Funny how the GM executives always seem to escape the sacrifices...

General Motors Corp. will suspend contributions to 401(k) retirement savings plans for its U.S. salaried workers as part of efforts to trim $7 billion from annual costs.

The 36,000 employees were told Wednesday that the contributions would end Jan. 1. The company said it would "monitor the business outlook" to decide on when to resume the benefit. GM has paid 20 cents into the plans for every dollar employees put in, after reducing the company amount from 50 cents in April.

Source: Bloomberg

phantom330phantom330 - 12/16/2005 1:36:09 PM
+1 Boost
that's gonna do quite a bit for employee morale. GM is on the way down the tubes, I don't think there is a comeback in sight.


lewissalemlewissalem - 12/16/2005 4:10:13 PM
+1 Boost
..Why should anybody feel guilty for them? This has been a long time coming. GM executives used to laugh at the Japanese car companies in the 80's. Now they benchmark Toyota. They have had two whole decades to fight the competition. And what do we get after 20 years? Another front wheel drive Cadillac with a 4-speed automatic (Cadillac DTS.)

This is the fault of GM management. Unless they are all removed, market share will continue to decline. They are already playing catch up, but they need to BEAT the competition. They need to spend major money NOW on R&D.

I believe it already may be too late. The Korean car companies are starting to build quality product, and soon, China will follow with low cost vehicles.


janos2769janos2769 - 12/17/2005 10:50:44 AM
+1 Boost
This is business, and GM knows nothing about it. They've been focusing on market share and profits when they should have focused on product and quality.

What they need to do is cut their work force conmeasurable with their real maintainable market share (half of what it is now), that is, cut into engineering and manufacturing while trimming down the number of brands. Close as many plants as needed to maintain the real market share. Pick 3 brands and kill the rest.

Do not cut into benefits offered. Treat your remaining employees with respect because you will depend on them to raise you back up. This is your most valuable resource!

Officers and Management must share in the reduced benefits. The Leaders in this company must tie their salaries and any bonuses to the performance of the company. No bonuses for failing! It's very easy to be mediocre when you know you'll be getting an executive bonus for your 'troubles' at the end of the year .

From the three brands, define the target market for each, economy, luxury, trucks or whatever you choose as long as it is defined. Market them in line with what you just defined. Fire all your stupid pricing gurus and don't ever spiral downward with excessive rebates.

Focus on product (long term) not shareholders (short term)!

I don't feel guilty by not supporting a mediocre corporation. I support American by choosing the best products and making companies such as GM improve in every way to match my needs. This will force GM to be the best. The problem is that management has sat in their fat asses for decades counting on the diminishing loyal (but not product conscious) customer base and their once fat market share. Guess what GM? You're loosing on both ends.

I don't see this company turning around until after it really restructures itself coming off bankrupcy. It needs to choose new leadership (a la Carlos Goshn at Nissan/Renault) and start from scratch.




lewissalemlewissalem - 12/19/2005 2:32:52 AM
+1 Boost
JD,

Oh we'll be amazed at what's to come. But it won't be from The Big 2 1/2. Nobody here is getting paid from import companies. We are just reporting on the facts so everybody knows that GM has made poor choices on it's cars during the past 20 years.

But they are forced to listen now. You will see a "Camero" concept car at the NAIAS in January that will most definately be produced. Not because they care, but because they have to care now.

Product is everything.


americanmuscleamericanmuscle - 12/22/2005 10:23:36 PM
+1 Boost
WHY DON'T THEY GIVE ALL THE BIG WIGS A CUT IN SALARY, THAT WOULD COVER IT. THOSE UNDER WORKED AND OVER PAID PEOPLE WHO PUT THINGS LIKE THE AZTEK ON THE ROAD!!!


americanmuscleamericanmuscle - 12/22/2005 10:23:36 PM
+1 Boost
WHY DON'T THEY GIVE ALL THE BIG WIGS A CUT IN SALARY, THAT WOULD COVER IT. THOSE UNDER WORKED AND OVER PAID PEOPLE WHO PUT THINGS LIKE THE AZTEK ON THE ROAD!!!


SteveSteve - 12/22/2005 11:37:52 PM
+1 Boost
I'm old enough to remember the 1970s when Japanese auto makers voluntarily raised prices rather than face stiff import tarriffs. The reason? The Japanese had some sort of unfair advantage, and the Americans needed time to catch up. Here we are, 30 years later, and it appears the Japanese have some sort of unfair advantage. As do the Germans, Swedes, and maybe even the Koreans.

As bright and resourceful as America is, maybe they just don't do cars as well as the other guys. You can't be good at everything, y'know.


SteveSteve - 12/22/2005 11:37:52 PM
+1 Boost
I'm old enough to remember the 1970s when Japanese auto makers voluntarily raised prices rather than face stiff import tarriffs. The reason? The Japanese had some sort of unfair advantage, and the Americans needed time to catch up. Here we are, 30 years later, and it appears the Japanese have some sort of unfair advantage. As do the Germans, Swedes, and maybe even the Koreans.

As bright and resourceful as America is, maybe they just don't do cars as well as the other guys. You can't be good at everything, y'know.


MorehouseMorehouse - 12/23/2005 1:58:26 AM
+1 Boost
It's time for unions to go the way of the dodo. Get rid of the slackers and treat each emnloyee as an individual and not as part of a larger, "saving grace" organization. That's job 1. (short term) Next, start to think more strategically and not rest on their laurels as they did with the SUV craze. (mid term) Then, get quality up like the Asians did. Remember when Hyundai was a piece of crap? How long did it take them to turn their QC around? It has not been that long ago, either. It can be done, and in a short period of time. (mid term) Finally (and these are not all their solutions, just the big ones), get their hierarchical and pay structures in order. There are far too many layers at this company (and most US companies) which cause strategic decisions to take much too long to implement.

Look at Cadillac. That division has begun to make some very attractive vehicles and is beginning to move the average age of their buyer down significantly. BUT IT TOOK TOO LONG! Chrysler was in the crapper a few years ago and now they have some of the most atractive vehicles out there. Did it take a new mindset (the Germans) to come in and make the change? Maybe GM needs more free thinkers and not just the "car guys" of old to make some change. Who knows? But the time has long since past for top to bottom sweeping changes to be made in our largest companies, especially at GM.


tarponspringstarponsprings - 12/23/2005 7:21:23 AM
+1 Boost
No executive is worth what most American corporations pay these morons. Give them all a base salary, then tie reasonable bonuses to bottom line performance. Also deep six golden parachutes. Many of these inept execs. get rewarded for failure. It would also help if car guys were running the show, instead of accountants. Make products that people actually want, and make them well. Finally, phase out legacy costs. Ponzi schemes are illegal in the U.S., but programs like Social Secutity and Union retirement agreements are not. The math simply does not work when the viability of a retirement program depends on the contributions of new workers to keep it solvent.


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