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Politics : The Obama - Clinton Disaster
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To: GROUND ZERO™ who wrote (6929)2/16/2009 10:51:58 AM
From: DuckTapeSunroof  Read Replies (1) of 103300
 
Re: "I'm not looking to bust the dealers' contracts,"

Then you are not going to save any real money at all --- because GM has WAY too many all-too-similar brands that they will HAVE to consolidate to become viable again... and they have signed contracts with their franchises for those brands which (if they had to pay for canceling) could cost them perhaps as much as $100 Billion or so.

Not to mention tying them up in courts for a decade.... :-)

(Nope... the *only* viable way to reduce their too-high expense structure from all those franchise contracts, vendor contracts, bonds, pension obligations, and union contracts (in THAT order of expensiveness...) is to use the excellent federal bankruptcy system to FORCE the hair cuts.

Re: "...just the people on the floor of the auto factories that get $500.00 an hour for doing what a caveman can do..."

(Pretty sure that no such mythical creature exists.... Unless they are working along side unicorns on the assembly lines. FYI --- the *average* hourly wage there currently is roughly $28/hr., and the buy-out offers they are pressing for the entire 90,000 some hourly workers are designed so that they can move these higher-cost older workers out, and replace them with much younger guys working for approximately 1/2 that rate.)

Pretty sure they (GM) are gonna get the haircut for unions that they desire... but that's small potatoes next to the dealer and vendor contracts they have signed, and the bond holders.

Without slashing the expenses of THOSE TWO biggest ticket items, they have *nothing*.
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