The current finincial mess GM finds itself in is a reflection of the currrent looming financial disaster of the United States. 

When you "guarrentee" pensions out of profits instead of a finite fund, you will reach an unsustainable level at some point.  Think Social Security.

Jeff-In light of GM's performance, both in the marketplace and in the stock market, questioning the company's long-term survival seems perfectly legitimate.

Duh.

Of course GM will go out of business, or need to at least declare bankruptcy and reorganize. They committed suicide years ago with their deals with the UAW.

How many years in a row can you lose billions of dollars and stay in business? They have lost $50,000,000,000 over the past three years. Yes, most of that was an accounting anomaly.

This also illustrates the folly of McCain's battery initiative. Like something out of Austin Powers, he has offered 300 million dollars! to whoever can invent a better battery. I guess he doesn't belive the idea is worth 300 Million Dollars in the free market. You would only need to sell 100,000 of these cars to get to 300 million dollars. I guess GM is going to get right on that, after all, 300 Million Dollars would cover their losses for about ONE WEEK.

...that's for sure.

Exxon is making record profits.  They pay their CEO and execs handsomely.  Understandably.  Why then, does GM pay its CEO Waggoner $20 million when they ARE LOSING AS MUCH AS EXXON IS MAKING a year?

Union wages and benefits are NOT what they used to be.  That's for damned sure.  And, last time anybody checked, GM is making approx 50% of their product line in Canada or Korea or overseas, period.  Those workers aren't making $27 per.  (Neither are the VAST MAJORITY of UAW workers in America).

Now, Mullaly @ Ford is making TENS of MILLIONS of DOLLARS per year.  Ford has yet to turn ANYTHING remotely resembling an annual profit with him at the helm.  NOT EVEN CLOSE!  Why do (some) conservatives advocate pay for performance but turn a blind eye to cretins like these?  The Japanese (actually most Hondas or Toyotas are more American than any Ford) managers make MILLION$ less than their counterparts.  And have several fewer levels of management.

Bottom line:  Last time anybody checked, it is THE PRODUCT that people buy.  NOT the management.  The DESIGN and BUILD of ANY product is far more important than the management.  It is for THAT reason I won't consider a GM or Ford product for a daily driver.  And the reason why the DESIGN and BUILD of their products has failed is BECAUSE OF THEIR MANAGEMENT. 

I recall not that long ago GM had 58% of the car market. Now it's 22% and dropping. There was even talk about breaking it up because of it's dominance.
I understand the comments about unions and their roll in GM's problems. However to me the bigger issue is simply product. They've lost market share not due to unions but products. I haven't owned a GM prodcut in years. The last one I had gave me troubles so it got traded. The lost market share also comes home to roost in image or peoples feelings about their products. Look at Harley Davidson. They do not make the most reliable bike or most advanced but they have an image that other companies would kill to get. People keep buying them to buy into that image.
I hope GM turns it around, but it will have to be with product. No more Aztec's, etc.

When my husband left the Navy after 26 years of service, he went to work as an engineering supervisor for GM Truck and Bus, the only division that was steadily profitable. At that time, early '90s, we were told that one in five people owed their living in some way to General Motors. This included electronics companies, carpet and paint companies, plastics companies, sheet metal companies, steel companies, financial companies, and on and on. GM is a whole lot more than that Chevy driving down the street. They were leaders in satelitte development and a host of other very high tech tenchologies. Losing GM to an out of business or bankruptcy sale would be an economic disaster. But, to blame them and not the Unions is the worst stupidity. Being forced to pay the guy who drives the vehicle off the line and out to the parking lot $18 an hour plus all the other Union perks of overtime, healthcare, vacation time, etc. is an example. My husband was a salaried employee with a fixed salary as pay. He supervised a department of 140 employess of what is called "skilled trades," the electicians, welders, pipe fitters, carpenters, etc. Every one of them made more money than he did because of the Union benefits they got that he didn't because of his management status. Even their stock option plan was better, getting 2 to 1, whereas we got 1/2 to 2.

Everything will be okay in November.....?

Here's one article that shows what I am talking about:

http://www.businessandmedia.org/news/2005/news20051123.asp

And another:

http://www.businessa...

Notice this is from three years ago, see how the media does not being it up again until this horrible economy that will destroy America appears.

Notice the source of the articles, a source I (and I assume most of you) find very trustworthy. GM's problems are not new and they will not tank the economy. Funny how companies in trouble single economic collopase while business who are thriving are not seen as evidence of economic golden ages.

Can we, the TV viewing American public, EVER expect to see less-constant commercials from GM's "Ditech" financial unit? And on the subject of Ditech, how come GM management thinks turning variable rate home loans taken out by mentally challenged borrowers into fixed rate home loans for those same mentally challenged borrowers is a good business idea for GM shareholders (who, at this point, might also qualify as "mentally challenged," along with GM's historically Dilbertesque management)??
JMR

The tax & spend drug war looks racist in the real world.