GM

[SUX2BU]

Originally Posted by TOMS1SS

Maybe US workers should take a reasonable wage so these jobs don't go to Mexico? Its about making a buck and not owing things, that's how this all started going to hell in the first place. I sense a lock down coming.

You get out of here with that rational thinking!

[TOMS1SS]

Originally Posted by SUX2BU

You get out of here with that rational thinking!

[a_Username]

In before lock.

[Apex Motorsports]

Originally Posted by oldfriend

Really , or are they using OUR MONEY ????

Originally Posted by fielderLS3

Exactly whose cash are they flush with?

GM pays off its bail out loans
April 2010

GM IPO Raises $20 Billion
November 2010

GM quarterly profits top $3 billion
May 2011

[fielderLS3]

Originally Posted by Apex Chase

GM pays off its bail out loans
April 2010

GM IPO Raises $20 Billion
November 2010

GM quarterly profits top $3 billion
May 2011

Based on the information in those articles, the US taxpayer is still owed $33.7 billion without interest.

[StreetStrip]

Originally Posted by fielderLS3

Based on the information in those articles, the US taxpayer is still owed $33.7 billion without interest.

Not only that, they used other TARP funds to make that initial loan repayment on their original TARP "loan". The ruling class thinks we're all dumb. LOL!

GM's sales were in the tank and they needed some PR to shake the Government Motor's moniker....so what did they do? Well, what any pseudo government organization does, turn to the government where they shuffled money around to make us think they repaid some of their loan.

Read it and weep: http://www.foxnews.com/opinion/2010/...payer-bailout/

[CamaroSkooter]

IBTL

[20Camaro11]

How did this thread make it this long. I missed all of these things last night while I rocked out in Columbus at Rock on The Range.

[2010-1SS-IBM]

Originally Posted by TOMS1SS

Maybe US workers should take a reasonable wage so these jobs don't go to Mexico? Its about making a buck and not owing things, that's how this all started going to hell in the first place. I sense a lock down coming.

It's not really salaries, though. Many US states are extremely unfriendly to businesses (environmental regulations, labor rules, taxes, etc...).

In the OP's original article, GM is spending $540 million on factories in Mexico that will only add 500 jobs. Clearly, the employee salaries are peanuts compared to what they're spending on equipment, land and development.
Why couldn't they do that in the US?

Probably because they'd have environmentalists up their wazoo as soon as they announce construction plans, lord knows how many local construction regulations to hurdle (if they are allowed to build at all, see oil refineries), labor regulations creating uncertainty on whether the plant will be able to produce year in, year out (Boeing just had the same questions with their new 787 Dreamliner plant), and lots and lots of other shakedown artists targetting them.

[StreetStrip]

Originally Posted by 20Camaro11

How did this thread make it this long. I missed all of these things last night while I rocked out in Columbus at Rock on The Range.

What's wrong with this thread for it to not "survive"?

Anyway, I bet ROTR was fantastic. Eh?

[StreetStrip]

Originally Posted by 2010-1SS-IBM

It's not really salaries, though. Many US states are extremely unfriendly to businesses (environmental regulations, labor rules, taxes, etc...).

In the OP's original article, GM is spending $540 million on factories in Mexico that will only add 500 jobs. Clearly, the employee salaries are peanuts compared to what they're spending on equipment, land and development.
Why couldn't they do that in the US?

Probably because they'd have environmentalists up their wazoo as soon as they announce construction plans, lord knows how many local construction regulations to hurdle (if they are allowed to build at all, see oil refineries), labor regulations creating uncertainty on whether the plant will be able to produce year in, year out (Boeing just had the same questions with their new 787 Dreamliner plant), and lots and lots of other shakedown artists targetting them.

Excellent point. These environmental groups think running businesses out of the country helps the environment, when it actually makes it worse in many cases. They can open operations in 3rd world countries like Mexico, Vietnam, China, etc where they are free to pollute at will.

[NicksVSix]

Originally Posted by 2010-1SS-IBM

You should ask yourself why that is, though. Why do American corporations need to move some operations outside the US to make money?

My guess is because Mexicans are willing to work for less money than we are.
Americans complain a lot about illegal immigrants stealing jobs, but the jobs the Mexicans "steal" are often jobs your average American feels they are above working.

GM *could* produce a car made entirely in the USA but it would cost so much nobody would buy it.

[2010-1SS-IBM]

Originally Posted by NicksVSix

My guess is because Mexicans are willing to work for less money than we are.
Americans complain a lot about illegal immigrants stealing jobs, but the jobs the Mexicans "steal" are often jobs your average American feels they are above working.

GM *could* produce a car made entirely in the USA but it would cost so much nobody would buy it.

It's a $540 million investment. I doubt GM's going to risk handing those kinds of assets over to local management just because they can afford to pay them 20% less in salaries or whatever.

For some reason, GM feels Mexico(!) is a safer place to invest in this new $540 million plant.

[The_Blur]

Originally Posted by 2010-1SS-IBM

It's a $540 million investment. I doubt GM's going to risk handing those kinds of assets over to local management just because they can afford to pay them 20% less in salaries or whatever.

For some reason, GM feels Mexico(!) is a safer place to invest in this new $540 million plant.

Here's a bigger question to consider:

Why don't other manufacturers buy or build factories in the US?

Maybe answering this question will explain why US manufacturers feel investment outside our borders makes more sense.