Analysis: GM Bondholders Took 'Sweetened Deal'

General Motors said Thursday a committee of bondholders has agreed to a sweetened deal proposed by the U.S. government to erase the automaker's unsecured debt in exchange for company stock. (May 28)

Category:

News & Politics

Tags:

• gm
• bondholders
• analysis
• took
• sweetened
• deal

[toeg1]

xavier,

The union is basically powerless here. If you look at the give and take, the union in both companies agreed to all demands, but the hedge fund owners balked at both. The unions agreed to less money, less health care, less benefits, and less workers. The hedge fund owners want more money and they don't care who gets sacked along the way. They are billionaires and they want their money.

This isn't France or Great Britain where the unions are strong.

[xavierartorivs]

Well I am still upset with GM. I had a job offer 3 years ago to work along the lines of 6 sigma and 2 days before the start date, they killed the 20 jobs that were to focus on lean manufacturing. The union felt that those "salaried" jobs would hurt their union members.

[toeg1]

xavier,

Good point. The initial investment into the Saturn method was over $1 billion, but the rewards far outstripped that amount and showed a much more efficiently and effectively run production line with better quality.

This is going just like Chrysler. The hedge fund owners are saying no, even though they are already reaping tens of billions. They WANT GM and Chrysler to fail, putting millions out of work. That way they can get even more from the Fed.

[d3v07]

AHHHH horseshit.

[xavierartorivs]

It is a bit laughable that Saab and Saturn are listed as "toxic." GM learned nothing from Saturn's method which was the closest process they had to Toyota's lean manufacturing 6 sigma method.