"How many employees will be sent to jail? GM should be decommission after all the lawsuits and the $500 Billion fine."
"Look buddy this is business they did what they needed to do to make money, the families will now get a nice payday so everybody wins in the end."
You both are a waste of space.
"..........."KNOWINGLY" and "WILLFULLY""
OK, my mistake. It was a slow afternoon so I peeked at some of the posts that I normally have on ignore thinking that maybe there was something interesting. I was wrong.
" I better put in something about those dead teenagers who unfortunately for them were not wearing their seat belts and that good ol' boy who unfortunately had a few too many under his belt,."
Well, here's my spin...I think you're just a mean, bitter old man. I don't know or care why, but you seem to have a negative view of everything. Too bad.
"I wonder how executive bonuses will be handled next round? I wondering if these events will impact their incomes?"
It most certainly will. Although as I said earlier bonuses and options are based on attaining predetermined targets on several metrics, financial performance is ALWAYS the predominant metric. The other thing is there are no excuses, it doesn't matter WHY targets aren't met.
I remember when the UAW strike at Flint Metal Fab destroyed the bonus pool that year, although as I recall, we did get SOME because the other metrics were met such as initial quality and warranty. But it was a minor part of the bonus eligibility.
"First I don't think they should get free shares that delute paying share holders shares.. Profit sharing should be a % of base salary."
Jeye: A couple of points on executive compensation:
1. Companies like to make stocks and options part of an executive's comp package because it provides an incentive for the executive to identify with stockholders. If the stockholder does well, the executive will do well and vice versa.
2. Many executives would RATHER to be paid entirely in cash because it is less risk.
3. Most executive compensation formulae have more dimensions besides profits as a base. Many (including GM) have things like warranty performance, JD Power ratings, return on equity, etc. as things to be included in determining an executive's bonus.
4. Stock options have a longer term payout than bonuses. In GM's case, no options can be cashed prior to one year after award and then only 50% of them. The other 50% can be exercised between years 2-10.
The company uses the compensation formulae to assure that the company's leadership is working on the company's priorities.
"The fortunate position that GM is in right now, really good revenue and reasonable profit levels, makes it a less difficult pill to swallow."
They had really good mix in June also. They sold 167,259 trucks vs. 100,202 cars.
"lol. That's what the drug dealers who flunked out of highschool drive in my neck of the woods..."
They drive Impalas?? Man, business must be pretty poor in your neighborhood.
"I think you guys are going to get creamed in 2Q14."
I'm not trying to be a smart #$%$ here, honest. But consider the following:
1. When a company announces ahead of time they are taking a special charge for any kind of item, that announcement is to make the market aware so it's not a surprise. It is to avoid a privileged few having inside information. The company will take a hit to profit and escrow the money for future expenses due to the issue. It will be doled out as required going forward, but it won't affect future earnings.
2. The good thing for the company is that it clears the deck going forward. The only way that this particular issue should affect future earnings is if the company has misjudged the cost of the issue. Typically they will review the charge with the public auditors to test reasonableness.
Here are the questions I still have that need to be answered (and should be asked by analysts):
1. How much, if any, has been set aside for the compensation fund? I know they have made some kind of estimate even though they say it is not capped. If you have downloaded and read the rules as I have, there's a pretty straight forward methodology in determining the compensation for each known victim. I would guess they have priced that out as well as added some additional for unknown victims (the number of deaths will be greater than 13 because they have expanded the eligibility for back seat passengers, side impacts, etc.).
2. Are there more recalls planned? My guess is that they would have liked to have everything out there by yesterday (the end of Q2). I think someone mentioned that it was circulating inside the company that there would be more through the end of June a week or so ago.
Assuming the answer to the above two questions are satisfactory and nothing more coming, the company will be just fine, meaning there are no more surprises. Big money hates surprises.
The only remaining issue will be the underlying earnings.
"If my 34 yrs in the market mean anything, I'm guessing you are exactly right. Many won't know about this until they drive home and hear it on the news. This will not be the end of the selling unless we see a deep V-bottom before today's close."
"There seems to be an effort to keep it above $36 but there's no way people are going to ignore a $1.9B charge in 2Q tomorrow."
I thought it was $1.2 billion, but your point is valid. Even I'm wondering what the $%^& is going on down there now. They better start explaining this 'death by a thousand cuts' strategy they seem to have.
"That's the best thing GM has done in a very long time.....kudos to them for finally 'getting it'."
So Cobra, as a business owner, how do you feel about the Supreme Court ruling. Oh wait! You've exposed yourself. We now know you are nothing close to a IT business owner, that you are merely a IT consultant that's drifted around for several years.
I won't expose your name on the internet but I will give you two pieces of advice:
1. Stop spreading the BS about owning your own business.
2. Erase all the posts that you have accidentally made using your real name immediately.
Do it or not, it won't take other long to track you down like I did.
"I'm seeing a bunch of them all of a sudden."
It's about time that CA caught up with the bellwether state of MI.
"But just reading your post goes to show how insecure you really are, and that your business could not survive without using unethical methods."
Based on recent developments with Cobra, I don't think that we should get too carried away thinking that he is a business owner. In fact, he may be something entirely different and has been lying/fantasizing all this time. He may be in the IT business, but I don't think it is as an owner.
"I know what you did at GM, and people like me would call you "sir". I also understand the gravity of your position. A small business is not a comparison if that is what cobra is asking for."
Thanks John, but you would have been the ONLY one calling me 'sir'. :-)
"Renault-Nissan, Daimler launch plans for $1.4 billion small-car plant in Mexico"
"Daimler AG and Renault-Nissan plan to invest 1 billion euros ($1.36 billion) to develop small cars and build a factory in Mexico,"
This was entirely predictable, Jeye. What would you do about this if you were King of the world?
"In a perfect world, this would have never happened. That being said, GM is to blame. People were at fault. People got fired."
This was NEVER in dispute.
"I understand you do not own a company, therefore have the luxury of not having to worry about stuff like this."
Listen meat head, I'm pretty sure I ran an organization at least 50X bigger than your "rent-a-coder" business, if in fact you are who you say you are and that is by no stretch accepted, at least by me. So please don't try to peddle this condescending 'you would never understand' BS here. And count on this...whenever you exercise this habit of making glorious, unsubstantiated proclamations regarding what we commoners will never understand like we should fall down at your knees enthralled with your knowledge, I will call you on it and expose your lack of basis.
Furthermore, if you try to ignore my request for additional information, I warn you now that I am not easily deterred.
"You and your ilk need to decide if you want to make yourselves feel better in the short term, or if you want to win elections. I repeat: This kind of nonsense appeals only to existing Hillary haters. With the great uninformed middle it will only engender sympathy for her.
Knock yourself out if you want to - just know that it's counter-productive."
Well said Cheblammo! And my opinion is....ditto.
"One thing you need to learn. In today's world, people are companies and companies are people. This you can only understand if you are an exec or own a company."
Oh, I see. I could never hope to understand these deep concepts. I always thought that companies were a group of individuals and the personality and demeanor of the company were the collective intellect, judgement, and strategic ability of those people. And I thought that the reason that companies had "spokesmen" is to articulate the policies and views of the company since it is ludicrous to think that the company can speak for itself. But alas, I haven't had the rich history that you have in leading large organizations.
But wait!! You said "People lied, GM paid." I think that's what I said too. So now we are full circle, people lie, not companies.
It's still not clear to me what "lie" you think the company is telling or who is telling the lie, but a lot of things you say are not clear to me (since I am not your intellectual equal you see).
I'm learning that you have these "feelings" about things. That's good, people should have feelings. I'll just have to keep in mind one of two things when I read about your "feelings"; 1) There is no evidence to support your feelings, or 2) You are unable to articulate any reasonable arguments to support your "feelings".
Now that I have come to that understanding, I will disregard your incorrect "feeling" that somehow the VP of NA Manufacturing was involved in this issue,