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G.M. CEO: "G.M. Will be a Survivor." -- But Retirees May Not
by David Sassoon - Jul 16th, 2008
Here's the full, astonishing quote out of the mouth of Rick Wagoner, the chief of General Motors:
I’m determined and highly confident that G.M. will be a survivor.
That ought to send shivers up every stockholder's spine. A survivor, merely? My how the mighty are falling because of a short-sighted approach to energy and climate realities.
If you read the full story in the NY Times, you also get to meet William Parker, a 74-year-old G.M. retiree. He just learned that G.M. is cutting off his health benefits in its effort to survive.
Wagoner may be confident that G.M. will be a survivor, but Mr. Parker was just handed a death sentence. He won't be able to afford the cancer drug that is keeping him alive.
The generous health plans for retirees has long been considered a pillar of the benefit system at G.M.
Not anymore, now that the company is spending $1 billion a month from its cash reserves. G.M. has about $24 billion in its piggy bank.
Analysts said they were left with more questions than answers about how G.M. would adapt to consumers’ rapid shift from large vehicles to smaller, more fuel-efficient cars.
It's not like nobody saw this coming, and puts into relief the efforts by Johnson's EPA, the White House, Representative John Dingell, and the rest of the US auto industry to fight tighter fuel economy standards. Looks like they were wrong.
Dead wrong.
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Grandpa retired in 1982.
Grandpa retired in 1982. Died in 1997 with a melonoma ill just 2 months. Went into hospice, medicare paid expenses.
I am a surviving widow 84 yrs old. We took the surviving spousal option with less than maximum benefits. Paid a monthly fee for insurance all these years. Paid for extended care, Paid for nursing home care if I need it. Seldom collected anything on insurance. Deductible too high. What happens now? Its just more than I want to think about.
We were loyal GM Employees, Kept a new car for years. After Grandpa Bob died I couldn't afford to keep it up. Besides that they stopped making the car I liked. (Oldsmobile). We have 5 children. All loyal GM buyers.
I am tired of always making excuses for GM. They have squandered so many opportunities. Spent decades on electric cars, never put anything into production. Let Magnequench get away. Spent decades on batteries. Touted Hydrogen powered cars. What do they have to show for it?
Wish they would act like they are at war. Get rid of all upper management and start fresh.
Grandma Kay
GM's Plan to Win
Another tired - same old thing plan - as soon as my lease runs out I will run not walk to a Prius. I too, gave countless hours (unpaid) to GM. Benefits are and were the most important aspect of spending 35 plus years with the company. GM is doing what they've always done and they will get what they always get. After tolerating years of discriminatory activities, first sexual harrassment before it was illegal, gender discrimination throughout the 35 years and during the last ten blatant age discrimination. I hope the executives someday face a lengthy illness, have weak bodies but a total clear mind and even though they will have health care and be in a "nice" place may they hear the cries, screams and moans of all the people they have damaged.
GM's decisionmaking
I'm a GM retiree. Last night I added up the amount the "plan paid" and our copays for drugs for a year. It's about $8500. My husband has aggressive prostate cancer and another chronic disease requiring medication 4 times daily. I was a secretary, never made more than $40k/yr., hired after the advent of "mid-point salary administration." I wish I had the money for the "free" hours I gave to GM.
Since I retired, we have bought two Saturns, both used (a 2000-made in Spring Hill and a 2002-made in Wilmington), because (1) these cars which each get 30 mpg or more were no longer being built and (2) we couldn't afford new cars. If these cars had been properly marketed, I am sure other "little people" would have bought them in greater numbers, and perhaps, just perhaps, they might still be coming off the line, and things might be different now. There are plenty of people like us who never were interested in SUVs.
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