GM to invest 450m in Argentina to manufacture a global Chevy vehicle

[PapaG]

Outsourcing.

Our bailout funds at work.

http://en.mercopress.com/2012/10/25...gentina-to-manufacture-a-global-chevy-vehicle

GM to invest 450m in Argentina to manufacture a global Chevy vehicle

The announcement was made following a meeting at Government House of GM CEO Dan Akerson with President Cristina Fernandez. Under the code name Project Phoenix, GM will manufacture a global platform car exclusive for Mercosur and the region.

The project means GM Argentina will add new vehicles for export as well as refurbish Chevrolet's vehicle portfolio for domestic customers and dealers.
“We are pleased to be making this investment in Argentina, which remains a very important market for us,” GM Chairman and CEO Akerson said in a statement.
“We have a long, proud history here dating to 1925 and our latest investment is certainly good news for our GM Argentina employees, our extensive dealer and supplier network and the local economy”, he added.

CEO Akerson headed a delegation that included GM manager for South America, Jaime Ardila; Public Affairs and Communications Vice President Selim Bingolo; GM Argentina president Isela Costantini plus the chair of the metal workers union Ricardo Pignanelli.

Cristina Fernandez met the GM delegation with Economy minister Hernan Lorenzino; Secretary of Industry, Javier Rando and Industry cabinet chief Andrea Bovris represented Minister Debora Giorgi.

“This new model to be based on a global platform will run in addition to the models we are currently manufacturing in our plant and will allow us to supply the regional and domestic market with even more high-quality, high value Chevrolet products”, said GM Argentina Ms Costantini.

 

[RR7]

Hmmm, trying to expand the products of the company, to make more money. Sounds like a good idea.

 

[PapaG]

Hmmm, trying to expand the products of the company, to make more money. Sounds like a good idea.

Using taxpayer funds to build plants in Argentina.

Sounds like a scam.

 

[DaLincolnJones]

Hmmm, trying to expand the products of the company, to make more money. Sounds like a good idea.

after hearing barrys bull shit about "bringing jobs back" what a hoot

 

[mobes23]

Right. We'd all be better off if GM had just gone under.

 

[PapaG]

Right. We'd all be better off if GM had just gone under.

They wouldn't have "gone under". They would have had a normal bankruptcy, instead of one that bailed out the unions instead of the bond holders. A bankruptcy just like thousands of other companies have gone through, only to come out better afterward.

"Bankruptcy" doesn't mean "liquidation".

The ignorance is staggering at times.

 

[mobes23]

They wouldn't have "gone under". They would have had a normal bankruptcy, instead of one that bailed out the unions instead of the bond holders. A bankruptcy just like thousands of other companies have gone through, only to come out better afterward.

"Bankruptcy" doesn't mean "liquidation".

The ignorance is staggering at times.

Hopefully that last line was directed at yourself. At the time that GM was on the precipice, there was this thing called a "financial crisis" going on. Banks weren't exactly lining up to invest in ANY companies, let alone those in dire financial situations like GM. Some months later, the company that I'm with actually raised money on the street and people were stunned that we'd accomplished it. We succeeded because we were in pretty solid financial shape, had strong business prospects and the amount raised was not prohibitive given the financial crisis. At that point in time, GM would not have been able to accomplish in bankruptcy in the way you suggest because of bad fundamentals and the huge amount of money required. Most other times what you suggest might be correct.

(And anyway, even if you were right, why do you need to be such a dork about it?

 

[PapaG]

Hopefully that last line was directed at yourself. At the time that GM was on the precipice, there was this thing called a "financial crisis" going on. Banks weren't exactly lining up to invest in ANY companies, let alone those in dire financial situations like GM. Some months later, the company that I'm with actually raised money on the street and people were stunned that we'd accomplished it. We succeeded because we were in pretty solid financial shape, had strong business prospects and the amount raised was not prohibitive given the financial crisis. At that point in time, GM would not have been able to accomplish in bankruptcy in the way you suggest because of bad fundamentals and the huge amount of money required. Most other times what you suggest might be correct.

(And anyway, even if you were right, why do you need to be such a dork about it?

Um, no. The GM bail-out was after TARP, and instead of having the bondholders be first in line for the bankruptcy, the UAW and their pensions were protected.

GM would not have "gone under", it just would have been a normal bankruptcy, instead of a government bail-out.

 

[DaLincolnJones]

Um, no. The GM bail-out was after TARP, and instead of having the bondholders be first in line for the bankruptcy, the UAW and their pensions were protected.

GM would not have "gone under", it just would have been a normal bankruptcy, instead of a government bail-out.

yep

Ford was smart to not take the money, Chrysler got fucked for the unions sake, as did GM

 

[EL PRESIDENTE]

Right. We'd all be better off if GM had just gone under.

You're probably right.

 

[julius]

stretch that rubberband a little more, you might be able to get it all the way up to your nose.

 

[PapaG]

stretch that rubberband a little more, you might be able to get it all the way up to your nose.

Next is a picture of me in a dunce cap. It is over. Let's have an adult in charge of the USA again.

 

[mobes23]

Say it all you want, but the GM bankruptcy would not have gone down like that. It would've been more like the Hummer brand ending up in China than a restructuring along the lines you are pointing to.

I don't think you understand how dicey things were during those times.

 

[julius]

Next is a picture of me in a dunce cap. It is over. Let's have an adult in charge of the USA again.

Not sure why you're bringing up a dunce cap, other then admitting your m.o.

 

[DaLincolnJones]

what was killing the US auto industry was the unions. Companies like Honda, Toyota, Hyundia, Kia, all building cars here could pay lower wages..and had nothing compared to US makers in the way of pension obligation. I dont remember the actual figures but they had about a tenth per car cost vs the US.

Had GM been able to dump all that the turn around for the company would been much quicker and would have left them on more solid ground.

 

[barfo]

GM would not have "gone under", it just would have been a normal bankruptcy, instead of a government bail-out.

Do tell us specifically who would have provided the financing, if not the government.

Don't you think GM would have preferred taking private money, if they could have gotten any?

Your theory has the major problem: if GM could have gone through a normal bankruptcy, why didn't they?

barfo

 

[EL PRESIDENTE]

they won't have to pay back the government. :MARIS61:

 

[julius]

Do tell us specifically who would have provided the financing, if not the government.

Don't you think GM would have preferred taking private money, if they could have gotten any?

Your theory has the major problem: if GM could have gone through a normal bankruptcy, why didn't they?

barfo

Um, duh? Obama is a socialist.

 

[DaLincolnJones]

Do tell us specifically who would have provided the financing, if not the government.

Don't you think GM would have preferred taking private money, if they could have gotten any?

Your theory has the major problem: if GM could have gone through a normal bankruptcy, why didn't they?

barfo

El Prez is on it here. They got sweat heart deals up front. The true costs of the money became apparent only later. When the white house had the power to dictate the future of those who had stepped to the feed bag, well that was the end for chrysler being a US company, being forced to sell to fucking fiat (yeah, they know how to build cars...) This was also a move to save the unions.

Fucking GM became union and US owned..as an aside, have you noticed how friendly the gov and the press are toward GM now, compared to , say four years ago..


Again, only ford closed old plants in spite of the union bs, and restructured. Now they have one of the best lineups in decades.

 

[mobes23]

Ford was in much better shape than GM and it's not a good comparison.

 

[DaLincolnJones]

Ford was in much better shape than GM and it's not a good comparison.

no, not at all GM still had GM finance. Very profitable. Hummer, All the military contracts alone were going to be able to keep GM afloat. Takeing the bailout monies was to make things "easier" for the company.

I know that Ford was on the fence, but took the loses, closed plants, dropped platforms, etc. Lost Mercury, almost lost Lincoln Ford finance was hard hit.

 

[barfo]

no, not at all GM still had GM finance. Very profitable. Hummer, All the military contracts alone were going to be able to keep GM afloat.

Ok, that's just nuts. "GM was in fine shape, they didn't need a bailout or bankruptcy". Sure.

Takeing the bailout monies was to make things "easier" for the company.

Sure. Anyone who has ever done business with the federal government - and GM had done plenty - would know it wouldn't make things easier.

GM didn't do it because the government offered them a great deal. They did it as a last resort, because they hadn't planned for the economy to collapse in 2008 and were caught with their pants down.
Ford survived because they had the foresight or luck to borrow a ton of cash just before the crash.

barfo

 

[PapaG]

Ok, that's just nuts. "GM was in fine shape, they didn't need a bailout or bankruptcy". Sure.



Sure. Anyone who has ever done business with the federal government - and GM had done plenty - would know it wouldn't make things easier.

GM didn't do it because the government offered them a great deal. They did it as a last resort, because they hadn't planned for the economy to collapse in 2008 and were caught with their pants down.
Ford survived because they had the foresight or luck to borrow a ton of cash just before the crash.

barfo

Irrelevant, at least how it pertains to a normal bankruptcy filing. Obama needed to keep his union friends like Trumka happy. Now, GM is nearing another bankruptcy, and hopefully President Romney doesn't fuck over the private bondholders this time.

 

[barfo]

Irrelevant, at least how it pertains to a normal bankruptcy filing.

Sorry, what was irrelevant?

Obama needed to keep his union friends like Trumka happy. Now, GM is nearing another bankruptcy, and hopefully President Romney doesn't fuck over the private bondholders this time.

Oh, right, your post.

barfo

 

[PapaG]

Sorry, what was irrelevant?



Oh, right, your post.

barfo

Har har har.

You got me!! DERP

 

[maxiep]

Hopefully that last line was directed at yourself. At the time that GM was on the precipice, there was this thing called a "financial crisis" going on. Banks weren't exactly lining up to invest in ANY companies, let alone those in dire financial situations like GM. Some months later, the company that I'm with actually raised money on the street and people were stunned that we'd accomplished it. We succeeded because we were in pretty solid financial shape, had strong business prospects and the amount raised was not prohibitive given the financial crisis. At that point in time, GM would not have been able to accomplish in bankruptcy in the way you suggest because of bad fundamentals and the huge amount of money required. Most other times what you suggest might be correct.

(And anyway, even if you were right, why do you need to be such a dork about it?

GM didn't have a revenue problem; they had an expense problem, specifically in labor and legacy costs. Emerging from Chapter 11, I-banks would have lined up to sponsor an equity issuance.

 

[maxiep]

Say it all you want, but the GM bankruptcy would not have gone down like that. It would've been more like the Hummer brand ending up in China than a restructuring along the lines you are pointing to.

I don't think you understand how dicey things were during those times.

I would argue I understand the situation faced by investment banks during that period and I couldn't disagree with your position more fundamentally.

 

[NOVoodoo]

Interesting timing. This is a knee-jerk reaction to Ford Motor Company's decision for global manufacturing platforms, a decision that was made some time ago. The efficiency and results of Ford's manufacturing strategy saved their asses during the crisis (as well as some other well thought out moves by Mulally, such as simplifying their core brand complexity). So now GM wants to do the same thing. The only difference is, GM has accepted federal bail-out money, and Ford did not. Why would GM decide to do this right around the election?

(Also, I encourage those of you who are aware of the government bail-out situation but not aware of the extent of its impact on the competitiveness of the American automobile industry to check out the government's involvement with the Chevy Volt.)

 

[PapaG]

This is simply a knee-jerk reaction to Ford Motor Company's decision for global manufacturing platforms. The efficiency and results of Ford's manufacturing strategy saved their asses during the crisis (as well as some other well thought out moves by Mulally, such as simplifying their core brand complexity). So now GM wants to do the same thing. The only difference is, GM has accepted federal bail-out money, and Ford did not.

That's not the "only" difference. UAW's pensions were saved in the GM bail-out, and private citizens, including mutual funds tied to 401ks, took the loss.

 

[DaLincolnJones]

GM didn't have a revenue problem; they had an expense problem, specifically in labor and legacy costs. Emerging from Chapter 11, I-banks would have lined up to sponsor an equity issuance.

I guess that sounds better than me saying that they were getting fucked by the unions, lol