Corvette C-7: RIP

[Stuart F.]

Though not specifically stated in yesterdays Press Release form GM, capital spending plan reductions: "is related to the delay of the next generation large pickup and SUV program, as well as V-8 engine development and associated capacity." This pretty well tells the story. On a side note, included in the plan to " Bolster Liquidity" is an item that affects us GM retirees over 65: "health care coverage for U.S. salaried retirees over 65 will be eliminated, effective January 1, 2009." So much for loyalty and longevity.

Stu Fox

[David D.]

Re: Corvette C-7: RIP

item that affects us GM retirees over 65: "health care coverage for U.S. salaried retirees over 65 will be eliminated, effective January 1, 2009." So much for loyalty and longevity.

Stu,
Well that isn't good news....My dad worked for a GM division for 36 years. He passed away 5 years ago, but it sounds like it's gonna affect my step-mom. Sorry to hear that, for all of you. Especially when it's the time of your life when needed the most.
I have 30+ years with a large computer company and I'm expecting a similar thing to happen to us (as well as all others) in the near future. I hear what your saying about Loyalty.
David

[Marc R.]

Re: Corvette C-7: RIP

I live in a retirement community and I know a lot of retired GM folks. That's going to be a real hit to them, and what about the ones who are in poor health? That's just not right.

[John H.]

Re: Corvette C-7: RIP

Chrysler did the same thing two years ago (eliminating company-sponsored health care for over-65 salaried retirees), but they gave us a $1700.00 annual allowance in its place; in my case, that exactly covers the premium I pay for the Blue Cross Advantage program I bought which also covers Medicare Part D prescription drugs. My wife is still covered by the same company-sponsored health care program I had before I turned 65 until she turns 65, then I'll have to buy coverage for her too.

The GM announcement said something about an increase in pension checks to help offset the elimination of health care, but didn't give any details.

[Stuart F.]

Re: Corvette C-7: RIP

John;

That's correct; Xtra $300./mo on the pension to "help" with the costs, and in our case that has to be for both the wife and I. We're out shopping already, but I'm sure we'll get lots of mail full of offers. I imagine you did as well. It was expected, just didn't know when. I'm grateful to the Generous Mother for all the advantages and benefits I have enjoyed over the years.

What do you think of the suspension of V8 engine development? Do you think the "C-7" will be threatened? and how about RO-7 NASCAR engine development? do they just cede that to Toyota w/o a fight? Been looking like they did that already, even with Tony Stewart's plan to come back next year.

Stu Fox

[Clem Z.]

Re: Corvette C-7: RIP

John;

That's correct; Xtra $300./mo on the pension to "help" with the costs, and in our case that has to be for both the wife and I. We're out shopping already, but I'm sure we'll get lots of mail full of offers. I imagine you did as well. It was expected, just didn't know when. I'm grateful to the Generous Mother for all the advantages and benefits I have enjoyed over the years.

What do you think of the suspension of V8 engine development? Do you think the "C-7" will be threatened? and how about RO-7 NASCAR engine development? do they just cede that to Toyota w/o a fight? Been looking like they did that already, even with Tony Stewart's plan to come back next year.

Stu Fox

tony stewart talk about bad timing!

[Ken A.]

Re: Corvette C-7: RIP

Ten years from now GM's Smith,Waggoner, et al will be a business school chapter on how to mismanage a company with a 50% market share to bankruptcy in 25 years or less. Anyone who is counting on GM, or the auto industry in general, to provide benefits for the rest of their life, should plan on a very short life. Someday people will look at us old f@rts & their cars and think we were crazy. Maybe I am.

[Clem Z.]

Re: Corvette C-7: RIP

people keep saying GM should have seen the $4 gasoline coming and built small fuel efficient cheap cars but GM can not survive on selling $15K list price cars because there is not enough profit to pay their pensions and health care plans and still do research. people in europe used to paying high prices for small fuel efficient cars but it will take years for that to happen here. people are already crying that the chevy volt will cost $40K

[Stuart F.]

Re: Corvette C-7: RIP

Along with the "L" words of my first post; Loyalty and Longevity, I should add "Legacy". I'm one of those which presents GM with a distinct cost disadvantage to the likes of Honda, Nissan and Toyota. They build their rice burners in non-union shops in the boonies where the're no taxes, and provide little if any benefits - specially retirements. It's a formula that any CEO of GM, regardless of his last name, can't possibly compete against. Well, at least they are doing something about me - one of their old Legacy drains. Can any of you lend me a few bucks for my next batch of heart medicine? Can't depend on my 63 to defribulate me all the time, though it does a pretty good job (to the red line!!!).

Stu Fox

[Rick S.]

Re: Corvette C-7: RIP

Being a retired goverment employee I will go out on a limb and say "we have to die sometime".

Rick

P.S. Didn't earn the big bucks but the benefits have been great.

[Chuck S.]

Re: Corvette C-7: RIP

people keep saying GM should have seen the $4 gasoline coming and built small fuel efficient cheap cars but GM can not survive on selling $15K list price cars because there is not enough profit to pay their pensions and health care plans and still do research. people in europe used to paying high prices for small fuel efficient cars but it will take years for that to happen here. people are already crying that the chevy volt will cost $40K

Our government is responsible for this debacle. I suppose there has been too many special interest groups involved in oil for our government to strategically plan for alternative energy sources...now all of us are takin' an *** whuppin' as a result. Don't worry; we'll get used to it.

It was clear from the oil crisis of the 70s that our nation's security was vulnerable in the hands of a cartel. But, instead of leadership toward energy independence, we got the 55 mph speed limit...what morons. Todays version of the 55 mph speed limit is a gas tax holiday...heaven help us.

The French saw their vulnerability in the 70s, and began developing nuclear power as an alternative...now they are 80 percent energy independent. We're right back where we were in 1973, only worse...domestic reserves are just about used up and those clowns up on The Hill continue to resist domestic production increases.

GM should have seen this scenario as a possibility and had a game plan ready.There were people at the top that were get getting paid plenty to know what direction the corporation should take...instead they majored in SUVs and trucks almost exclusively.

What the government should do now is stabilize the fuel situation by locking the price of gasoline in at $4.00+ using taxes. In Europe, half the price of a gallon of gasoline (~$8.00?) is taxes. For every penny the price of gasoline goes down, the government should increase the tax on a gallon one penny. Now that's an idea morons in Congress should love. What if the gasoline price goes up?...Leave the tax unchanged; it's the economic impact of $4.00/gallon that we need to galvanize the development of alternative sources.

Don't worry, oil will get cheap fast once the speculators and OPEC figure out they are killing "Demand", the golden goose. It's down about $10/barrel the last two days on fears the economy is going into the toilet because of their speculation, and a government report indicating the US is awash in crude supplies.

The proceeds of the tax would be legislatively REQUIRED to be put into a trust fund for TVA-like nuclear projects nationwide based on energy demand...the faster they cut the price, the less of it we need. Let us resolve NOT to be jerked around again.

[Edward S.]

Re: Corvette C-7: RIP

Stu,

Sorry to hear about your medical - the Company I retired from 4 years ago had already dropped medical for retired people. When they tried to drop my pay by 30% due to the loss of some major clients, my daughters talked me into retirement at 64. It's true I hated buying a Cobra plan for 9 months - but the retirement was one of the best things I ever did. As I say now you can't put a price on peace of mind - however I am still looking for that rich woman to take me away from all of this! Wishing you and your's nothing but the very best.

[Clem Z.]

Re: Corvette C-7: RIP

Being a retired goverment employee I will go out on a limb and say "we have to die sometime".

Rick

P.S. Didn't earn the big bucks but the benefits have been great.

working for the govt can not be beat because if they start running a little short to pay workers they just raise everybody's taxes.

[Timothy B.]

Re: Corvette C-7: RIP

Everybody has great points. I blame our Congress, THAT BUNCH NEEDS TO BE FIRED but no one is doing anything about it. None of them stand for anything and you can bet they saw this comming for 30 years!! They should give the oil and auto manufactures the tax incentivies to develope technoligy to get us away from mid east dependence oil. I believe the big companies can do it! The solution is not in goverment it's in private business but if there are no incentivies to take risk then why bother.

Do you remember about two or three years ago when the president came out and said fannie and freddy were in trouble because of bad loans and everyone tryed to make the administration look like they were anti american. Now we pay the piper, stock market no good, no interest in banks, dollar droping in value, property values down, every business that can is trying to move out to stay competive, illegals running around in this country destroying middle class and no one is doing anything about it, and remember the goverment does not count food and energy in it's inflation formula.

Now they want to take second amendment rights away, tax the oil companies and give that away as another goverment subsidy. The solutions are black and white but you have got to clean house from the top, I hope it does not take another revolution to do it but we may be too far gone. SORRY FOR THE -----

I had to edit, I guess my point is that all these problems run together and they point one to place (OUR POLICY MAKERS) AND THEY HAVE MADE A MESS OUT OF OUR COUNTRY!! Don't look for anything to get better soon.

[Mark K.]

Re: Corvette C-7: RIP

people keep saying GM should have seen the $4 gasoline coming and built small fuel efficient cheap cars but GM can not survive on selling $15K list price cars because there is not enough profit to pay their pensions and health care plans and still do research. people in europe used to paying high prices for small fuel efficient cars but it will take years for that to happen here. people are already crying that the chevy volt will cost $40K

Clem, The big-3 did see higher fuel prices on the horizon, they just couldn't tell how far off that horizon was, so they chose to ignore it and contiune building large vehicles. I wrote some strategy papers on this very topic in the late 90s and the conclusions (reviewed at the highest levels) were not deemed to be a near term problem.

The mistake I think you are making is the same one many Americans make with respect to small cars. They equate small cars with cheapness and a lack of features. Upgrading a car has typically meant including a larger engine. In reality, the big three can make a lot of money if they add lots of luxury features in small cars.

My wife is a case in point. She recently bought a Civic in part because they offered leather seats, heated seats, a navigation system, high tech sound system, etc. and didn't try to bundle all that with a larger engine. Which GM product offers a Navigation system and 35+ mpg? Believe me, she would have liked to have purchased a GM product, but she likes small (but not tiny) cars AND upgraded content. And on our first highway trip of about 300 miles (traveling at a constant 59mph) we averaged over 43 mpg. There is no GM product that can do that.