While sales fall, GM pays Slick $200K for one speech

[Reatta Man]

As sales fall, plants close, people get laid off and stock values remain pretty stagnant, GM pays Bill Clinton $200,000 for one speech.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070614/UPDATE/706140464/1148/AUTO01

And they wonder why they are loosing money.......

[NTX5467]

Stock values have been "sideways" of late, but have been up (about 10% from 09/06 levels, which I'm monitoring) of late. In 02/07, it was up about 16% from 09/06, but lost those gains.

It's pretty easy to take a little "bad" or "marginally bad" news and extrapolate it to cover much more territory than it should. By the same token, $200K is major bucks to many of us, but not nearly so significant in any multi-national operation. Yes, it is a lot of money that might have been allegedly spent to do other things, but $200K is a drop in a moderately-size bucket for advertising, employee items, and stock dividends . . . a "point of reference" issue. And, of course, it could have already been budgeted somewhere!

I also suspect that many of the plant closings will be when the current product in said plants will reach the end of their current production cycle. This would be one of those latent issues which every automotive (defense industry or other "contract" industry) plant worker has in the back of their minds, I suspect. Still, they make good while they can.

Unlike in prior decades, "no future product" can mean various things to these workers in their respective automotive-related plants . . . as manufacturers are seemingly constantly jockeying to determine what products will sell in 5 years (and which ones to invest in as a result) . . . which has become increasingly difficult to predict in our modern world, regardless of how much research or data might exist, unlike 40 years ago. From the news articles I've read on announced plant closings, they generally are "end of product cycle" closings with no new product to replace the current product. Some of the plants being closed are older plants that would require more money to refurbish for future product production (machinery, paint shops, etc.) than it would cost to build a new one that will meet current and future needs more efficiently. Still, there is a certain amount of respect for that older plant that seems to vanish as younger generations of "management" come online, just as it does for older car dealership locations--that "Gotta be NEW or it's not any good" orientation, it seems.

Closing these plants and converting the real estate back to something saleable can be an expensive proposition, too. This can be a equally devasting to the area as the lost jobs, in some cases, but as some of my research has revealed, things eventually get past those points to go onto bigger and better things. Sales tax dollars replace property tax dollars, which also takes a while to happen--nothing happens nearly as quickly as we might like, in that respect.

As far as "product" goes, there are market areas which every automotive manufacturer should be in, including price point issues and demographic issues (i.e., Chevy, Pontiac, Buick, Cadillac, Saturn, and others . . . EVEN IF there is some price point and model overlap). So, there should be some stability in that respect, but a vehicle family's production can change physical location from time to time, depending upon various factors.

Yet, anytime an existing plant is closed with no new one to replace it close-by, it's a blow to the state and national economy which can't be fully measured by "the numbers". Jobs which replace those lost in the manufacturing sector never do reach the same levels of basic compensation, for the afffected workers, by observation. Employment numbers generated are still high, but the standard of living of those affected can take a BIG hit, not to mention other sectors of the economy (banking, finance, etc.) whose operations depend upon "disposable income" of their customers. When you see some of these things play out 30+ years later, it kind of makes you wish you'd gone into the military (and retired from same) rather than taking the life-course you did--but you never know what the future might have in store.

Many different ways to look at some of these things, depending upon your vantage point, with all due respect.

NTX5467

[NTX5467]

GM stock values have been "sideways" of late, but have been up (about 10% from 09/06 levels, which I'm monitoring) of late. In 02/07, it was up about 16% from 09/06, but lost those gains.

It's pretty easy to take a little "bad" or "marginally bad" news and extrapolate it to cover much more territory than it should. By the same token, $200K is major bucks to many of us, but not nearly so significant in any multi-national operation. Yes, it is a lot of money that might have been allegedly spent to do other things, but $200K is a drop in a moderately-size bucket for advertising, employee items, and stock dividends . . . a "point of reference" issue. And, of course, it could have already been budgeted somewhere!

I also suspect that many of the plant closings will be when the current product in said plants will reach the end of their current production cycle. This would be one of those latent issues which every automotive (defense industry or other "contract" industry) plant worker has in the back of their minds, I suspect. Still, they make good while they can.

Unlike in prior decades, "no future product" can mean various things to these workers in their respective automotive-related plants . . . as manufacturers are seemingly constantly jockeying to determine what products will sell in 5 years (and which ones to invest in as a result) . . . which has become increasingly difficult to predict in our modern world, regardless of how much research or data might exist, unlike 40 years ago. From the news articles I've read on announced plant closings, they generally are "end of product cycle" closings with no new product to replace the current product. Some of the plants being closed are older plants that would require more money to refurbish for future product production (machinery, paint shops, etc.) than it would cost to build a new one that will meet current and future needs more efficiently. Still, there is a certain amount of respect for that older plant that seems to vanish as younger generations of "management" come online, just as it does for older car dealership locations--that "Gotta be NEW or it's not any good" orientation, it seems.

Closing these plants and converting the real estate back to something saleable can be an expensive proposition, too. This can be a equally devasting to the area as the lost jobs, in some cases, but as some of my research has revealed, things eventually get past those points to go onto bigger and better things. Sales tax dollars replace property tax dollars, which also takes a while to happen--nothing happens nearly as quickly as we might like, in that respect.

As far as "product" goes, there are market areas which every automotive manufacturer should be in, including price point issues and demographic issues (i.e., Chevy, Pontiac, Buick, Cadillac, Saturn, and others . . . EVEN IF there is some price point and model overlap). So, there should be some stability in that respect, but a vehicle family's production can change physical location from time to time, depending upon various factors.

Yet, anytime an existing plant is closed with no new one to replace it close-by, it's a blow to the state and national economy which can't be fully measured by "the numbers". Jobs which replace those lost in the manufacturing sector never do reach the same levels of basic compensation, for the afffected workers, by observation. Employment numbers generated are still high, but the standard of living of those affected can take a BIG hit, not to mention other sectors of the economy (banking, finance, etc.) whose operations depend upon "disposable income" of their customers. When you see some of these things play out 30+ years later, it kind of makes you wish you'd gone into the military (and retired from same) rather than taking the life-course you did--but you never know what the future might have in store.

Many different ways to look at some of these things, depending upon your vantage point, with all due respect.

NTX5467

[Bhigdog]

Slick didn't get paid 200K for the speech. What the hell does he know about the car market? what he got was a bribe, disguised as a fee, for favorable treatment. especially should his slippery mate get elected.......Bob

[Guest GS70Stage1]

Does anyone have the text of his speach. That would tell me much more thant anything. Would love to know what he said for the money. Sure hope the Flint group doesn't have him speak at the 2008 Nats

[The Old Guy]

The only speakers scheduled for the 2008 meet in Flint are definitely Buick related. I think that there will be Terry Dunham,and Denny Manner for sure, and maybe another historian.

"Slick Willy" will NOT be addressing the group.

[BUICK RACER]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: GS70Stage1</div><div class="ubbcode-body">Does anyone have the text of his speach. That would tell me much more thant anything. Would love to know what he said for the money. Sure hope the Flint group doesn't have him speak at the 2008 Nats </div></div>

I read in the paper somewhere that he did not make a speech, it was canceled since his flight was delayed out of NY, and will be rescheduled.

I'm not even going to comment on the second comment.