GM retirees may retaliate against GM dropping retirement programs

GM may suffer future sales backlash from thousands of retirees

Many of the 118,000 salaried retirees are bitterly stating they will never buy another GM vehicle; and anyone who discounts the effects their numbers can have on sales should reconsider.

GM retirees have been loyal GM fans, often purchasing more than one car, not to mention convincing others in their family and friend networks to buy as well. Like the GM reitrement plan, though, those days may be over.

Call it what you will, but in recent emails both the General Motors Retiree Association (GMRA) and the National Retiree Legislative Network (NRLN) consider the ending of the GM retirement fund a definite breach in loyalty. No doubt it is a throwing under the bus; and if GM can do this to its own, then imagine what might happen to customers over time.

For sure, it’s not a great image message for GM. You might even justify the move by General Motors Company (NYSE: GM) as financially prudent. Nonetheless, this financial reengineering has still soured the attitudes of a majority of GM retirees who have been sending emails to the retiree organizations in a grass roots effort to even protest before the government. Reason is, this kind of financial re-engineering will also create more pension risks to the remaining pension plans by eliminating PBGC protections. It will also significantly reduce PBGC premium contributions from companies.

Fact is, Ford offered lump sum buyouts as well. However, Ford did not take the low road by palming the entire pension plan into an annuity-based entity like Prudential. Even Chrysler has stated that it has no intention of ending its pension plan for salaried retirees.

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Comments

Thank you so much for portraying my thoughts exactly. It boggles my mind that GM did not see this coming or choose to ignore these repercussions. What were they thinking or NOT! To me it is as clear as the nose on my face as to what the outcome of this action. GM does not understand human nature, taking away a man's financial stability or put it at future risk is not going to make that person run out and buy their products; Loyalty returns loyalty. It makes me very angry to see such an un-calculated move by a company that I respected for many years. Loyal GM retiree, at least until I see what develops.
Union members do switch brands. My dad was a lifelong union member in the aircraft and turbine industry. GM angered him in the '70s with product failures. After only driving Chevy products for decades he switched to Toyota and Honda and has owned about 9 of them since then. GM's union guys have one thing that is unusual. After GM crashed and burned our government gave them part of the company.
GM lost my business when they started playing it up to homo's!
Meanwhile, the rest of America has already been screwed out of our retirement. Welcome to the club, GM retirees. May Government Motors die a slow, painful death.
don't forget about all the taxpayers they're stabbing in the back for billions while they're enjoying their taxfree profits.
Another bullshit story written by someone sitting behind a desk who thinks life is not fair and has to vent his hatred at someone or something. This deal with GM and it's retirees could be a good thing! Before condemning it, wait and find out the finer details.
If this was affecting you, you would have a completely different opinion. That is what is wrong with this country these days; everybody is just for themselves and don't care what actions affect others that worked hard all their life. You should take a look in the mirror buddy. The guy that wrote this article is stating what is happening to over 100,000 people that promises were made to for over 30 years of their career, I'm sure that you don't care because it in not affecting you. you you you .
Thank you. Better written by you than me. Yes, other American can and will be affected by this action, as it WILL catch on and spread. And a note to the first Anonymous - I do have the details; far more than you realize. I have to admit, it's hard determining one Anonymous from another, except by the flair of the comment itself.
Dear Editor: Can you please set up some type of opinion pole on this topic: "GM may suffer future sales backlash from thousands of retirees" Will you continue to purchase and/or lease GM products in North America if the Salary Retirees are forced out of their GM Salary Pension Plan? Yes No
Great Idea! I'll submit it to my editor.
The Canadian Salaried Retirees have not been asked to participate in a buyout program.
That's probably because the Canadian government wouldn't put up with it; but you tell me. I seriously would like to know.
I remember someone saying busch might be a good thing dont knock him just wait and see what happens and this is what happened to me gas,food,electric and water bills tripled and work dropped from 40+hrs a week to 24hrs most weeks less on others and all so corperations could make more profits. [proof] $76.00 a barrel for oil before busch gas was $1.65 a gallon now $3.15 a gallon and with ethanol added its partly watered down profits goverment motors is looking to make as much tax free profits as they can and they don't care about the little guys that got them were they are or the tax payers.
To the retirees bad feelings add current: SAAB owners Pontiac owmers Oldsmobile owners Hummer Owners Saturn Owners People who own and have owned these brands are not rich peoeple. For GM to orpahn them is really poor . Just compare that to what Ford did with VOLVO which is thriving. I rather buy Korean, Japanese, Chisese. Outer Mogolian cars than GM crap.
it's been 110'f here this weekend and on my monday morning 40 mile commute to work the side of the interstate looked like a gm parking lot 1 every 2 miles or so and most looked fairly new [ to bad all that bailout money went to a supercharged vette and camaro] oh and one 90's model dodge would've made a awsome ford commercial just saying people might be better off driving something they dont have to pay to build and then pay for to own that ends up broken down .
That's BS! I don't believe a word of what you just wrote. You are just another jealous jerk who hates people who work for a living! I drive 200 miles a day round trip to work. Five days a week. In Alabama. What do I see on the side of the road? Toyotas and VW's. Sure there is the occasional domestic car, but no more than the imports. Keep supporting the foreign economies.
I,m not a salaried GM employee but a hourly union employee and have two years too retirement. Ive already made up my mind that I have purchased my last GM product which was done in '06. Ive been loyal the the one who butters my bread, but they no longer butter it the right way. I think I see another auto brand in my driveway in the future. I wish, I could say good luck GM but they don't care about me or their employs; so I find myself not caring about GM's future. So who is the selfish one here? Me? or GM.
You couldn't convince me GM was bad until a year ago, Lost all stock. Thank you Obama. Pay towards insurance, dental and lost cola. Half of retirement goes out in medical. And keep paying those tier two people low wages. They go to work not knowing if they will have a job down the road much less work side by side doing the same job as another making 3 times as much money. There is no way they can afford a home much less a new car. And this is Obama running his first company on the sidelines. If they go under, I will get state insurance (excellent) and food stamps, plus and what ever programs they decide to create to get elected. They never cancel a program so no worries but I will have more money. Seriously I bought my last new car a year ago and if I had known they were going to take away retirees cola, I wouldn't have bought a GM vehicle. They could of paid cola seeing as how they don't pay any taxes but hey, he saved the auto industry.

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