GM is pathetic!

[Boyd]

They get billions in bailout (er, bridge loan) money and what's one of the first things that they do? They cancel plans for a new $370million dollar engine plant that would have provided engines for the new Cruze and Volt and hundreds of new jobs in the US - and send production overseas to Europe.

http://www.autobloggreen.com/2009/01/28/breaking-gm-reportedly-cancels-construction-contracts-on-flint/

Does GM not have anyone employed in the PR department that knows what the hell they are doing?

One of Obama's campaign items was to stop giving tax-breaks and other benefits to companies who send jobs overseas. I hope someone on his staff finds this.

[moreHP]

Thats a shame. I would much rather see the jobs and money stay on US soil.

[Mkelcy]

They get billions in bailout (er, bridge loan) money and what's one of the first things that they do? They cancel plans for a new $370million dollar engine plant that would have provided engines for the new Cruze and Volt and hundreds of new jobs in the US - and send production overseas to Europe.

http://www.autobloggreen.com/2009/01/28/breaking-gm-reportedly-cancels-construction-contracts-on-flint/

Does GM not have anyone employed in the PR department that knows what the hell they are doing?

One of Obama's campaign items was to stop giving tax-breaks and other benefits to companies who send jobs overseas. I hope someone on his staff finds this.

I read the linked article, and think your summary is very misleading. GM says it always planned for initial production to come from existing plants in Europe, and that it still plans to shift production to the US. The "cancelation" simply allowed it to aviod spending money it doesn't have for a plant it doesn't need yet.

[6'9"Witha69]

Simple economic question: To create some more jobs to last about a year before bankruptcy, or keep the jobs you already have for a longer period of time in hopes to regain profitability and hopefully shift more jobs back here long term?

I think short term savings long term reward is key to their survival right now.

[Boyd]

I get both points, and I admit that I'm being a little harsh in my assessment, but I still don't like it.

So GM is simply sticking to their original plan with the engine plant, but their plans should have changed when they asked for billions of taxpayer money. As it stands now, the US gov't is loaning money to GM so they can keep European workers busy.

You should always take care of your own first, especially when you're asking for taxpayer's money.

[trapin]

Boyd, this is actually not anything to get worked up about. We all knew this here in Michigan. As soon as the economy comes back that plant will happen and Flint will get it's jobs. It's a major political issue with the state. GM would be commiting political suicide if they go back on it.

By the way...you don't have to apologize to me for any criticism you might have for GM. This is a free website and a free country. Fire away bro! :)

[Martin71RS]

Boyd, I think you have to stop to look at it as a US problem...problems are worldwide and so are the solutions. In this day and age there is a global ecomomy, not just a domestic (local) one. I know our government (we are in a small country) is also pouring billions into banks and companies, and those are operating worldwide (like ING bank e.g.)

Martin

[James OLC]

If anything, I think that this move shows a great amount of financial responsibility from GM. I think that it is a positive indication that they are really looking at where they spend what capital they have available at this point in time.

If you want to look at the counterpoint to this action - could you imagine the outcry from the media, public, and goverment if it was found that GM was spending millions (10's of millions?) building a brand new state of the art facility for future models while shuttering existing facilities and letting existing workers go? Especially if there is no assurance that the new Cruze or Volt will ever make it to market?

[Boyd]

Martin, you make a very good point. It's just a very frustrating situation with no clear solution. Here's to hoping both sides of the Atlantic get it figured out.

[paul67]

The reason they have moved the engine is that the dollar is realy strong at the moment so making imports from europe cheap,which is why I cannot afford to buy any bits at the moment.

[Mkelcy]

The reason they have moved the engine is that the dollar is realy strong at the moment so making imports from europe cheap,which is why I cannot afford to buy any bits at the moment.

Just wait a while. Once we're done printing money, you should be able to pick up an LS3 for about 5 Euros. :)

[cluxford]

The challenge is globalisation.

Just about everything we buy has some element of overseas input from conception to sale, and I mean everything, even basic food items.

The challenge is that sure pumping millions and billions of local tax payers money to see a global corporation investing offshore sucks. But it is the same the world over. Nearly every country in the world has some form of stimulas package to help ailing ecomonies, fair bet that a significant amount of that tax payer funded hand outs end up in the hands of overseas companies, no matter whih country you live in.

I live in Australia and it is the same here.

[Hidro]

Just wait a while. Once we're done printing money, you should be able to pick up an LS3 for about 5 Euros. :)


Haha the way its going who knows.. :)

[shmoov69]

One of Obama's campaign items was to stop giving tax-breaks and other benefits to companies who send jobs overseas. I hope someone on his staff finds this.
:rotfl::lol:
ROFLMAO!!!! BAAAHAAAAHAAAHAAAAHAAA!!
You are not serious are you!?!? LOL!!!:wedgie:

[monmon030791]

I love gm!.

[Damn True]

Boyd, I think you have to stop to look at it as a US problem...problems are worldwide and so are the solutions. In this day and age there is a global ecomomy, not just a domestic (local) one. I know our government (we are in a small country) is also pouring billions into banks and companies, and those are operating worldwide (like ING bank e.g.)

Martin


Do Corporations and the Government of the Netherlands consider the impact of their actions on the United States economy?

I'm not going to get all isolationist here or anything, but the first concern of the US Govt should be (but currently isn't) the security, success and the building of wealth among US citizens. Period.

The first concern of a US Corporation should be profit. Period.

If you don't believe the two are interdependent you shouldn't be allowed to vote.

[slowcamaro]

I hate Segway.

[elcamino80]

Do Corporations and the Government of the Netherlands consider the impact of their actions on the United States economy?

Those of Finland doesnt for sure but our population is smaller than that of new york city alone.


The first concern of a US Corporation should be profit. Period.

By doing this I think GM is actually thinking of profit overall.

One thing though, profit doesnt seem to be enough these days, it has to be a huge profit to be any good. The company I work for made its best result ever last year but still we all got temporarily laid off for a couple of weeks. The bonuses still gets paid to the big bosses which amazes me even more

[Martin71RS]

True,


Do Corporations and the Government of the Netherlands consider the impact of their actions on the United States economy?

government yes to an extent (when the US does well, we benefit), companies...? dunno


I'm not going to get all isolationist here or anything, but the first concern of the US Govt should be (but currently isn't) the security, success and the building of wealth among US citizens. Period.

agree...so should ours do for us.


The first concern of a US Corporation should be profit. Period.


replace "a US" by "ANY".....


If you don't believe the two are interdependent you shouldn't be allowed to vote.

true, True.

[Roadrage David]

The reason they have moved the engine is that the dollar is realy strong at the moment so making imports from europe cheap,which is why I cannot afford to buy any bits at the moment.

Im sorry the dollar aint worth a crap right now.
When the euro was introduced both dollar and euro where at the same rate of valieuw.
Now you guy,s pay $$1.31 to buy a euro and a couple of months ago you had to pay $$1.50 to buy a euro.

Lots of Dutch multinationals like Shell ING ecetera ecetera have big $$ investmends in the USA. the finantional bank/ morgage disasters of the US banks have cost and turned into a global snow ball efect to sutch a ecstend that it hase become a world wide econemy resesion/crisis. second in size to the wall street colaps in the 30,s.... its not just a USA problem anymore.
Thanks to your banking system ecetera. people countrys all over the world are suffering......

[Damn True]

Thanks to your banking system ecetera. people countrys all over the world are suffering......

Get your facts straight before you say something like that. That is an enormous fallacy. Financial organizations all over the world traded in securitized debt (derivatives) and in many many cases lobbied for similar securitization in their own commodities markets.

Some didn't. Those are the companies that are currently doing well and absorbing the mismanaged businesses of those that did.

No reason for this thread to continue. GM made a sound business decision. Done.