Thursday, June 25th, 2009
Rough times compounded by retirement has become a concern for most former employees of General Motors who were not part of the United Auto Workers which was responsible for the negotiations prior to the bankruptcy of the famed automotive manufacturer. In fact, not all are covered which only means that more than the ones represented during the talks are likely to be suffering all the more.
Benefits will be slashed severely for these non-members, something that has been able to support them in their daily livelihood. Now, they are left with lesser things to survive on, the only recourse they have of which is to seek Congressional Protection for their losses.
“For people living on a fixed income, the benefit losses proposed by GM are breathtaking,” said Karen DeOrnellas, Director of Communications for GMRA. “These retirees are old. Many are sick or disabled. In almost all cases they cannot make this money back or return to work.”
GM retirees have written GMRA to say the latest proposals for benefit losses will make them choose between paying for prescription drugs and paying for food, electricity, and housing. Many will be unable to replace lost life insurance, jeopardizing the ability of their spouses to remain in their homes.
(Source) Press
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Posted in Cars, GM, Industry | Comments
Thursday, May 28th, 2009
If you could sum it all up, the current issue surrounding the negotiations and restructuring proposals on the part of bondholders has not been moving well. And while GM is aggressively trying to come up with an acceptable deal that will benefit all, it is common logic that no bondholder at this point would want something lower than what they had invested to come back to them.
The “offer” to individual GM bond investors is ridiculously lopsided because it arbitrarily favors other groups, at the expense of the legal rights, under the U.S. Constitution, of hundreds of thousands of individual GM bond investors.
True enough, this has become the reason for the stalemate. On the part of bondholders, it is understandable that they will not accept and be given a mediocre promise. Then again, with such as stand-off at the moment, would they not end up getting nothing else in return should GM close its doors?
For now it seems like a waiting game. Similar to a chess game, the bondholders and GM are trying to find a great solution to satisfy all parties involved, including the U.S. government.
(Source) Press
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Posted in Business, GM, Industry | Comments
Wednesday, April 15th, 2009
Carmax Inc. has vouched to help urge Congress to include used cars in the “Cash for Clunkers” proposals. By including used vehicles, this legislation is better positioned to promote fuel efficiency, save jobs, and help more Americans afford a car. One legislative proposal that does include used cars is S. 247, sponsored by Senators Feinstein, Schumer, and Collins.
“More people will be able to participate in the program, more jobs will be saved, and more fuel-efficient vehicles will end up on the road by including used vehicles,” said Tom Folliard, president and chief executive officer. “Excluding this segment of the auto industry could potentially have a negative impact on millions of American workers and thousands of U.S.-based businesses. Nationally, used car sales outnumber new car sales nearly 3 to 1.”
Including used vehicles in the legislation will have the following benefits:
- Help More Americans Afford to Buy a Car
- Save More American Jobs
- Increase the Number of Eligible Fuel-efficient Cars on the Road
(Source) Press
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Posted in Business, Cars, Industry, Law | Comments