moving down to Mexico to us??? Cmon FLHT, you know that isn't going to happen...:banghead: So what is the "benefit" of having those engines built down there?????

    I agree with your take on the unions though.......
  4. FLHTbiker

    FLHTbiker Moderator Staff Member

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    Pretty simple JB, so they are not strangled to death and don't have to be bailed out again and can stay in business. Simply a business decision
  5. JohnnyBiker

    JohnnyBiker Well-Known Member

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    Just hurts the U.S. GDP.....And they will still charge the same amount of money for their crappy cars....So where is the benefit??? If we are that many jobs less, how does this help the AMERICAN people????? Just because they aren't union down there doesn't mean that the savings that GM benefits from will be passed to the American people, just more profits for them, but that means more Americans out of work......if more Americans are out of work, how are they to afford things such as housing, new cars and other things??????:banghead:
  6. FLHTbiker

    FLHTbiker Moderator Staff Member

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    Get rid of the unions here in the USA and there will be jobs coming out your ears. I'm not a big fan of the unions and never will be.
  7. JohnnyBiker

    JohnnyBiker Well-Known Member

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    I am not a fan of unions either.. BUT, if I had a choice of having an American employed in the U.S. through a union and or having the union dissolved because it move out of the country for cheaper labor and taking jobs away....I would go with the union, just to keep those jobs in the country and Americans employed.......
  8. FLHTbiker

    FLHTbiker Moderator Staff Member

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    JB, I don't think your understanding my point. I said if they didn't have the super high cost of labor and all the extra bennies then they would not be down in Mexico having to build cars or engines. I think its purely a business stand point and not an anti American issue.
    I own a Ford, Dodge and a Chevy all are great. :) night.
  9. cardboard

    cardboard Well-Known Member

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    The union auto workers here git over a hundred dollars a hour with benefits man.:cussing:
  10. hotroadking

    hotroadking Super Moderator Staff Member

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    On GM

    The problem is that GM has a cost basis on us production of about $3000 per car before they build the car just to cover the benefits of the union employees, so the competition can put more into the car than GM can, and make more profits.

    So before they put the first part together GM is -$3000. All Union expenses, this is before management overhead, cost of goods, production costs, raw materials, marketing expenses, etc.

    Profits

    Should GM get to make profits, Yes, so they don't have to borrow taxpayer money to keep operating, or pay huge interest fees to foreign banks to borrow funds to operate, and you can invest those profits back in the company in new plants, car designs, upgrading equipment, more jobs. Profits are good, profits make companies grow, profits create jobs.

    Remember the goal of a company is not to simply pass on savings found through whatever means to you or I, there job is to deliver the product to market that the consumer wants and to do so in a manner that creates the best return on investment for the shareholders. IF it means reduced profits or margins to meet market, they have to do that, if it means invest profits into blueteef head sets and vibrating seats, they do that.

    That's why a Kia has 100K warranty 10 years and more gizmos than a Chevy, same for Honda et al, you would get better cars and more things in the car and the price point would be determined by what the market will bear.

    Somehow folks think that companies shouldn't profit from their purchases or profit too much, amazing concept that companies should create goods that you can buy at a minimum profit so you get to pay less.

    Lets make the return reduced costs (profits) to people argument on a personal level:

    See how it fly's

    How about we look at your job and then we restrict the amount of money those same people who complain about profits could earn at their jobs to an even level regardless of work effort they'd be first in line screaming unfair... Say you were making $50K, but nationally that job pays $35K,, you need to take a pay cut, you are "PROFITING" and the savings could be passed on to a consumer...

    JB, what if you went to sell your home and could realize a $50,000 gain, and you would use that $50,000 how, it's profit, remember, would you buy a better home? Would you pay down debt? Would you invest? Buy that shovel? LOL

    Now wait! Based on the theory that companies should return profits to the consumer and not kept by the entity/individual that earned it, the gain is too much. The person buying your home shouldn't have to subsidize JB's future plans right? So lets cut that profit to $10,000, because, well that's nationally reasonable, and we should return the profits to the people......

    How's that sound....

    JB not picking on you but just personalizing the response about profits...
    and no I did not restrict your PM's LOL
  11. Fatboy128

    Fatboy128 Well-Known Member

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    and to top it off, it's 6:30pm here in the east and we're still here! Did Mr. Camping mean the end of the world is at 6pm Eastern time or some other time zone? I hope I didn't charge up all my goodies and will have to pay for them? OMG!
  12. hotroadking

    hotroadking Super Moderator Staff Member

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    just got back from a couple hundred mile ride,
    hot'er n hades...

    phew it's back to night riding and
    am rides for bfast home by 10 no later than 11
  13. FLHTbiker

    FLHTbiker Moderator Staff Member

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    You would like riding here in the late spring, summer and during the Indian summers we have in the fall. :)
  14. JohnnyBiker

    JohnnyBiker Well-Known Member

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    HRK, I guess I am a little confused as to why the argument about unions or non unions??? I do not like the unions. I, like FLHT think that at one time unions were necessary, but think that they have outlived their usefulness and have become a destructive force rather than a helpful one...I will never disagree with how the unions affect you and I.
  15. JohnnyBiker

    JohnnyBiker Well-Known Member

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    With this being said, of course I think that GM should be allowed to make money, but the problem is that they are back to giving the outrageous bonuses on the borrowed dollar and they now want to move JOBS out of the U.S. What is so hard to understand about how disruptive this is?????? Yes it is a good thing....But for who????????? Not you or I who ends up on the bread line because they want to make more money...which I do not have a problem with.....Listen, the American people unwillingly bailed them out of trouble and they repay us by wanting to move jobs out of this :gah:country??????:gah::rant::cussing::wtf: How are people going to afford to buy their cars if no one has a job to pay for it????

    You kind of answered your own question with your comparison of KIA to Chevy. If Chevy cannot find a way to stay competitive, and do it without borrowing from you or I, then maybe they do not deserve to be in business. This is what got them into trouble.....lack of real innovation!!!
  16. JohnnyBiker

    JohnnyBiker Well-Known Member

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    You asked if I were to make a 50k from the sale of my home what would I do.. I would pay down debt.....I hate debt. If I have 50k worth of debt after the sale of my home, then I made no progress at all. I may have just barley made a profit or just broke even or maybe I still owe???? What did Chevy or Dodge really learn from getting bailed out???

    KIA has about 5 models. How many does Chevy and GM have?? How about Dodge???? Most of these two companies models are all the same plus or minus trim, and interior package? They have over extended themselves and they haven't learned to stop....

    So is it really the Unions fault that this happened????? Good business means that you adapt to your environment. GM and Dodge didn't do that. Ford did.
    Speaking of Ford, Ford has all of those gizmos that you speak of that KIA has, they were in that 09 F-150 that I was looking at, and Ford makes money, stays in the U.S. has the same unions and didn't ask or receive one dime from you or I to do it. Going to a place that has no unions will never compensate for shiitty management.....
  17. FLHTbiker

    FLHTbiker Moderator Staff Member

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    JB, where was your F-150 made?

    Ford has plants in Mexico as well as Canada
  18. Lucifer

    Lucifer Well-Known Member

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  19. Tomflhrci98

    Tomflhrci98 Active Member

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    Complain all you want but don't forget the reason unions started was because of the greediness of managers taking all the profits for themselves and creating horrible conditions for the workers.

    The reason they get 100 grand w/benefits like Cardboard says is because it was negotiated during profitable times when the managers where getting 100 Gs or more in bonuses every year. All of a sudden the company starts to go down and now its the Unions fault???:witsend:

    I'm not saying I am totally pro union, I know they got their issues, but you have to explain all the elements. Don't just jump on Unions and not look at what the managers and executives are doing. They ain't without blame my friend.
  20. FLHTbiker

    FLHTbiker Moderator Staff Member

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    Unions have outlived their usefulness and are now a detriment.

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