Will the GM bankruptcy effect you?

[funkydaddy59]

I've never owned a GM but he town I live in has only one new car dealer, GM. A few years ago the local chrysler dealer closed it's doors and moved to another town. I have not heard whether the GM dealership is on the closure list or not, but I hope it stays.

 

[300UGUY]

I am gonna be affected pretty directly. I retired last year from GM. Really too early, as I was only 53, but with the plant closing, it seemed to be the best option. From what I have seen so far, I won't be losing any of my pension, but that might be in the short term. Effective immediately, I have lost my dental and vision care. A visit to the ER will cost $100, unless admitted. Office calls are not covered. They weren't before either. My copays on meds are up to $25 by mail, I think $35? if not. We have always had copays, we have never had "free" health care. A big part of the "legacy" problem is there are about 6 or 7 retirees for every worker.

Financially, I am ok. We paid off our house several years ago, and have no debt at all. My wife has a successful small business, that helps a lot. I looked into going back to school to be a nurse, but the waiting list is 3+ years before I could start a 2 year program. I am looking for a new career. I am not crazy about going back into a factory job. Any suggestions???

As far as GM management goes, I don't see any great villians. I read that the sales in 2007 were 17 or 18 million units. They had contingency plans for sales @16,15,14 million units. If sales dropped to 13 M units, all the companies were underwater. Sales dropped to 9.5M !! The media has to keep reaching back into 1930's to find comparable events.

The new GM employees are going in at a rate of $14.50 per hour, no pension, no healthcare in retirement. And reduced benefits. GM employees were the best customers GM had. I don't see how the new guys are gonna fill those shoes. I also don't see how these guys are gonna educate their kids. The middle class has taken another hit.

 

[scott_vt]

Financially, I am ok. We paid off our house several years ago, and have no debt at all. My wife has a successful small business, that helps a lot. I looked into going back to school to be a nurse, but the waiting list is 3+ years before I could start a 2 year program. I am looking for a new career. I am not crazy about going back into a factory job. Any suggestions???

.

Good Evenin 300UGUY,
Sorry to hear about your problems ! I got layed off from Pitney Bowes back in Nov of 07. I was a toolmaker/modelmaker for 36 years and just didnt want to stay in the trade any longer ! I got my hazmat and tanker endorsement for my CDL so I could drive oil trucks. This time of the year Im only working about a day plus still collecting partial unemployment, when fall comes I will go back to full time until April and then part time again. Im just about 58 so this should work out for the next few years when I can collect my pension and SS. Keep your chin up and find something that you will like !

 

[2manyrocks]

A lot of people who are just trying to provide for their families are being affected by this economy. They just got caught unexpectedly in the downturn.

A friend in the music business told me this afternoon he has lost $100,000 so far this year, and he and his partners are trying to decide whether to keep on or shut down. Another friend who was a skilled music editor for a large company that almost never lays anyone off has recently been laid off. Both of them are experienced, motivated people, but when there are no buyers for your products, what do you do then?

 

[riptides]

Any suggestions???

Wow.. I mean WOW. Your benefits are incredible.

Still.

Don't go into IT.

I have been through three mega-mergers. Each time my benefits eroded.

I lost my Pension. Lost retirement medical coverage, lost both stock options and employee purchase plans, lost my 401k and took salary cuts. In fact my take home peaked in 2004 and has come down each year since. My medical costs, "benefits" have skyrocketed over the past few years. Nothing is covered 100 percent.

I am worth more dead than alive. Incredible. It is still about wall street and beating expectations. After all the business of America is business...

 

[radman1]

The government loaning chrysler or gm billions of dollars last fall was rediculous. The Government now owns 72% of Gm and 10% of Chrysler. I knew it would change nothing but delay bankruptcy a few months. Totally wasted money. Yet, the Feds will pump even more $$ into them to keep them solvent during bankruptcy and later for new start up costs. I will get blasted for this, but I wish Chrysler would just fold and Fiat backs out. More market share for the other big 2 and they will survive. Ford is headed down the same path, unless the UAW gives them the same concessions as GM and Chrysler. Ford can't survive with the existing high legacy costs that the other 2 companies no longer have. My guess, is UAW will take Ford to the brink of bankruptcy before they give in.

 

[radman1]

I am gonna be affected pretty directly. I retired last year from GM. Really too early, as I was only 53, but with the plant closing, it seemed to be the best option. .

I am sorry to hear about your plight. However, you mentioned the problem. You retired because you got a good compensation to quit early and the pension plan was so good it seemed reasonable. This practice is not financially sustainable. I am 49 but there is no way I would consider retirement until 65 or later unless forced to by health concerns.

My BIL is a cop in a small town. He knows of many cops in some states (Calif, and NY for example) and larger cities get pension plans that provide all of the existing benefits plus 90% of their salary in their pensions. They can opt for full pension after 20-25 years of service. Many will "retire" take another cop postion in a different state, and start over again with another salary and pension - while still getting the prior benefits and income. The same is true for many Firefighters. It is no wonder companies and governments are in financial trouble.

 

[milkman]

I though the govenment was supposed to be taking GM over to keep them in opperation?

Yep, that's what Rush claims.

 

[Mike120]

I worked for them in Europe and happily took a package when they wanted to transfer me to Detroit. GM was the most disfunctional company I have ever worked for. I still had options and cashed in all I could the year after I left. A year after that the stock was less than half of my option prices.

They caused their own problems through mismanagement and poor quality products. I see no reason whatsoever why we should bail them out.

 

[/pine]

If you're holding GM (common) stock...you're out of luck...it won't even make good Wall or Toilet paper...!