"Today's equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet," Ford Chief Executive Alan Mulally said in a statement.

Looks like FORD is doing things right, lets hope America intern helps them through these tough times.

Gee, Ford is still solvent yet they have to deal with the same unions as the other big auto makers.
Guess management does make a difference after all even if the rightards blame every problem on the UAW.

Yes Danni,

management makes a big difference and Mulally came from the production floor, not cars mind you but knows the workers and what they contribute.

I don't think everyone blames every problem on the UAW, but they are complicit in some of the problems.

This story indicates that management does make a difference. Ford is managed correctly and GM is/was not.

I was going to post this but Rcade likes to delete my posts after one day to make room for more stories about obama's pimple or bristol palins itchy twat. Anyway, this is the most important piece of news today. It is about GM's plans to leave Detroit, and possibly even the US.

"Gee, Ford is still solvent yet they have to deal with the same unions as the other big auto makers.
Guess management does make a difference after all even if the rightards blame every problem on the UAW"

How could we have been so stupid, i mean ford always post huge profits right? Oh wait, its national news when they do, something life one quarter of profit in the last two years.
I just find it amazing how many are willing to defend each unions every action and criticize those that find fault with them and paint them as just anti union, partisan hacks. Can they really be so blinded that they don't even realize that they are doing the same thing when they lift the unions to god status? Aside from that i just think it is time to retire that tired strawman, no one thinks that the management had absolutely nothing to do with it never has and never will. Admit some culpability on the side of the unions and at least feign some shred of reason, after all it takes two to do the funky chicken(wait that's not right).

"Admit some culpability on the side of the unions and at least feign some shred of reason, after all it takes two to do the funky chicken(wait that's not right)."

Er...the unions have negotiated lower wages while assholes like Sen. Shelby pretend it is 100% a union labor problem with the auto industry. I think you have things a bit backwards.

""Unless Chrysler, Ford and General Motors become lean and innovative and competitive in the market place, this is only delaying their funeral," said Sen. Richard Shelby, an Alabama Republican and bailout opponent."

Sen. Shelby pretend it is 100% a union labor problem with the auto industry. I think you have things a bit backwards.

#6 | Posted by danni

danni, this is the one subject that I find myself in serious disagreement with you.

Shelby never said that and he doesn't believe it. I know this, because he is a person of my acquaintence.

And he knows what he is talking about. Of all the auto intersts that he helped lure to alabama as part of a delegation, not one of those entities has asked for federal help.

alabama will not and does not stop a union from organizing, but they will not le them stop other people from working just because they don't belong to a union. This is really what has you pissed of with the whole southern thing. Doing it otherwise equals extortion from the unions.

Numbers don't lie, people do.

"Numbers don't lie"

I don't know about that. I heard the 4 told the cops that he had seen some atrocities that were carried out by 5 but the truth prevail and they found out that that what really happened was 7 8 9. Rest assured that 7 is now paying for his crimes.

"not one of those entities has asked for federal help."

They were Japanese and their government did bail them out.

The state of Alabama, through tax breaks etc. subsidized those companies heavily.

"Doing it otherwise equals extortion from the unions."

Or, it means unions can gain real power against employers. Apparently you're anti-union, I'm not.
If only I could be "extorted" into accepting higher wages.

They were Japanese and their government did bail them out.

#10 | Posted by danni

Mercedes is japanese now?

##############################
#####

The state of Alabama, through tax breaks etc. subsidized those companies heavily.

#11 | Posted by danni

yes, they did give a tax break, just like every other state proposed to do, but alabama was the only one that would guarantee that unions would never extort money from them.

BTW, those tax breaks have expired many years ago.

"BTW, those tax breaks have expired many years ago."

Depends what your definition of "expired" is. Alabama is still in the hole, and will be for another decade. Regarding one of the deals made with Honda:

Samuel Addy, interim director of the University of Alabama's Center for Business and Economic Research, has calculated 20 years will pass before Alabama possibly beaks even if some large Honda suppliers follow the company to the region

Apparently you're anti-union, I'm not.

#12 | Posted by danni

Danni, danni, danni, I'm not anti-union, per se. It is just that they engage in business practices that will only kill whatever company they are involved with.

My wife works at a union shop. They have to hire 25% more employees to do the same work as non-union shops because of union allowances and the fact that you can't fire anyone, no matter how worthless they are. There are some people there that take a 30 minute smoke break every hour.

BTW, that shop is being shipped to Korea, piece by piece, as we speak. They have decided that the average cost of making the fibers in the US is over $25/hr/employee, while they can do it in Korea for under half that.

Remember that next time you go to buy so-called union made goodyear tires.

"It is just that they engage in business practices that will only kill whatever company they are involved with."

I'm sure the Screen Actors Guild would be surprised to hear that.

" There are some people there that take a 30 minute smoke break every hour."

The contract certainly wasn't negotiated that way; why doesn't the company enforce the contract?

"They have decided that the average cost of making the fibers in the US is over $25/hr/employee, while they can do it in Korea for under half that."

Well, if the American workers would just cut their pay in half, all the problems would be solved, wouldn't they?

Regarding one of the deals made with Honda:

#14 | Posted by Danforth

Honda was more recent than the other ones.

Plus, why should you give a shit, you don't live there, I do. I'm not connected or related to the auto industry in any way shape or form but i see what they are doing for the state and it's all positive. The people of alabama will make that deal every day of the week and twice on sunday.

You are just pure ignorant if you think getting the 3 best auto makers in the world (toyota, honda and mercedes) to live in your state is a bad thing, even if it means waiting twenty years to break-even on corporate tax revenues. Corp. tax revenues is only a small way that a state makes money off of an investment in a company.

If it is so easy, then why doesn't some of these other states do it too? Oh, I know, because they are too smart, right? Or, maybe they are too stupid? Or, maybe, they enjoy being broke and poor. Or maybe their kindness and purity disallows them from engaging in anything that makes sense. The truth is that they have no way to climb out of the hole they have dug for themselves and they can't offer anything to these companies.

You can rationalize it all you want but it comes down to the same thing, Unions killed American Industry. States that have right to work laws are flourishing, states that don't are floundering.

Have you guys heard about that giant steel mill (Krupp)that they are currently building in Mobile alabama? How many of your states have new industry re-locating from europe and asia?

Well, if the American workers would just cut their pay in half, all the problems would be solved, wouldn't they?

#17 | Posted by Danforth

Believe it or not, that would not solve it because that is not the largest problem.

The largest problem is promised pensions and health care benefits.

Half the salaries and get rid of those and in about 20 years, maybe the unions will be viable again.

Plus, get rid of the senority rules.

Danni, danni, danni, I'm not anti-union, per se.

Bullshit!

This is an article about how the AMERICAN company is making it without bailouts and all you can do is trash but at the same time slight of hand bash this AMERICAN company for the japanese.

Go figure, it clearly shows why GM is talking about leaving, no reason to stay in America too many people like zip hate them.

The largest problem is promised pensions and health care benefits.

Lip,

What a moron, did you even read this article.

but knows the workers and what they contribute.

#3 | Posted by moneywar at 2009-05-12 09:03 AM

They are a commodity to be exploited and pissed on.

Sincerely,

The Corporate Apologists.

They have to hire 25% more employees to do the same work as non-union shops because of union allowances and the fact that you can't fire anyone, no matter how worthless they are. There are some people there that take a 30 minute smoke break every hour.

#15 | Posted by Lipzoidial at 2009-05-12 03:02

I am sure that you have a link to prove those facts.

"The largest problem is promised pensions and health care benefits."

If you're talking Detroit, it's because management thought it was a good idea, rather than fully fund their liabilities as they went along, to take larger salaries and bonuses, and push off pension and health costs onto tomorrow's cars...which have now become today's cars. But that was probably the workers' fault, too, for not telling the owners how to run their business.

"I am sure that you have a link to prove those facts."

You got a link that proves your not a cephalopod?
People that have worked around unions have seen this kind of stuff, maybe not quite to that extent but have seen it. By denying it you are only proving one of two things, that you have never set foot outside your mothers basement or that you choose to blind yourself to anything that does not fit what you are told to believe.

But that was probably the workers' fault, too, for not telling the owners how to run their business.

unions come closer to doing that than any other labor in this country. Ford appears to be an exception but usually when unions have some say then the company is shit....what a coincidence.(I am kidding in part because I agree with you that management sucks)

BTW, the effort you make to equate "promised pensions and health care benefits" to "probably the workers's fault" is obvious.

One is a mistake by mgt and the other is where you blame the worker for that mistake. Not the same thing.

"But that was probably the workers' fault, too, for not telling the owners how to run their business."

Ahh the whole "we demanded but it's there fault they gave it to us" routine. Sad, tired, and never worked is that what they are still telling you to say down at the hall?

"The people of alabama will make that deal every day of the week and twice on sunday."

As will the people of Mexico, cheaper than Alabama.

Then China. Then Malaysia.

I guess it's a race to the bottom...where's the accelerator?

"One is a mistake by mgt and the other is where you blame the worker for that mistake. Not the same thing."

But I thought all Detroit's problems were due to the Unions?

Of course...in actuality, pay GM hourly workers the same as the Honda hourly workers, and it still goes belly up.

"Ahh the whole "we demanded but it's there fault they gave it to us" routine."

Ahh, the whole "we don't really know how to run a business, and it's the workers fault we agreed to the contract" routine.

And anyone looking to choose sides, ask yourself this: which one actually lived up to it's part of the bargain?

Salamand,

I can tell you have never worked, or dealt with a union so one has to ask why you begrudge something you know nothing about.

Again, the article is about how FORD and AMERICAN company is moving toward success and you begrudge them.

One has to wonder why you hate the idea of an AMERICA car company is being a success and honoring their contracts with labor.

And anyone looking to choose sides, ask yourself this: which one actually lived up to it's part of the bargain?

I'll leave the "choosing sides" to others. It is ideology that places them there.

However I have a question, what was labor's "part of the bargain"?

They have to hire 25% more employees to do the same work as non-union shops because of union allowances and the fact that you can't fire anyone, no matter how worthless they are. There are some people there that take a 30 minute smoke break every hour.

No, they actually have less employees then non-union shops, and they can fire anyone at any time as long as they follow their own company policies. Most of the 30 minute smoke breaks are done by management because the labor agreement dictates the break times and length and if they are violated the laborer gets fired.

Oops, didn't mean to rain on your lying rhetoric.

FORD, an AMERICAN car company is making it with no help from you and you begrudge them. Thinking about America's future I see.

Go figure, it clearly shows why GM is talking about leaving, no reason to stay in America too many people like zip hate them.

#20 | Posted by moneywar

you don't have a clue what you are talking about.

I am a stockholder in both GM and Ford. I have every intention of holding their feet to the fire, because i want to make a return on my investment. that's called business.

But I am not emotional on the issue, I am a realist. If I loose my investment money, it is my fault, not GM's.

Just because the management of GM is a bunch of incompetent fools, doesn't mean the unions are not. they are incompetent fools too. I believe GM made the pension and health care deals with the unions and both parties knew that eventually GM would default on them.

Ford's management is marginally less incompetent than GM in that they didn't get involved in hedge funds and credit default swaps etc... with the UAW's promised pension money.

If you are looking for someone to blame for GM leaving, just sling a dead cat in detroit and you'll hit one, because they work for many different companies.

But the biggest problem is people like you and how you are so ignorant and emotionally biased that they don't understand even the most basic business concepts.

Successful businesses with strong unions:

NFL
NBA
MLB
NHL

Not so successful businesses with strong unions:

Public Schools
Auto Industry
Steel Industry
Most of the Airline Industry (southwest does well)
Textile Industry
Manufacturing Industry

what was labor's "part of the bargain"?

Labor took huge pay cuts, agreed to stock for payment of healthcare and pensions and removed the things like unemployment pay for not working.

Accepting the stock was great because now it proves the labor has a vested interest in the companies success, which most people here assume is not the case.

"I'll leave the "choosing sides" to others. It is ideology that places them there. "

But isn't it realistic to point out both sides agreed to the bargain, and after one side fulfilled it's conditions, the other side wants to renege? Who's "ideology" puts them on the side of the welsher?

"what was labor's "part of the bargain"?"

To work x hours, at x pay with x conditions and x benefits.

Laborers worked the hours at the specified pay with the agreed-upon conditions. Management, over the years, chose larger pay and bonuses versus fully funding pension & health liabilities ("benefits") and instead shoved them forward to today. So now they believe their bad choices should exempt them from living up to their end of the bargain. And they've even got some folks blaming the workers for their massively idiotic choices.

We get it, Danforth. Management was stupid to agree to the union's ridiculous demands. That doesn't mean the union is blameless for making the demands in the first place. If I saw a retarded person who had a lot of money, asked them for all of it, and then they gave it to me and had to live on the street, it would be at least partially my fault that they live on the street.

#38 | Posted by JOE at 2009-05-12 05:35 PM | Reply | Flag

I think what you just described is illegal in most states, whereas Danforth's post describes something completely legal. Joe, if you enter into a contract and it ends up that, even though you did plenty of research, you made a dumb decision by entering into that contract, you are still on the hook. It isn't the other party's fault that what you thought would be a great deal didn't come to fruition.

Most telling is Joe needs to make his point by equating Detroit's management to the retarded.

"That doesn't mean the union is blameless for making the demands in the first place."

So is it Howard Stern's fault if XM/Sirius fails? Would it have been Stern's place to tell his bosses they couldn't afford his contract (provided the business goes belly up), or is it the business owners' responsibility to know what business model will work? And if the business takes off, does that remove Stern's responsibility to tell the owners what they can and cannot afford?

This isn't about union, it is about changes the management is making and it is working.

FORD's CEO is relatively new and is turning the company around. It is nice to see.

It is a sad state of affairs when we feel like praising a company (ford) for doing what a company is supposed to do.

We have grown so accustomed to corruption and unethical business practices, on all sides, that we have lost sight, and have no ability to discern the truth anymore.

The pundits push an unethical agenda down the unwashed masses throats and tells them it is good food. And in their ignorance, they believe them and gobble it up. You can see crystal clear evidence of that on this thread.

In the meantime, GM will not deny that it is making plans to move it's whole US operations overseas. In fact, they are making lot's of profit in china and South america. They are loosing money in America and Europe.

but don't worry, by then, you'll be able to buy a Fiat/Dodge, or as I am going to call it, A fodge.