quote:
Originally posted by Constructive Feedback:
The dividend is NOT the problem.
GM prior to these cuts is a company that is structured to produce 3.8 million cars but they were only selling 3.2 million. This restructuring is a long time coming.
I'm going to try to be nice. It will be hard, but here goes.
You are so brainless, CF, that I can no longer take you seriously. Everything you say is either factually incorrect, historically inaccurate, economic nonsense, or simplistic garbage.
I thought you said you are a college graduate. How can that be? You can't even write a clear, coherent, unified paragraph expressing a single unit of thought.
You're intellectually lazy and dishonest. You don't even bother to check the validity of what you post. And if someone contradicts what you say with accurate information you either ignore them, roll out something completely unrelated, or launch one of your extraneous rants.
Instead of responding to the information that Isome posts, you attack her personally. You don't like the fact that she is SO much more knowledgeable than you are, so you write condescending, patronizing, and insulting replies to her posts that are intended to belittle her. You are such a classic asshole.
At least five people have debunked your "consumer conspiracy theory", your despicable use and reference to the oil for food program, your "Asians do it, we can too" theory, your "wonders of corporate America" crap, your "capital accumulation within our community" bullshit and your "let's generate our own jobs" nonsense. But the next time I sign on, I'm assured of seeing it all again.
Added to this, people have repeatedly asked you, "Okay, how do we do what you suggest?" Silence. "How do we generate more jobs in the Black community?" Silence. "How do we keep African American families together?" Silence. "How can someone live without being a consumer?" Silence.
And lastly, what really sucks is your hypocrisy. You never miss a chance to express your disingenuous concern for Iraqi children who have died but you completely support the illegal forty-five year embargo of Cuba that has caused so much death and deprivation. You don't give a damn about the children of Iraq unless it's to score points in an argument.
Your simple explanation of GM's problems isn't worth the coded zeros and ones that display it.
First, I thought you said you knew something about economics. You should have learned in microeconomics 101 about economies of scale. But they're not boundless. There's an optimum point beyond which size begins to cause losses and major problems. GM is beyond that point.
Second, legacy costs! GM is so large that it has a huge number of retirees who draw pensions. Add to this medical costs for aging retirees that are above average because medical costs for the elderly are high. As a bonus, add spiraling healthcare costs for a large workforce. Healthcare costs alone for GM last year were over $5B.
Third, $276B dollars of debt! The yearly interest for debt maintenance on this amount is huge.
Forth, dealer incentive programs! Starting after 9/11 they have continued almost to this day. These programs cut deep into profits.
Fifth, their cars are too expensive and the quality doesn't match the quality of Japanese and other foreign cars! American consumers are buying more Hondas, Toyotas, etc. and GM is losing market share.
Sixth, their one profitable line, trucks and SUVs are outdated and newer models should have been marketed two years ago! Sales have slipped.
Seventh, buying a 20% share of Fiat for $2.4B. LOSER!
Eighth, the Zeta "uniform platform program" for a new generation of rear-wheel drive cars! It hasn't gone well. They've already ditched the American version, for now.
Ninth, poor car design! They haven't been listening to what consumers want.
Lastly, and most important, terrible, awful, greedy, shitty management. Executives pay themselves huge salaries and bonuses, way beyond what foreign car manufacturers executives make. A Japanese auto executive makes 17 times what an assembly line worker makes. An American auto executive makes 400 times that of an assembly worker. Add to this the terrible marketing and production decisions that management has made and you have the world's largest auto maker on the verge of bankruptcy.
Oh, and the link you posted about GM expansion? It's well over a year old and in view of GM's current problems, not relevant.