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Originally Posted by rgrizzard
Thats not entirely correct. The new contracts and restructuring don't take place until 2010, and 25 billion won't get them there.
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Yes...and no. White-collar workers 65 and older have no company-provided healthcare coverage effective...a month ago, afaik. A few plants are due to close in 2009, with more following in 2010. They've sold off some assets, thus lowering operational costs. They've bought off many employees both white and blue collar into early retirement over the past few months. They've restructured managment to make it more streamlined in the different brands; condensing 8 different brands into 4 managerial structures. And new hourly employees are making ~15 bucks an hour plus reduced benefits...afaik, there's no delay on that. Also, new vehicles were part of the restructuring, and those are out right now with more to follow.
What's delayed is the VEBA plan. Which shifts a massive healthcare burden off of GM. They've got nearly a million retirees, old retirees, they're supporting right now. Taking those costs out of the equation is a huge deal; and that's what the 2010 date is about.
I don't know if the 25 billion will sustain them. But if it won't; then they'd be asking for more...so I'm inclined to believe it will under current, sucky, conditions.
Quote:
Originally Posted by rgrizzard
If they file Chapter 11 they can still operate as a business and a judge can get rid of their unions and pensions alltogether... Thats what they really need.
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But that is under assumed ideal conditions, like four years ago...and that is what chapter 11 proponents fail to realize: We are far from perfect conditions right now. Entering into Chapter 11 protection will all but ensure they get forwarded to Chapter 7 liquidation for a varitey of reasons. Bye-bye Auto Industry.
