RE: Re: [Pen-l] labor and the auto companies

["David B. Shemano" <dshemano@xxxxxxxxxx>]

Michael Perelman writes:

>> Your idea is interesting, but nobody would give them the finance necessary to turn it
>> around.  They would loose more than the company is worth before they had time to put
>> it on solid footing.

Not true.  Plenty of people would be willing to finance GM if it restructured its balance sheet.  The notion that nobody wants to buy GM cars is ridiculous -- my goodness, the company had $165 billion in sales last year.  The problem is nobody wants to buy GM cars at a price that will allow GM to operate at a profit based upon its existing debt and cost structure.  However, to restrucuture its balance sheet, GM would have to restucture its labor and retirement costs.  So if the UAW wanted to own the company and obtain financing to operate, they would have to negotiate with themselves.

David Shemano
_______________________________________________
pen-l mailing list
pen-l@xxxxxxxxxxxxxxxxxx
https://lists.csuchico.edu/mailman/listinfo/pen-l