GM Will Spend $109 Million To Preserve 96 Michigan Jobs

Tyler Durden's picture

And so we get another example of government efficiency at work. The still taxpayer funded General Motors has just announced it will spend $109 million to keep and add 96 jobs. This amounts to $1.135 million per employee. That's right, a carmaker is about to spend on a per worker basis, roughly what an average Goldman worker makes in base+bonus... in the hub of wage expansion, Michigan.

From Bloomberg:

General Motors will invest $109 million in its operations in Flint and Bay City , Mich., to support engine production for current and future fuel-efficient small cars produced for the U.S. market. The investment will protect or add 96 jobs at the two sites.

"This investment marks the second major increase in engine and engine component output in less than six months - a sign that GM is moving quickly to meet growing demand for more fuel-efficient cars," said Terri Burden, Flint Engine Operations plant manager.

In November 2010, GM announced plans to invest $151 million and protect 143 jobs at the Flint and Bay City plants. The latest investment is part of a $2 billion investment to create or retain more than 4,000 hourly and salaried jobs at 17 facilities in eight states.

"This additional GM investment in the Ecotec engine is a testament to all the UAW Local 599 members who have worked so hard to make the 1.4-liter engine America's first choice," said Terry Everman, chairman of UAW Local 599 at Flint Engine Operations.

Of the $109 million, $84 million will be used at Flint to increase 1.4-liter engine capacity. Bay City's investment of $25 million is for connecting rods and camshafts used in the engine.

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TheTmfreak's picture

Kind of like that white house temporary job initiative?

nope-1004's picture

Clearly the average Goldman employee is overpaid.

 

TheTmfreak's picture

Are they? They sure can accumulate a hell of a lot of money (private and public) for their company...

TruthInSunshine's picture

SCORECARD OF TRUTH:

Actual Unemployment Rate = 22% (see John Williams SGS *Shadow Government Statistics* alternative unemployment rate reflecting methodology that includes "long-term discouraged workers" that the Bureau of Labor Statistics in 1994 under the Clinton Administration redefined away from those considered "unemployed."
http://www.shadowstats.com)

Real Inflation Rate = 8.8% Annualized (with a head of steam baked into the cake to possibly accelerate this significantly by Q3)

Government Net Transfer Payments = 51% of U.S. Population

1 out of 7 Americans on SNAP (aka Food Stamps)

U.S. Deficit (Annual Revenues - Expenditures) = -1.9 Trillion

U.S. Debt = Officially stated as 15 Trillion as of 2011 (actual is 56 Trillion to 202 Trillion; reference David M. Walker & Laurence Kotlikoff) - U.S. Is Bankrupt

U.S. Government Spending as % Component of U.S. GDP at Present = Approx. 1.6% (so if GDP is stated as 3.2%, U.S. 'Organic' GDP is only rising at 1.6%)

Approximate % of GDP Growth that is Nominal & Attributable to Inflation = 1.1% (so that 'Organic' 1.6% Growth in GDP is closer to 0.5% - not enough to stop further job losses and close to the point whereby we could start contracting again very soon)

 

You're Doing A Heckuva' Job, Bernank! (crushing consumption and organic economic & job growth while ratcheting inflation higher, all in one fell swoop)

nope-1004's picture

The current discussion about rising food prices and the fears of inflation are largely overstated.  I attribute increases in food prices in developing nations a result of the people in those nations having more sophisticated diets.

 

- Benocide

 

 

MisterAmbassador's picture

LMAO.

Tyler, who seriously gives a phuck anymore?

It's all over.

Tyler, do you happen to actually look like 1990s Brad Pitt?  If so, and if I were gay, I'd totally hit that...

BTW, Tyler is just part of my delusion, everyone.  Just wait until I shoot myself in the cheek...

/snorts anotha line of coke/

Gonna be a hell of a weekend, my ZeroHedge anonymous friends who know me better than most...  A hell of a weekend, indeed.

"If you erase the debt record, we all go back to zero..."

If I die, the Big Bang just happens again...

Have a good weekend, everyone.  I know I will.  Flag this as junk to make yourselves feel better.

tmosley's picture

I thought your codename was "Duchess".  What gives, Mister Ambassador?

TheAkashicRecord's picture

I use Archer as a litmus test for taste.  

-Michelle-'s picture

Strangely enough, this is pretty much how I feel at this point.  Minus the gay and the coke.

aint no fortunate son's picture

I guess we know who picked up the tab at Tryst

LawsofPhysics's picture

Fuck GM, the taxpayers want their money back.

TheTmfreak's picture

Taxpayers (non GM) never wanted tax dollars to go there in the first place.

hedgeless_horseman's picture

More saving or creating jobs...

Allied Bank (new bailed-out GMAC) is now a heavy supporter of National Public Radio, helping to perpetuate the "journalistic" tradition of NPR reporters interviewing other NPR reporters as "experts" on any and all topics.

TheTmfreak's picture

While I always knew NPR was awful there was one story that finally did it in for me. The "experts" they bring are just awesome...

This one random story about the civil war. This woman who was an "expert" on civil war history stated that "only blacks were slaves" during that time. I did what anybody with common fucking sense did. (Call my congressman and demand these people be put under?) No, I turned it off.

tmosley's picture

Indentured servitude had long since been disappeared by the time of the Civil War, though it was still legal until the end of the 1800's.

Or were you talking about Indians, or other nations, or what?

TheTmfreak's picture

Oh i'm definitely not talking about indentured servitude. Exactly what you're saying. Literally what that woman said was "blacks were the only slaves." Which is a flat out false statement. It certainly reinforced to never assume anybody is an "expert." I also learned that very much later in life, when I was able to take the reins and be a somewhat "decision maker." Thats when i found out everybody is just making the shit up as they go.

hedgeless_horseman's picture

It used to be the case that reporters would actually leave the studio to interview witnesses, experts, and men and women on the streets.  Now, on NPR and most other MSM programs, they sit at a computer and interview their fellow "journalists" who give their "expert opinions" which we are supposed to believe to be the facts.

 

 

TheTmfreak's picture

And these dogmatic fools like to talk about how NPR actually brings news rather than just "celebrity gossip" like they claim other news stations do. (I'm not defending mainstream news).

Meanwhile they run stories like lets take a look at "Bill Clinton" a little 6 year old boy in Kenya, or some stupid bullshit like that. That is NOT fucking news. They do that all the time. I remember when they were running this "Story" and it was such a give a fuck less "story." There is hardly any defending this organization, any more than the rest. I'm not going to go around and just repeat the traditional line "Their LIBERAL LIBERAL LIBERAL." I'll just say they're a bunch of dumbasses and hypocrits.

hbjork1's picture

tmosley,

+1.  I think your posting is completely correct.  One group of my forebearers had been pre-Civil War southerners and a great grandfather had lost 3 brothers as soldiers for Confederacy.  I was raised in the northern edge of the "South" with a number of family friends who could talk about what "grandaddy did during the Civil War". 

I had the feeling that the "Trail of Tears" was avoided because it was embarrassing but questions surrounding the civil war were openly discussed. 

I am pretty sure that any "white" servitude was voluentary, although there were many "shavecroppers" who were poorly paid.    

williambanzai7's picture

I read somewhere today that global vehicle ownership peaked 5 years ago.

Dr. No's picture

I bet the same could be said of houses.

sun tzu's picture

I doubt it. China has just surpassed the US in auto sales in the past few years. More people in India, Africa, South America, and Seatheast Asia are buying cars. It might have peaked in Europe and North America, but the rest of the world is just getting started.

JR's picture

General Motors is a post office that makes cars.

GetZeeGold's picture

 

Lottery jobs bitchez!

 

.....and no....you can't just have the million dollars....nice try.

 

 

hedgeless_horseman's picture

"This additional GM investment...is a testament to all the UAW Local 599 members who have worked so hard."

I see the clouds that move across the sky
I see the wind that moves the clouds away
It moves the clouds over by the building
I pick the building that I want to live in

I smell the pine trees and the peaches in the woods
I see the pinecones that fall by the highway
That's the highway that goes to the building
I pick the building that I want to live in

It's over there, it's over there
My building has every convenience
It's gonna make life easy for me
It's gonna be easy to get things done
I will relax alone with my loved ones

Loved ones, loved ones visit the building,
take the highway, park and come up and see me
I'll be working, working but if you come visit
I'll put down what I'm doing, my friends are important

Don't you worry 'bout me
I wouldn't worry about me
Don't you worry 'bout me
Don't you worry 'bout me

I see the states, across this big nation
I see the laws made in Washington, D.C.
I think of the ones I consider my favorites
I think of the people that are working for me

Some civil servants are just like my loved ones
They work so hard and they try to be strong
I'm a lucky guy to live in my building
They own the buildings to help them along

It's over there, it's over there
My building has every convenience
It's gonna make life easy for me
It's gonna be easy to get things done
I will relax along with my loved ones

Loved ones, loved ones visit the building
Take the highway, park and come up and see me
I'll be working, working but if you come visit
I'll put down what I'm doing, my friends are important

I wouldn't worry 'bout
I wouldn't worry about me
Don't you worry 'bout me
Don't you worry 'bout ME...

http://www.youtube.com/watch?v=s9CjnDufqeQ&feature=related

Mercury's picture

Now that's winning the future!

tawdzilla's picture

The gov't stake in GM is only transitory

Mercury's picture

Anyone with a Bloomberg (I'm sure it can be reproduced elsewhere) can see that entire transitory portfolio in all it's glory here:

PHDC REV C 177622 [GO]

lizzy36's picture

The Black Plague was only transitory.

InconvenientCounterParty's picture

genus homo sapien is transitory.

 

Freddie's picture

+1

Barrons now is pimping every week for Obama, GM and GE.    Based on Barrons analysis - you would think GM is Amazon, Apple, Google and Chiptolte.  The must own stock.  Incredible.

nobusiness's picture

At least that explains why the Michigan Survey was up

Sophist Economicus's picture

Mystery Bud Lite drinkers at Tryst solved too!

The Bud lites were for a couple of the union hall boys that tagged along with the politicos and UAW honchos that arranged this assine deal!

 

Those UAW guys, always looking out for the rank-and-file

Atomizer's picture

Change You Can Believe In

Hondo's picture

I'd never ever buy a GM car.....never have never will.

duo's picture

Exactly.  It's not in my economic interest to buy a product where the profits are used to buy politicians and support unions who have sworn to destroy my standard of living.

TheTmfreak's picture

I have been looking around leisurely for a good deal on a Diesel 4x4 truck so for shits and giggles I looked at buying a new one from Ford (F250) and GM (i would never buy from them but thought i'd check).

Sure enough the exact same truck at GMC was like 2 or 3k cheaper than Ford. Wonder how thats possible....

SheepDog-One's picture

With full taxpayer funding, anything is possible.

TheTmfreak's picture

So said the Soviet Union...

GetZeeGold's picture

 

So said the Soviet Union...

 

SEIU.....concurs.

 

 

Maos Dog's picture

there are good deals to be had on f250's if you look at used fleet vehicle sales. Yes, they have crazy mileage for their age, but they are well maintained. Start with Ebay and Enterprise

TheTmfreak's picture

I've looked at other places. I've seen some great deals. There is no doubt about it that I'll be buying an F250. I don't think i can bring myself to pay for a new vehicle for what those cost. I bought my current car with some serious discounts. (About 6k off the sticker price). I doubt I'd be able to get even close to that on the truck.

I've seen some that are like 70k miles for 18k. Not a bad price if you ask me.

duo's picture

ditto for GE, Monsanto, etc.

riley martini's picture

  Only the banksters should be given free money to buy politicians, all wealth should flow in one direction not. Nice post let me guess a ditto head or a Tea Partier who never stood up and fought for a living wage . Now aren't they bitter the Tea Partiers will be led to lower wages and more bitterness.