"Yet GM can not bring back profits from anywhere outsideof North America without paying US taxes on it!"
Why would they want to? China is a faster growing market than the US is, that's where most of the capital will be needed.
"Nothing for GM to spend $43 million on 5 employees."
If I could pay 5 people $43 million to run my company (don't forget that about half of that is dependent on making goals set by the company) and make $5 billion for me (or even $1 billion), I would do that EVERY time. Every single time.
"Will UAW go out strike? UAW wants one pay for everyone GM wants 3 tier pay. Very far apart and Obama no strike rules are expired! What will happen in a few months could decide if GM survives!"
GM will survive. It's only a question of WHERE they will survive. If the choice to GM is whether or not to sign a terrible contract, they will sign it to keep operations running. Then they will begin to accelerate the movement of operations to lower cost countries.
It's like the old story of the frog immersed in hot water, they'll do it slowly but surely just like they've done for the past 20 years. They are going to invest $16B in China and $5B in the US. See how that works?
"Oh man....you musta just fallen off the banana boat last night."
4:1 is a well accepted number in the industry. Whenever I went before a tax committee or city council to request a tax abatement for a capital program, we used a 4:1 ratio for cost/benefit calculations for the city/state. It was a pre-agreed number.
"Smart move dopes, chasing cheap labor, got what they deserve ....shut down"
GM only has less than 3000 employees in Venezuela, not a big deal. Besides, in many countries you have to have operations in-country to sell there.
"The real killer of GM was its soaring health care costs."
I believe that is a sub set of poor geographic decisions. Most of GM's operations were, and are, for that matter in high cost countries resulting in high cost contracts (including health care costs). That was partly remedied at least for post retirement employees just before the bankruptcy.
The remaining problem will be remedied by moving more operations to lower cost countries.
"Bankrupcy filing, look at 363 reorganization. The union was owed $20B and received $9B in new bonds and pfd stock [paying 9%] plus 420m shares in the new GM."
"The UAW V trust has a $28 per share basis on the 420m shares they were given. This is where the taxpayers money went"
I'm not doubting you, it sounds about right, but I'm interested where that information can be found.
"The only way small cars sell in big numbers is if the government forces it through high fuel economy mandates and/or onerously high gas taxes."
Couldn't agree more Cheblammo. Bob Lutz used to say that mandating fuel economy standards is like trying to cure obesity by outlawing L and XL sizes in clothing.
"Can you provide a synopsis of what you want folks to get out of this article?"
Sure, it's a pretty dumb business plan to try and make people buy something they don't want. Of course, this President has surrounded himself with subordinates that have never had P&L responsibility, in fact, many never had a job in the private sector so he, and they, have no concept of this. At least with Governors, they have actually had to solve problems...not just make speeches.
He believes he can make a speech and they should do whatever he says. And why would he believe otherwise? He made speeches saying he wanted to be President of the United States regardless of his qualifications, and we (the collective 'we') elected him.
"CEO Received $16.2 million in 2014,"
You clearly don't understand executive compensation. That's what she COULD make if the company makes certain goals. Much of it are stock options valuated by the Black Scholes methodologiy. Look it up, you will undoubtedly learn something.
It won them a Nobel prize.
BTW, to answer your next question, it cosy about $12 to ship an engine from Mexico to Canada by rail. We saved roughly $160 in labor and labor related costs.
Yes, when you understand all the facts, it makes perfect sense.
"It doesn't make sense to put a Mexician assembled engine in when they build the engine also in Canada."
Yes it does, it makes perfect sense.maybe not to you because you don't understand the content laws between the US and Canada. In order to ship goods into Canada, you are required to equalize value added content, i.e.,, you have to balance the added value (including labor) for the products shipped in as well as the products exported. Since Canadian labor is about as equally uncompetitive as US labor, we didn't want to make one more part in Canada than we had to.
"Would you care to explain?"
I have on many occasions Jeye. You don't want to hear it. That is the very attitude that is making the UAW extinct.
"I suppose so ......Well, what's $350M swing between friends anyway."
I don't get $350. It went from $400M to $550M.
Besides, you're talking about two different things as I tried to point out. One issue is the cost to repair (that charge should be pretty solid) and the other is predicting how many people would be compensated by the special fund (that is more variable).
Bear in mind, these estimates are calculated with much more data than we have. And by the way, audited by a third party before they are published.
"Too bad they had a negative swing in Russia and China to offset THAT"
Both GME and GMIO had POSITIVE swings in EBIT. See charts 3, 15, and 17 in the chart set
"GME achieved improved Y-O-Y performance and continues to reduce losses, despite
headwinds in Russia"