A mathematician's dream (always fun to play with numbers .... LOL)

Re: Better Heads Than Mine (Which Is Most of You), Speak! -- CPMariner
Posted by RichAndPretty , Tue, Nov 18, 2008, 13:45:28 Post ReplyTop of ThreadReviews by RichAndPrettyFirst Amendment Message BoardMain BigDoggie.net site
Considering GM lost about $1000 for every car they sold, think how much better off they will be by selling only 12MM cars instead of 16MM. In fact, if they get down to where they are only selling 1MM cars/year, $25 billion could keep them in business for decades .... LOL.

Yeah, the problem with the Shrinking Three is that their current business plan is not viable on MANY different levels. Of course, the biggest problem is that they aren't making a product enough people want to buy, but even if sales stayed at 16MM (or even went to 20MM), they are saddled with UAW contracts and pensions that hang like an anchor around their bottom line, and it is damn near impossible to swim with it.

The health care and pension numbers alone are probably insurmountable. Health costs have greatly increased and people are living longer, not a good combination for a company that provides lifetime coverage to retirees. Seemed like a good idea at the time, but not so much now that it is time to pay the piper.

Bottom line: "Medium Thrtee" need to RESTRUCTURE EVERYTHING, from their product line to their business operations and company obligations; and IMHO, they can only do this through Chapter 11 (and it will be painful to both their current employees and retirees).

RAP

PS: Wagoner (and Pelosi) want us to believe money alone will allow them to turn things around, but I don't see how that is possible (but have a feeling government gonna buy it anyway .... BEEP BEEP).


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