It begs the questions…

As reported by The WSJ and Bloomberg News if GMAC can identify ways to cut $1 BILLION from its overhead by year end why is there so much fat in this company? Why is the USA loaning them money?

A billion dollars. In less than 8 months. Cut. More efficient. Less wasteful. Better. More streamlined. On target.

Right.

This kind of makes sense when you know that Cerberus owns half of GMAC. Bob Nardelli, a Cerberus partner, was chosen by Cerberus to run Chrysler. In 2006 Toyota overtook Chrysler at #3 by selling small cars. At the same time Chrysler was losing market share Nardelli green lighted the idea to create a massive, less fuel efficient luxury RAM truck for 2008.

A luxury pickup.

I have never seen anyone arrive at the symphony in a loaded RAM pickup truck. Bob, does your wife drive the loaded RAM pickup? I didn’t think so.

Nardelli also said live on CNBC that FIAT would be assuming Chrysler debt in relative percentages to the value of their participation in the partnership. Within hours FIAT categorically denied agreeing to assume any Chrysler debt. Nardelli, as CEO, did not even know the specifics of a partnership which was the lifeblood of his company’s survival and let everyone know. Good job, Cerberus. Good job, Bob.

Aren’t some of the other Cerberus partners not active in the GMAC deal asking “There’s a BILLION dollars you guys can cut and you haven’t seen this before now??”

Adventure capital.

Mars out.

Unemployed, part 2…

I mentioned in an earlier post that collecting unemployment benefits is not a goal of mine. Since that entry I thought of the reality – the facts as they are, of the situation. 

Due to actions others may judge to be dysfunction, incompetence or simple passive management I was laid-off BEFORE my resignation could take effect.

 There it is. 

It stands by itself.

 The emails sent announcing my resignation were never acknowledged so I wondered if  CN took them seriously. I sent another email to two responsible parties. Neither one of these guys acknowledged the second email nor did they think it would be a good idea to walk less than 15 steps to MK’s office to share this information with the Senior Project Manager who was working on his own strategy to reduce the overhead on his project. So, on the appointed Thursday, the Sr. Project Manager gave me my lay-off counseling and the deed was done. I was asked to leave the jobsite – before my resignation took effect. I asked MK if anyone told him of my pending resignation and he said “No, this is the first I’ve heard about it”… Amazing. 6 people in an office and three don’t communicate on a matter of resignation involving 25% of field management. In 24 hours the lay-off would be moot. Timing and communication are everything.

 Like I said before, I have savings and other opportunities. A couple are in the fruitful stage. I have a part-time position starting next week and I started up my property maintenance business. I also have two or three weeks without employment so I filed a claim. On a related note I have sympathy for anyone who must depend solely on unemployment benefits to tide them over. The amounts are small.

 I expect a challenge based on excuses, rationalizations and pretzel logic from the company – we’ll see.

 Mars out.