Jim Cramer: GM is not a car company, it's a JOBS PROGRAM

[robertlane]

Jim Cramer: GM is not a car company, it's a JOBS PROGRAM. . .when the economy improves, GM will die off.

 

CLICK HERE TO WATCH THE VIDEO.

Edited June 4, 2009 by robertlane

[foxrun]

Jim Cramer: GM is not a car company, it's a JOBS PROGRAM. . .when the economy improves, GM will die off.

 

CLICK HERE TO WATCH THE VIDEO.

 

Isn't Jim the one that preached the superiority if the free market economy and how bad socialism was (is). I would love to ask him where capitalism would be today without the loving care of some socialism, could a man ever be so wrong. After the interview on the Daily Show how does he still show his face.

So to answer the question, is he right about GM, I want to know if he can ever be right about anything again.

[jpd80]

Isn't Jim the one that preached the superiority if the free market economy and how bad socialism was (is). I would love to ask him where capitalism would be today without the loving care of some socialism, could a man ever be so wrong. After the interview on the Daily Show how does he still show his face.

So to answer the question, is he right about GM, I want to know if he can ever be right about anything again.

I liked what he said about Ford.

 

The rest was just GM is a $50 billion job creation scheme over and over, Gobelling at its best.

[RangerM]

So to answer the question, is he right about GM, I want to know if he can ever be right about anything again.

Even a broken clock can be right twice a day.

Edited June 4, 2009 by RangerM

[Ford Jellymoulds]

Thanks for posting the Video Robert gotta say l missed that one.

 

General Motors were a great company in the past they made some great products they use to make the products folk wanted to buy.

Gotta say the one thing l wanted to hear come from Fritz Henderson lips when he gave the spill on General Motors future was that GM were now going to change course as SAP would start to focus on changing the "Product" that had led GM into a massive failure in the first place and start making cars folk wanted to buy.

 

Instead Fritz spent most of the time telling the press how wonderful his new all unimproved General Motors line-up is that help accumulate $192 billion of debt at General Motors, he gave the same sort of spill British Leyland CEO's of the past used to give almost in verbatim word for word, that makes me tend to agree with Jim Cramer.

 

General Motors have been given a huge $50 Billion olive branch from Obama and the American taxpayer, and l am sure Bush would have done the same thing. General Motors have been given a golden opportunity to change and start building cars folk want to buy.

 

Gotta say l would like to see them make a big success of the Volt, a lot of folk seem to think the whole of future of General Motors hangs on whether GM Volt is a success or failure. Sorry to say folk are cash stapped at the moment and when given a choice of an expensive Volt or a Prius costing half the price, not unless GM are prepared revert from being the new improved GM to the old General Motors we will sell everything at huge loss just like did with multi billion $$$ loser EV-1 program. Prius will keep the lions share of the market 8,000-10,000 units they have sold in the last few months. Volt will not make billions it will more than likely be an epic fail and lose billions invested & bribes to buy based on the very low volumes of hybrid sales. Jim Cramer is right again.

 

General Motors cars in Europe have failed bigtime GM no longer own them, and GM US cars come from very much the same mould they are very boring dull bland, this is where the biggest change is needed in the future. Fritz was very happy to tell the press how good the $192 debt making cars are when he should have been saying we will change the whole car range and make it a product folk will want to buy for a change SAP making them more exciting for a change, because if all you are building is boring and all you can upgrade to look forward to in the future is boring whats the point of buying a new car you might as well hang onto the boring GM car you already have, and thats the problem today nobody wants to buy new they are all holding on to the boring they have already got. Jim Crammer is right again General Motors no longer build in Europe and their product range has been cut in half in the US.

 

General Motors good bits are their Chinese operations and their classic Silverado pick-up truck these vehicles very much a big part of their future. If only GM could put some of the classic charm and magic of a Silverado into its cars they would be a big billion $$$ hit for GM they would be a product folk would buy on mass without $192 billion loss making debt creating bribes. GM US have shrunk to four brands but they are four of the best selling brands the four they got rid of are low volume. If GM change their cars GM will prove Jim Cramer wrong but if they don't all you will be left with will be the Silverado and a Chinese based General Motors car maker in the long term as GM get smaller and smaller. A cah rich Toyota will try to focus and do a Walmart on the Silverado by undercutting it a weakened GM that have to make a profit but they will fail because the classic stylin of Silverado make it bomb-proof. So Jim Cramer is wrong here.

 

Gotta say l think Fritz is a sunshine news yes man just like Wagoner was, he comes on TV telling folk we will be building a new small car at one plant but failed to mention the 14 he will be shutting down in the USA. Expect much the same from sunshine Fritz in the future nothing every rains in his world, it does in Mulally's world and he fixes the leaks.

 

One good thing Jim Cramer mentioned in the video was how Alan Mulally and Ford had changed were making the vehicles wanted to buy, from the Fiesta to F-Series Ford have got sales winner written all over them.

 

Put me down for a +1 for Jim Cramer but l think it will be more of long term slow decline, Fritz has not mentioned anything about changing General Motor products that have created an epic fail for them, Cramer is right Robert as we don't have General Motors car we can buy in Europe now.

Edited June 4, 2009 by Ford Jellymoulds

[mustangman9494]

why would anybody buy a gm car in the us???. RIP! gone like the dodo bird who buried it,s head in the sand.

[MGolden]

I would love to ask him where capitalism would be today without the loving care of some socialism,

 

Such as?

[NickF1011]

why would anybody buy a gm car in the us???. RIP! gone like the dodo bird who buried it,s head in the sand.

 

GM went out of business? Really?

[ANTAUS]

Even in city and county government, now that appraisals and revenues are dropping, many of the local cities are running nothing but a jobs program. I keep asking about capital improvement projects, where are we getting the money from, where are we in relation to specific projects, etc and everything has been pushed back a year or 2 because the funds aren't there. So I've asked, "since we have no projects for the next 2-3 years, why do we have these "special projects" positions filled...? Are we running a payroll company ? I mean, why pay $70-110K for each of these positions, if the people dont have any projects to work on, because we dont have the money for them? Then I get "the look"...

[97svtgoin05gt]

I have to say, even though I like Kramer he did have some egg on his face a short while ago, no doubt. His assessment of GM however at this stage if you think about it isn't far off from the truth. Its no secret to anyone here that you can no longer sell vehicles profitably paying the union wages and benefits that historically have been given the union folks. It just economically doesn't add up. The union people are making way more money than most of the car buying public. How can you continue to pay $72,000 union assemblers when the rest of the country are making $45-$60k and trying to buy these cars? The price of the cars would START at $45,000 and go up from there. Net/net you'd sell nothing but bicycles and motorcycles. The world still needs a heathly selection of sub $30k fuel efficient, reliable attractive vehicles. GM has some sub $30k vehicles but they're not attractive nor are the profitable. GM makes money on 45K suburbans and 60K Caddillacs neither of which are very fuel efficient. Could they build them? Yes. Do they build them? No. Will they figure out how to build them, do it quickly with quality and at a profit before they die? Its yet to be seen. My prediction is no. After the thrashing machine is done running up and down the isles at GM things will be in such a disarray, I don't feel anyone left will have the drive or enthusiasm necessary to get the job done.

Edited June 4, 2009 by 97svtgoin05gt

[NickF1011]

I have to say, even though I like Kramer he did have some egg on his face a short while ago, no doubt. His assessment of GM however at this stage if you think about it isn't far off from the truth. Its no secret to anyone here that you can no longer sell vehicles profitably paying the union wages and benefits that historically have been given the union folks. It just economically doesn't add up. The union people are making way more money than most of the car buying public. How can you continue to pay $72,000 union assemblers when the rest of the country are making $45-$60k and trying to buy these cars? The price of the cars would START at $45,000 and go up from there. Net/net you'd sell nothing but bicycles and motorcycles. The world still needs a heathly selection of sub $30k fuel efficient, reliable attractive vehicles. GM has some sub $30k vehicles but they're not attractive nor are the profitable. GM makes money on 45K suburbans and 60K Caddillacs neither of which are very fuel efficient. Could they build them? Yes. Do they build them? No. Will they figure out how to build them, do it quickly with quality and at a profit before they die? Its yet to be seen. My prediction is no. After the thrashing machine is done running up and down the isles at GM things will be in such a disarray, I don't feel anyone left will have the drive or enthusiasm necessary to get the job done.

 

I don't think there was EVER a time when the average UAW worker was making anywhere close to $72,000 a year.

[foxrun]

I have to say, even though I like Kramer he did have some egg on his face a short while ago, no doubt. His assessment of GM however at this stage if you think about it isn't far off from the truth. Its no secret to anyone here that you can no longer sell vehicles profitably paying the union wages and benefits that historically have been given the union folks. It just economically doesn't add up. The union people are making way more money than most of the car buying public. How can you continue to pay $72,000 union assemblers when the rest of the country are making $45-$60k and trying to buy these cars? The price of the cars would START at $45,000 and go up from there. Net/net you'd sell nothing but bicycles and motorcycles. The world still needs a heathly selection of sub $30k fuel efficient, reliable attractive vehicles. GM has some sub $30k vehicles but they're not attractive nor are the profitable. GM makes money on 45K suburbans and 60K Caddillacs neither of which are very fuel efficient. Could they build them? Yes. Do they build them? No. Will they figure out how to build them, do it quickly with quality and at a profit before they die? Its yet to be seen. My prediction is no. After the thrashing machine is done running up and down the isles at GM things will be in such a disarray, I don't feel anyone left will have the drive or enthusiasm necessary to get the job done.

 

Did you see the Daily interview? Stewart called him a liar and Cramer admited it only after being shown proof from some of his earlier work. What Cramer said in a nutshell was that his job was to mislead so he could take advantage of the morons that listened to him.

[snooter]

first thing i am doing when socialism arrives is going after all the stuff others have..hey its only my right under socialism..its just not fair you have a built in swimming pool and i dont..yep...i'm going to demand a new swimming pool and if you have one its mine..its the right thing to do with all the great benefits socialism has to offer...far as GM who cares..ill never buy there trash product...honda cars-ford trucks...

[RangerM]

first thing i am doing when socialism arrives is going after all the stuff others have..hey its only my right under socialism..its just not fair you have a built in swimming pool and i dont..yep...i'm going to demand a new swimming pool and if you have one its mine..its the right thing to do with all the great benefits socialism has to offer

Your post as a picture.

Edited June 5, 2009 by RangerM

[foxrun]

first thing i am doing when socialism arrives is going after all the stuff others have..hey its only my right under socialism..its just not fair you have a built in swimming pool and i dont..yep...i'm going to demand a new swimming pool and if you have one its mine..its the right thing to do with all the great benefits socialism has to offer...far as GM who cares..ill never buy there trash product...honda cars-ford trucks...

 

When socialism arrives?

 

$3,000,000,000,000 to the banks alone what do you mean when.

[simplesituations]

I don't think there was EVER a time when the average UAW worker was making anywhere close to $72,000 a year.

Exactly the average wage is $52,000, where he got his info? I have no idea.

[Cocheese]

Its no secret to anyone here that you can no longer sell vehicles profitably paying the union wages and benefits that historically have been given the union folks. It just economically doesn't add up. The union people are making way more money than most of the car buying public. How can you continue to pay $72,000 union assemblers when the rest of the country are making $45-$60k and trying to buy these cars? The price of the cars would START at $45,000 and go up from there.

 

Dear Lord you are ignorant and completely wrong.

 

First off, union workers make no where close to $72,000 a year.

 

But just to prove employee's pay has nothing to do with what GM is going through, let's do some simple math.

 

Take the amount of money you think UAW workers make per hour (you'll be higher then what it is, but put that number in anyway). Then multiply their hourly wage by the amount of people employed at an assembly plant (2,400 is about average for a 2 shift facility). Then multiply that by an 8 hour shift. Take that number and divide it by the amount of vehicles built in a day (roughly 1,000 cars per day at a 2 shift plant). That number you see on your calculator price for labour on a single vehicle.

 

($72,000 divided by 40 weeks (about average if not low for the amount of production time), divided by 40 hours a week equals $45/hr. $45/hr x 2,400 employees x 8 hour shift / 1000 cars per day = $864. It is less then $900 in labour cost to assemble a car. Even if you double the hourly wage, you can see how misguided you truly are)

 

 

Opps, looks like your "START at $45,000 and go up from there" theory was just blown out of the water.

 

Go enjoy your import you tool.

[Hydro]

Did you see the Daily interview? Stewart called him a liar and Cramer admited it only after being shown proof from some of his earlier work. What Cramer said in a nutshell was that his job was to mislead so he could take advantage of the morons that listened to him.

Cramer, what a knob . Thanks foxrun for bringing this up. I'll try to see if Comedy Central is still running those interviews unedited. Stewart slammed his ass so bad I'm surprised Cramer even has a show left. It's funny, it all started when one of his NBC boys ran his mouth about how stupid the general public was about getting swindeled into junk mortages.

[J-150]

It just economically doesn't add up. The union people are making way more money than most of the car buying public. How can you continue to pay $72,000 union assemblers when the rest of the country are making $45-$60k and trying to buy these cars?

 

 

 

considering, employees, family and retirees were and are the biggest group of GM vehicle buyers, yeah it does add up.

 

 

don't ask me for the link because I can't remember where I read it. But about a year or 2 ago, I did read that a full 1/3 of GM sales were to employees/retirees/family and 1/3 were fleet. Leaving only 1/3 to the general public.

 

not a bad idea, sell 2/3 of your vehicles at insider discounted prices and the remaining 1/3 with excessive cash on the hood to move them.

[97svtgoin05gt]

My $72,000 figure is based on a fully burden employee. This includes benefits etc. I may be slightly high but that is generally a decent number when you consider it as a full deal.

[97svtgoin05gt]

Dear Lord you are ignorant and completely wrong.

 

First off, union workers make no where close to $72,000 a year.

 

But just to prove employee's pay has nothing to do with what GM is going through, let's do some simple math.

 

Take the amount of money you think UAW workers make per hour (you'll be higher then what it is, but put that number in anyway). Then multiply their hourly wage by the amount of people employed at an assembly plant (2,400 is about average for a 2 shift facility). Then multiply that by an 8 hour shift. Take that number and divide it by the amount of vehicles built in a day (roughly 1,000 cars per day at a 2 shift plant). That number you see on your calculator price for labour on a single vehicle.

 

($72,000 divided by 40 weeks (about average if not low for the amount of production time), divided by 40 hours a week equals $45/hr. $45/hr x 2,400 employees x 8 hour shift / 1000 cars per day = $864. It is less then $900 in labour cost to assemble a car. Even if you double the hourly wage, you can see how misguided you truly are)

 

 

Opps, looks like your "START at $45,000 and go up from there" theory was just blown out of the water.

 

Go enjoy your import you tool.

 

First off, I don't buy imports YOU TOOL. Secondly, your statement that employee wages have NOTHING TO DO WITH WHERE GM IS TODAY cannot be serious. So you seriously feel that employee compensation including their actual pay, their benefits, their pension plans etc have nothing to do with GMs situation?

 

Ha..okay...

[630land]

Boils down to plutocracy. NYC rich fat cars simply hate anyone in lower social classes and think that workers should get paid pennies. So, work is sent to 'socialist' and communist countries so Muffy can get her pedicure and all.

[J-150]

My $72,000 figure is based on a fully burden employee. This includes benefits etc. I may be slightly high but that is generally a decent number when you consider it as a full deal.

 

 

so you quote all of your employment costs when someone asks how much YOU make?

 

Why is it that only UAW have their wages reported as cost to employer and not the actual hourly rate?

 

 

When they say the President makes $400k per year, does that include the residence, the vacation home, the airplane, the limo etc?

[J-150]

So you seriously feel that employee compensation including their actual pay, their benefits, their pension plans etc have nothing to do with GMs situation?

 

 

 

sure it does, but not to the extent people claim it to be. It is but one, single factor out of many.

 

How is it that the amount that Toyota makes on each car is greater than the difference between a UAW employee cost and Toyota non-union employee cost? The studies have been done and are all over the net for anyone interested in researching.

[Cocheese]

First off, I don't buy imports YOU TOOL. Secondly, your statement that employee wages have NOTHING TO DO WITH WHERE GM IS TODAY cannot be serious. So you seriously feel that employee compensation including their actual pay, their benefits, their pension plans etc have nothing to do with GMs situation?

 

Ha..okay...

 

How can they not be serious? I've given you the a per vehicle explanation on how much UAW labor cost per vehicle, that 100% contradicts what you have claimed, and you have provided nothing to refute it. Even at the astronomical figure of $72,000 per employee, it still equals less then $1000 per vehicle. You are wrong. Except it. Your theory that employee pay is the problem does not hold weight, especially when you consider how much the Big 3 have made off "big ticket items".

 

Keep buying into the agenda. The math doesn't work out for you and proves you wrong, but go ahead and embarrass yourself with it anyway.

 

You tool