I keep hearing Fast Money and its rants! They keep saying, "oh the automotive industry is not doing any changes"
Well I am going to keep the FastMoney crew honest!
GM, Ford Motor Co. and Chrysler have a combined $90.5 billion in unfunded retiree healthcare obligations on their books. GM reportedly will be able to shift about $36 billion of its $50 billion in retiree healthcare obligations into the trust fund.
The proposed contract also creates a two-tier wage scale, which would establish a lower pay scale for new workers hired into non-manufacturing jobs, such as janitorial and landscaping positions.
General Motors is starting to reap the benefits of a massive cost-cutting programme that is eliminating 34,000 jobs and shuttering factories, according to its latest quarterly figures.
The bulk of the financial improvement was in its loss-making US division, but GM swung back into the black in Europe, where its net income of $217m, compared with a net loss of $39m in the same quarter last year. The fastest growth was prompted by a marketing push in emerging countries. Its Latin America, Africa and Middle East unit reported its best result in a decade: net income of $213m, up 53 per cent.
However, even as GM shares jumped 3 per cent on the news, Rick Wagoner, the company’s chief executive, struck a downbeat note. "It’s true that our North America team has made huge improvements, and we appreciate everyone’s hard work," he said. "But our current earnings clearly demonstrate we’ve got more to do."
Here is question, how would these Fast Money people react if it was them?
Come on Fast Money, address this question: how would you be if tomorrow you were out of a job? Imagine if tomorrow NOBODY wanted to listen to your ranting? Imagine tomorrow if you had NO MONEY! Imagine tomorrow if you had no money a family to support? Where would you be and what would you want?
I am not a union person, actually dislike unions. BUT I have sympathy for the automotive industry!