GM is talking strong steps to ensure the success of the company. Culp needs to grow a pair and follow the lead of Barra. And not just in the US, GE needs to reduce headcount worldwide and do it with "urgency"!!! Quit hiring washed up useless ex-execs and do something that will actually be helpful to GE's future before it's to late.
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Trian is a highly engaged shareowner, bringing a private equity mindset to the public markets (so says their advertising campaign) GE has had enough of these bean counter know-it-all that actually know-nothing about the business they are being parasitic to. Ed has been completely ineffective since his grand entrance to the board. Even the bean counters would have to agree his numbers are horrible. It’s time to purge all of these financial jargon junkies and return product experts and engineers to lead design and development of products. The upper senior executives enjoy constant reorganization. Let the bottom level workers create the next and final reorganization from the bottom up. Most of the leadership positions could be purged immediately without being missed by anyone. In fact, new leaders seem to appear every week and are not known to anyone. They are just another overpaid leader of some make-believe role. I wish leaders were elected by employees. Then maybe they would have real ownership in their job for once.
"Increasing interest rates will also significantly increase the pension fund value."
Um... no. That's not how bonds work. When interest rates go up then bond prices go down. That means GE needs to put more money in the pension to cover the loses. New money invested in bonds will get a higher return but that will be after all the losses. Bonds have lost about 7% in value in the past six months. https://stockcharts.com/h-sc/ui?s=EDV
No offense for the arrogant ...but you were booted off the Dow and replaced by Walgreens and your comment that GM is still behind GE..Yes.... But that's not saying much now is it? A d--g store replaced GE...now that's Karma....
@2wdm... Sounds like you work at R&D!!
People are not the core of the business, they ARE the business. In my division, after the second set of layoffs... The attrition soon became greater than the layoffs combined. We went from being top heavy to understaffed with the remaining top performers leaving(because they could). HR started scrambling to keep people, giving out raises in some cases. Now we are trying to hire for specific needs, except no one seems very interested unless they are at the very start of their career, or the end. I'm doing the job of 3+ people from 2 years ago. That's the reality of the business today. I'm happy to have a job, but I'm not going to kill myself doing it. I do the most I can, and whatever I can't do today, just has to wait until tomorrow.
It is no secret that the company is top heavy. Someday, someone will take action.
@1crm no...debt, including pension shortfall, significantly exceeds net assets. Parts of GE, however, are making money which SHOULD help deleverage. Increasing interest rates will also significantly increase the pension fund value. The overall outlook is still poor however. GE has enough cash to survive 2019 but will need major changes (both internally and in the Power Generation market) to survive beyond that.
If GE sold all of their assets could they: 1) pay down all of their debt, and 2) meet their pension obligations?
I meant alphabetically
What makes you think Culp won't do much of GM is doing...closing plants, cutting staff by 15% and execs by 25%? Culp has been in the role less than 2 months. Look for his big swings early next year, which is what he told the investors during the earnings call.
GM is a joke dude. They went belly-up and had to be saved by the taxpayers. DO NOT follow GM thanks.
No. GM will always follow GE.