The canoe race--apocryphal story from the internet

A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people paddling and 1 person steering, while the American team had 7 people steering and 2 people paddling. Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were paddling.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the paddling team's management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people paddling the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the paddlers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices, and bonuses. The pension program was trimmed to 'equal the competition' and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid off one paddler, halted development of a new canoe, sold all the paddles, and cancelled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated paddler was unable to even finish the race (having no paddles), so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India.

Sadly, the End.

Here's something else to think about: GM has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results:

TOYOTA makes 4 billion in profits while GM racks up 9 billion in losses.GM folks are still scratching their heads, and collecting bonuses...

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY

The Volt vs. the Cruze

“The $40,000 Volt is basically a $17,000 Cruze - with a 500 lb., 25-mile range, eight-hour-to-charge battery. Which is toxic when spent - and costs somewhere between $8,000 and$15,000 to replace. . .

We the Taxpayers own 26% of GM’s stock - and are poised to lose more than $40 billion on the auto bailout.

In no small part because GM - the company in which we are conscripted investors - is wasting tens of millions - and the Feds billions more - tilting at Volt windmills.”   Seton Motley

More on the auto bailout

"U.S. Treasury Department boosted its estimate of government losses in the $85 billion auto bailout by $170 million.

In the government's latest report to Congress this month, the Treasury upped its estimate to $23.77 billion, up from $23.6 billion.

Last fall, the government dramatically boosted its forecast of losses on the rescues of General Motors Co., Chrysler Group LLC and their finance units from $14 billion to $23.6 billion.

Much of the increase in losses is due to the sharp decline of GM's stock price over the last six months.

GM was trading at noon today at $24.24. It's down 35 percent over its 52-week-high of $37.23, but the Detroit automaker has rebounded from a low set last year of $19.05.

The Treasury, [that's us, folks] which initially held a 61 percent majority stake in GM, now holds a 26.5 percent share, or 500 million shares in GM. To break even, the government would need to average $53 per share for its remaining stake."

Detroit News

Obama is lying to you about GM

The Obama administration, and its media backers, have seized upon news that General Motors made a $3.2 billion profit in the first quarter of 2011 as proof positive that its auto bailout is a success. President Obama is so buoyed that he is reportedly planning to make the bailout a major part of his reelection campaign. . .

For starters, included in the $3.2 billion figure is the net $1.5 billion that the company generated from the one-time sale of Delphi, its auto parts supplier, and Ally Financial, its financial arm. Subtract that, and its performance looks much less impressive, especially compared to its rival Ford that really didn’t receive a dime from taxpayers yet made $2.6 billion last quarter—or nearly a billion more than GM. . .

GM got Uncle Sam’s special bankruptcy package that allows it write off up to $45 billion of old losses going forward. That puts its total bailout at up to $75 billion. Even that’s not all. The Treasury gave GM $10 billion of the $60 billion as a loan; the rest was through the purchase of equity.

The equity means two things: 1) GM has zero interest payments. Ford, by contrast, had to pay $251 million in debt-service costs. Despite this, GM’s real per vehicle margin was over $1,000 less than Ford’s, thanks to the heavy incentives it was forced to give buyers. 2) Taxpayers have no guaranteed return as they would have with a loan. Therefore, market valuation of GM’s stock will determine what they will recover. They got back $20 billion when the Treasury sold half of its equity when GM floated its first post-bankruptcy IPO in December. But that still leaves a $30 billion shortfall (excluding the $45 billion tax break). . . GM’s labor costs are still too high . . . But United Auto Workers President Bob King has declared that workers have already sacrificed enough to keep GM solvent and now expect givebacks.

General Motors will never repay taxpayers

Did You Know--General Motors

"There are some 13,000 porn films made in the United States generating near $100 billion per year. General Motors owns DirectTV, which distributes over 40 million streams of porn into American homes every month. AT&T and GM rake in approximately 80 percent of all porn dollars."

Read more: http://blogcritics.org/culture/article/charlie-sheen-or-the-empire-of1/page-2/#ixzz1L2nL23Gl

And now through the bail out, we the people own General Motors. The payback then, will be through porn profits?

NADA criticizes Obama over president's praise for GM dealer reinstatements? — Autoblog

If he reopens 661 dealerships he can put those on the plus side of the jobs ledger! Now, never you mind how does a dealer rebuild the trust with GM, his sales staff and his customers who have gone else where. Obama's never worked in the profit sector, so why would you expect him to have the answers?

"One of the most contentious aspects of General Motors' 2009 bankruptcy was the forced closing of 1,160 dealerships across the country. GM brass and the Obama Administration Task Force insisted that a smaller dealer body was necessary to make the Detroit, MI-based automaker viable again, while also helping to make the remaining dealers stronger. Opponents of dealer closings pointed to the thousands of dealership employees who would lose a job at a time when jobs are harder than ever to find. Dealers are also often among the most powerful small business owners in small towns, and that meant that the local congressmen were put in a tough spot, indeed."


NADA criticizes Obama over president's praise for GM dealer reinstatements? — Autoblog

GM to move jobs overseas--with our bailout money

"A simmering pot is reaching the boiling point. Did GM forget that Barack Obama owns them now? Obama doesn't like those overseas jobs. Obama doesn't care a fig about profits. His plan is to provide jobs and infinite union benefits. Who needs profits. Socialism doesn't need profits." Maggie's Notebook. I guess that's what you get when you don't read the small print.