Archive for the 'Auto bailout' Category

Who owns GM?

December 4, 2008

Who owns GM?

  1. UAW workers
  2. UAW VEBA
  3. UAW Jobs Bank
  4. Pension Benefit Guaranty Corp, PBGC
  5. State welfare and family assistance
  6. Social Security, Medicare and Medicaid
  7. Auto Dealers
  8. Suppliers
  9. Bond Holders
  10. Shareholders
  11. Management

Who needs to make concessions?  All of them.  Same applies to Ford and Chrysler.

Some additional solutions beyond those discussed.

  1. Buy 10,000 tanks.  M-1 Abrams costs 4.35 million.  That is like 200 cars each.  So that would come to the equivalent of 2 million cars.  Cost is 43.5 billion dollars.
  2. Buy 10,000 APC.
  3. Buy 20,000 other military vehicles.
  4. Buy government fleet of hybrids of 1 million vehicles.  Sell used.
  5. Refit massive transit system of trams, trolleys, subways, buses, etc.

http://www.nytimes.com/2008/02/12/business/12cnd-auto.html?_r=1&hp&oref=slogin

To cut costs further in the United States, G.M. said employees represented by the United Automobile Workers union can elect to take buyouts of up to $140,000.

Those eligible to retire can do so with full benefits and a payout of $45,000 for production workers or $62,500 for skilled tradespeople. Those amounts are $10,000 and $27,500 higher than what the company offered in 2006, when 30,000 U.A.W. workers agreed to leave their jobs.

Other options include an early retirement program for workers with slightly less than 30 years of seniority or a cash buyout of either $70,000 or $140,000 in exchange for giving up health care and other post-retirement benefits.

Obviously a lot of fat here.

http://falkenblog.blogspot.com/2008/06/lowensteins.html

Over a fifteen-year stretch ending in 2006, GM poured $55 billion into its workers’ pension plan, compared to only $13 billion that it paid out in dividends.

From Lowenstein’s While America Aged.

http://www.google.com/search?client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&channel=s&hl=en&q=%22who+owns+GM%22&btnG=Google+Search

http://www.neatorama.com/2008/11/24/10-things-you-didnt-know-about-general-motors/

http://finance.yahoo.com/q/ks?s=gm

http://www.nytimes.com/2008/12/04/business/04swap.html

http://www.gm.com/corporate/investor_information/fixed-inc-sec/

Page 38 balance sheet:

http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/download/gm07ar_financials.pdf

2007 Balance Sheet

Consolidated Balance Sheets
(Dollars in millions) December 31, 2007 2006
ASSETS
Current Assets
Cash and cash equivalents $÷24,549 $÷23,774
Marketable securities 2,139 138
Total cash and marketable securities 26,688 23,912
Accounts and notes receivable, net 9,659 8,216
Inventories 14,939 13,921
Equipment on operating leases, net 5,283 6,125
Other current assets and deferred income taxes 3,566 12,982
Total current assets 60,135 65,156
Financing and Insurance Operations Assets
Cash and cash equivalents 268 349
Investments in securities 215 188
Equipment on operating leases, net 6,712 11,794
Equity in net assets of GMAC LLC 7,079 7,523
Other assets 2,715 2,269
Total Financing and Insurance Operations assets 16,989 22,123
Non-Current Assets
Equity in net assets of nonconsolidated affi liates 1,919 1,969
Property, net 43,017 41,934
Goodwill and intangible assets, net 1,066 1,118
Deferred income taxes 2,116 33,079
Prepaid pension 20,175 17,366
Other assets 3,466 3,559
Total non-current assets 71,759 99,025
Total assets $148,883 $186,304
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable (principally trade) $÷29,439 $÷26,931
Short-term borrowings and current portion of long-term debt 6,047 5,666
Accrued expenses 34,822 34,120
Total current liabilities 70,308 66,717
Financing and Insurance Operations Liabilities
Accounts payable 30 192
Debt 4,908 9,438
Other liabilities and deferred income taxes 875 1,947
Total Financing and Insurance Operations liabilities 5,813 11,577
Non-Current Liabilities
Long-term debt 33,384 33,067
Postretirement benefi ts other than pensions 47,375 50,409
Pensions 11,381 11,934
Other liabilities and deferred income taxes 16,102 17,062
Total non-current liabilities 108,242 112,472
Total liabilities 184,363 190,766
Commitments and contingencies (Note 17)
Minority interests 1,614 1,190
Stockholders’ Defi cit
Preferred stock, no par value, authorized 6,000,000, no shares issued and outstanding – –
$1 2/3 par value common stock (2,000,000,000 shares authorized, 756,637,541 and 566,059,249 shares issued
and outstanding at December 31, 2007, respectively, and 756,637,541 and 565,670,254 shares issued and outstanding
at December 31, 2006, respectively) 943 943
Capital surplus (principally additional paid-in capital) 15,319 15,336
Retained earnings (defi cit) (39,392) 195
Accumulated other comprehensive loss (13,964) (22,126)
Total stockholders’ defi cit (37,094) (5,652)
Total liabilities, minority interests, and stockholders’ defi cit $148,883 $186,304
Reference should be made to the notes to consolidated fi nancial statements.

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