First, I would like to start off stating I'm surprise by the lack of ''the back of the envelope'' handwork put into by the media. The Detroit News instead of actually reviewing facts/timelines deicide to recycle previous information/ court material about UAW corruption and take GM Lawsuit (unfiltered)as gospel and spin it into a grossly presentation with lack of performing factual challenges (which so-called ''journalism'' is suppose to be about). Instead, it played up to the same old lip-service and typical ''GM cheerleaders'' that may have help cause the nearly demise of the United States Automotive industry by putting executives in an ''echo-bubble'' (a bubble that is less prestige than ''Wall Street'', ''Silicon Valley'') that prevents so many executives from seeing reality.
Lets do something that many simply have not been bother to do: actually post the lawsuit/complaint itself:http://int.nyt.com/data/documenthel...ysler/21db6535b3b6b6b083ad/optimized/full.pdf
As one would dig into this lawsuit, the shambles of misinformation, sloppy chronology, proven inaccurate details makes anybody with a brain wonder how could even such sad former giant of it former self away such trash to be greenlight by their President and CEO (Mark Reuss and Mary Barra).
Take the most elementary items--like the day you (as an Business) went Bankrupt--should be an unforgettable day of trauma ,and the lessons from such painful experience shouldn't be forget---well except GM that's who....
For some reason the omission of the U.S. Government, and the U.S. Auto Task Force runs up-Runs-down throughout GM lawsuit, but isn't surprising given how the Czar of the Auto Task Force (Steve Rattner) book (Overhaul) basically burns down GM's lawsuit.....more on that later to come.
Back to being off by a mile on different facts, even Sergio's bio history with Fiat/Fiat Chrysler get ****ed up by GM:
The other big element of GM's lawsuit is labor cost & terms where GM's lawyers attempt to tie labor agreement to bribery the way back to 2009, however the terms of the Bankruptcy Labor contract was put in place by Ron Bloom (former U.S. Marine) of the U.S. Government's Auto Task Force
So the labor disadvantage that GM is moaning about is structural one, where time will lessen the labor cost disadvantage driven by GM's older workers retiring and Chrysler's new hires aging (higher pay) . However the quickest & best way for GM to eliminate the labor disadvantage is by GM Management is to stop losing marketshare while start generating product that's in demand so GM will need more new hires as an overall part of their workforce.
Part two will come by next week ( why GM's lawyer's need to be disbarred from practicing law) so stay tune!
Happy new year!
Lets do something that many simply have not been bother to do: actually post the lawsuit/complaint itself:http://int.nyt.com/data/documenthel...ysler/21db6535b3b6b6b083ad/optimized/full.pdf
As one would dig into this lawsuit, the shambles of misinformation, sloppy chronology, proven inaccurate details makes anybody with a brain wonder how could even such sad former giant of it former self away such trash to be greenlight by their President and CEO (Mark Reuss and Mary Barra).
Take the most elementary items--like the day you (as an Business) went Bankrupt--should be an unforgettable day of trauma ,and the lessons from such painful experience shouldn't be forget---well except GM that's who....
GM filed bankruptcy on June 1, 2009 (a month later, or a 31 day gap between dates), not 60 days/two months later. Other holes in this lawsuit included
The largest shareholder of GM after Bankruptcy until the end of 2013 was the U.S. Government, not the UAW VEBA Retiree Healthcare Trust.
For some reason the omission of the U.S. Government, and the U.S. Auto Task Force runs up-Runs-down throughout GM lawsuit, but isn't surprising given how the Czar of the Auto Task Force (Steve Rattner) book (Overhaul) basically burns down GM's lawsuit.....more on that later to come.
Back to being off by a mile on different facts, even Sergio's bio history with Fiat/Fiat Chrysler get ****ed up by GM:
Sergio was never Chairman of Fiat, nor Fiat Chrysler.
Now back to the leaving out the U.S. Government/Task Force element of this GM lawsuit. GM goes on-and-on about Fiat's involvement & eventual purchase of all of Chrysler that leads to the Fiat and Chrysler merger in the Netherlands with the theme of Fiat putting no upfront money into Chrysler. But besides the Auto Task Force mandating Fiat running Chrysler (as part of any deal),the key reason of Fiat's ability under Sergio to not put any upfront capital into Chrysler is of all Companies GM:
Once again from Steve Rattner's book(car czar), GM had numerous chances to absorb Chrysler (or even various slim-down version's of Chrysler) during the Great Recession, all the way to Mid-April of 2009 as Sergio was a big pain in the Government/Cerberus/UAW asses. Yet GM whom now trying to play victim over the whole ordeal, failed to even step up when asked by the Auto Task Force to put counter pressure on Sergio. Ironically, because of GM refusal to truly consider Chrysler, Fiat could get into Mopar's doors with no upfront Cash and get the U.S. Government to agree to such terms especially because the U.S. Government ruled out (very early on in the early days of the Auto Task Force) Chrysler as an standalone & independent Automaker.
The other big element of GM's lawsuit is labor cost & terms where GM's lawyers attempt to tie labor agreement to bribery the way back to 2009, however the terms of the Bankruptcy Labor contract was put in place by Ron Bloom (former U.S. Marine) of the U.S. Government's Auto Task Force
As Rattner's book makes clear, the more marketshare/demand one (Automaker OEM )has, the more the automaker needs for new factory workers whom would of course be of lower pay. GM's so-called disadvantage is one of its own doing as GM Management have loss marketshare since Bankruptcy so despite a new U.S. SAAR rebound, GM hasn't had the same needed to hire new factor workers like Chrysler has. In addition to the rebound of Chrysler's marketshare with the added rebound of U.S. SAAR, Chrysler workforce was gutted under Bob Nardelli and needed to hire just to put the plants back in motion.
So the labor disadvantage that GM is moaning about is structural one, where time will lessen the labor cost disadvantage driven by GM's older workers retiring and Chrysler's new hires aging (higher pay) . However the quickest & best way for GM to eliminate the labor disadvantage is by GM Management is to stop losing marketshare while start generating product that's in demand so GM will need more new hires as an overall part of their workforce.
Part two will come by next week ( why GM's lawyer's need to be disbarred from practicing law) so stay tune!
Happy new year!
Last edited:
