R1234:
The preferred stock is down about the same as the common. You are correct that the upper echelon people get the preferred shares, but the only advantages are in voting rights, and dividends (if one were to figure in the dividends, the stock value would be down in the 65% range over the past 10 years, and not the 80% that my initial post sited; my mistake on that one). The other advantage in preferred shares would be if GM does go bankrupt (which actually is a possibility) the preferred shareholder get paid out from all GM's assets that are liquidized, while the common shareholders normally forfeit all value of the stock to pay off creditors. Hence the stock is worthless.

Many of the executives in a big company like GM, get all sorts of stock options, where they can exercise the options when the stock reaches a certain point. Many times they also have the option of converting preferred shares to common shares. All sorts of games go on in companies the size of GM. The only real people who have made money off GM stock, however; are your shorters and put option players. As doing that strategy lets you cash in when a stock declines in value.

TCB--what do you mean by "Wisconsin is a forced union state"?? I've never heard that term before.

Yes, Kiowamohican, common stock is down but what is GM's Preferred stock doing? I have no idea but it usually pays very much better than common stock and is the stock which is held by the upper eschelon and the monied people. Its common shares have been going down since 1982 and has really never recovered.

It is a sad day for all who's jobs are connected to the closing of the GM plant in Janesville. I have been reading all the rhetoric about the government officials and the corperate officers of GM and how could they do this to us. I have not heard or seen any offering by the UAW and its leadership. Where is a concession offer from this large union that represents auto workers across this nation? A slightly lower paying job per hour is better than no job at all!!!! A $10.00 per hour cut in pay per person at the plant would produce about $62 Million dollars in savings per year for the plant in Janesville. Mulitply that by all the plants that GM operates and the company may again become profitable. I hope that the UAW leadership can become creative thinkers and make some innovative offers to GM management that can entice them to consider some alternatives.

R1234: Some good points, but you are wrong about GM shareholders reaping profits. GM has been operating HEAVILY in the red, and their stock is down almost 80% now, over a 10 year span (with no splits)! Talk about one of the worse investments one could possibly be in. $1,000 invested 10 years ago, would now be worth about $220.
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It's easy to pass around the blame, but this is the combination of many factors at work. ALL the US auto makers are in MAJOR trouble. It would be no surprise to see one of them soon file bankruptcy (Ford has all ready come close). Just look at their quarterly financial statements if you don't believe me. ALL are HEAVILY in the red, and their future guidance looks very weak.

I would point out that the plant in Canada that GM slated to close along with Janesville has officials there offering up 250 million. So unless Doyle cuts his staff and the entire Wisconsin governing body, which would be no loss I may add, I don't see WI putting up that kind of cash. Lets face it, if the good workforce in Janesville and billions of dollars that this plant has generated in profits for GM over the years aren't enough, then GM can take their plant and their total lack of loyalty straight to bankruptcy. It's a shame bad management at the corporate level means more job losses for the loyal Janesville GM plant and its employees. I'll be shifting my lifelong loyalty to GM products to a better managed company.

I whole-heartedly agree with R1234 100%! It's also important to keep in mind that this plant closing has a trickle-down effect. There are smaller manufacturing facilities (in Janesville), for example Leer, who this is going to have a detrimentral impact on. GM is only the first plant to be laying employees off and closing it's doors. Eventually there will be many others doing the same. Where does that leave this community that once thrived? How long is it going to take us to recover from this huge loss to Janesville? Even more sickening, all we can do is sit back and watch it happen. Our government, or lack thereof, won't do a thing to help us out. They're more concerned about sending business overseas. Eventually none of us will be employed....unless we move to China!

Just because the plant closes, doesn't mean GM doesn't own it anymore. Can't tear down someone else's property without compensation...

Now is the time to put a lot of pressure on the government and elected officials. That is if they want to keep THEIR jobs. In addition, I have felt for years that since I don't get to approve my pay raise elected officials shouldn't be able to raise theirs either. If they want a pay hike it should be a referendum and let their 'employers' make that decision. Heck, if I could just decide to give myself a raise, I'd be livin on high hog!

Well put R1234

After reading the blogs regarding the GM closing and listening to everyone, including our Governor and his vow to work with GM to try to get them to stay, my opinions differ and so I choose to make my remarks here....right under Governor Doyle's nose.

GM has been posturing for years to get out of America. GM and other large companies rape the US taxpayer and its workforce taking charity in the form of tax benefits for the companies and loopholes so that they can function with great profits for their shareholders as well as obscene salaries for their CEO's who work from day one to undercut the rank and file employee to boost their bottom line. GM and other industries will squat when the time is right and leave communities in dire straights unable to recover for years.

It has been done by GM in many communities across this nation. Where were Governor Thompson and Governor Doyle? Are they blind to national financial news?

Our Governors have neglected all of Wisconsin with the exception of Madison. When new, high paying jobs come into Wisconsin, they are located in Madison. Madison is the showcase for Wisconsin. In the last 15 years, nothing major has been brought to Janesville or Rock County. Rock is bleeding more each day as more companies close or cut back. As all this bleeding has taken place, Janesville has been preoccupied with parks and recreational facilities and they have not been preparing for the future. I-90 is perfect for development of a technological and research corridor for the state of Wisconsin. We have an active University engaged in research which could attract many related businesses in the research field of medicine and genetics, gerontology, etc. but it is all housed in Madison. Madison is not being developed south but in other directions. We could have a thriving and bustling economy if it would spread south along I-90 straight to the WI-IL border, thereby, strengthening all the communities south of Madison. It's time for the Governor to share the wealth and spread it all around. We all pay taxes to the State of Wisconsin but Madison appears to benefit most. It is sad to see Janesville decline and there is no time to waste pandering to the likes of GM. Our future is here now and we must demand value from our Governor and our representatives for our tax dollar and our vote more now than ever before; we do have power with our votes. As we lose jobs, maybe our elected officials should lose theirs, or take a pay cut, or maybe even have their benefits cut. What a concept!!!

Gov Doyle:

Symbolism over substance. The choice to close or to keep open the Janesville plant resides in Detroit, not madison. However, in order to pander for votes for another term, this looks good. At the end of the day, the state will not go out of business, but GM is gone.

How ironic would it be if Doyle took a trip to Japan and convinced Toyota to buy the GM property and build non union cars in Janesville. Wait-----Wisconsin is a forced union state, Toyota will not relocate to Janesville even if GM gave the land to Toyota.

Hopefully the UAW will deliver the vote to Obama, maybe Obama will come back and give a speech telling those about to lose their jobs that everything will be Okay. A nice speech will help, wont it?

Long time gone, I understand your sentiment and anger at GM for this move, and to take down the building, but wait a minute...

The GM plant location at the crossroads of two active rail lines gives it a leg up on the new direction of US transportation...trains. Due to peak oil and global warming, both freight and passenger rail are making a comeback since they are far more efficient than road-based transport. Why not investigate the possibility of using the plant to manufacture rail equipment? The plant location at a rail crossroads means that the infrastructure is there for shipping out the equipment. Why waste this great opportunity? And we can keep the manufacturing here!

Forget the "american made" motto....and beg another car company to move into the GM plant in Janesvill. That is the only way I can see Doyle helping....what else can he do? Bullying won't work....GM can do what they want to unfortuneately. Most cars are heinz 57 anyway....American Made doesn't exist anymore anyway.

With minimal effort one can look back and find
which plants were the most vuenerable.
Want to guess which plant top those lists?
GM is not going to change its mind.I would hope
Doyle and others are already starting to put all there efforts in helping the people that work there.
Because as the May sales went for the autos that are made here,theres no way this plant is going to be open until 2010.

I heard the State did know of this and GM's plans to potentially build a NEW plant in Southern Wisconsin sine the current site is "unretoolable". My understanding is that the State was unwilling to negotiate price, tax, etc.., with GM corporate. Of course this is all second hand information, but I trust the Union source who told me.

Governor Doyle, call Governor Tommy, and read the playbook for keeping Chrysler in my area, Kenosha. It does not work. Do it differently.
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Make plans to bulldoze GM now - don't leave it as a scar on the community like Kenosha did.
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When the last assembler walks out the plant doors either in 2009 or 2010, the state should have jackhammers, sledges and crowbars waiting and those 2,600 good men and women should march right back in and take the building down.
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Make way for a new future.