Interesting GM News

[Joe L.]

Pardon this "foray" into the non-technical but I thought this was a very interesting piece of GM news that may have gotten missed given all of the "higher profile" GM news that went with it. It seems that GM is going to be TAKING BACK significant parts of DELPHI and some very familiar old names. Included are Saginaw Steering, Harrison Radiator, Rochester Products, and Delco Electronics. I'm sure the reason for this is that DELPHI is on the verge of liquidation. Without some control over the parts operations involved, this could cause the shut-down of GM manufacturing operations. So, all GM could do was to take back these operations and run them themselves.

The situation must offer some relief for DELPHI employees at these parts manufacturing operations but, unfortunately, precious little. It's sort of like "jumping from the fire into the frying pan", but it is better than just being in the fire.

With these operations gone, virtually all of DELPHI's US manufacturing operations will be gone too. So, aside from its foreign operations, DELPHI is gone----virtually nothing left to liquidate.

It is encouraging to see GM back in the parts manufacturing business again. I hope they stay there.

[Greg L.]

Re: Interesting GM News

That's interesting Joe. I always felt that the more you can do "in-house" the better off you'll be because it's easier to watch over and keep control of costs. Not sure what the reasoning is/was for selling them off in the first place. Nice to see them back where they belong.

Here is a link.

http://www.freep.com/article/20090526/BUSINESS01/305260005/1210/BUSINESS/GM+to+take+5+Delphi+plants+back

[Clem Z.]

Re: Interesting GM News

i never under stood why they got away from "vertical integration" unless they were afraid of the govt stepping in back then when GM got too big

[Jim S.]

Re: Interesting GM News

Note that all the talk is about the hourly workers going back to mother GM. Hourly workers getting up to $115,000 buyouts along with a $25,000 car voucher. Hourly retired workers losing their eye and hearing benefits. Not a word about what is going to happen to us salary retirees (who have already lost our health, eye, hearing, life insurance, and dental benefits).

I am just sick as to what they are doing to us salary retirees.

Jim

[Bill M.]

Re: Interesting GM News

GM sold of divisions to create false profits and to shed pension comitments. Typical greed of the past

[John D.]

Re: Interesting GM News

If you read the details of the agreement, retirees also lose coverage for Viagra, Levitra and certain types of um....er.......pumps.

[Clem Z.]

Re: Interesting GM News

Note that all the talk is about the hourly workers going back to mother GM. Hourly workers getting up to $115,000 buyouts along with a $25,000 car voucher. Hourly retired workers losing their eye and hearing benefits. Not a word about what is going to happen to us salary retirees (who have already lost our health, eye, hearing, life insurance, and dental benefits).

I am just sick as to what they are doing to us salary retirees.

Jim

obama knows you salary workers did not vote for him. they think us salary workers were educated enought to prepare for your own retirement or you would not have had the salary job. they are looking out for the workers that will vote for them because they need the govt to help them keep going along.

[Bill M.]

Re: Interesting GM News

What about sex change operations?

[Jim S.]

Re: Interesting GM News

Look what is happening to the bond holders. They are the bullwork of capitalism. Structurally they are supposed to be first in line to be paid off if a corporation is in trouble. Obama has shoved them to the bottom of the pecking order. For their faith in the capitalist system they are to receive a paltry 10% equity in GM behind the UAW and the Federal government. The same administration threatened the Chrysler bond holders and told them to toe the line or suffer the public wrath of the White House. (An action that was denied by the Oboma administration.)

Jim

[Chuck L.]

Re: Interesting GM News

You'd best get it done before June 1st!

[Duke W.]

Re: Interesting GM News

Look what is happening to the bond holders. They are the bullwork of capitalism. Structurally they are supposed to be first in line to be paid off if a corporation is in trouble. Obama has shoved them to the bottom of the pecking order. For their faith in the capitalist system they are to receive a paltry 10% equity in GM behind the UAW and the Federal government. The same administration threatened the Chrysler bond holders and told them to toe the line or suffer the public wrath of the White House. (An action that was denied by the Oboma administration.)

Jim

I read that the bondholders have been offered 10 percent of the "new" GM for their $27 billion face value of bonds, and the UAW is getting 20-30 percent for their $6.5 billion in pension/medical liability.

It's clear what this deal is all about.

Anybody wanna buy bonds?

Duke

[Clem Z.]

Re: Interesting GM News

elections have consequences and if the conservatives had been keeping track of the financial community and this financial meltdown would not have happen the conservative might still be in charge. they were too busy trying to get reelected to mind the store and let the big financial companies run the country and you see what happen. they can not blame anyone but themselves for the election results

[Clem Z.]

Re: Interesting GM News

Look what is happening to the bond holders. They are the bullwork of capitalism. Structurally they are supposed to be first in line to be paid off if a corporation is in trouble. Obama has shoved them to the bottom of the pecking order. For their faith in the capitalist system they are to receive a paltry 10% equity in GM behind the UAW and the Federal government. The same administration threatened the Chrysler bond holders and told them to toe the line or suffer the public wrath of the White House. (An action that was denied by the Oboma administration.)

Jim

GM was not able to get enough bond holders to agree to swap their bonds for stock. The U.S. Treasury had told GM that if it could get 90 percent of debt holders to agree to that swap, it would NOT force the company into bankruptcy. But we know that many bondholders bought insurance on their bonds and would get all of their investment back if GM went into bankruptcy. And so that looks like exactly what is going to happen. so don't feel bad for the bond holders.

[Duke W.]

Re: Interesting GM News

...just read an AP story that bondholders have overwhelmingly rejected the 10 percent equity offer. A bankruptcy filing is now virtually certain.

The CDR payoffs may cause more fallout on Wall Street.

Duke

[Clem Z.]

Re: Interesting GM News

...just read an AP story that bondholders have overwhelmingly rejected the 10 percent equity offer. A bankruptcy filing is now virtually certain.

The CDR payoffs may cause more fallout on Wall Street.

Duke

guess who insured the GM bondholders,AIG