GM Spirals the Drain (Part 2)

[KrazyHorse]

The proof of existence and uniqueness is left as an exercise for the reader.

[Lefty Scaevola]

"Just remember that you are unique, just like everyone else."

[Kuciwalker]

Originally posted by KrazyHorse
The proof of existence and uniqueness is left as an exercise for the reader.

I already understood the proof that it had to be prime, and your proof was constructive so we've got existence (well, after you add the fact that the integers modulo any prime forms a field). It's uniqueness up to isomorphism that I don't get

[KrazyHorse]

Explain how my proof was constructive.

[Kuciwalker]

From a field of size p^k you can get p^(k+1) by adding a single extension. Just an inversion of the fact that G is necessarily a subfield of F.

[KrazyHorse]

Originally posted by Kuciwalker
From a field of size p^k you can get p^(k+1) by adding a single extension. Just an inversion of the fact that G is necessarily a subfield of F.

I postulated the existence of F. My proof does not show that you can arbitrarily add extensions.

In order to do that you need to use splitting fields.

[KrazyHorse]

Unless I'm horribly mis-remembring my algebra.

Which is a possibility.

[KrazyHorse]

Wikipedia seems to back me up. They prove the nonexistence of non prime-power fields the way I do and then use splitting fields to construct field extensions to Z/pZ

[Vanguard]

One final point about wages and auto production:

Wages are obviously not the main impediment to profits in auto making. If they were, then auto production would be done in Bangladesh, where the wage is fifty cents an hour.

The main reason that German and Japanese auto makers assemble cars in places like South Carolina is currency issues. By making car kits in Germany and shipping them to South Carolina for assembly, car makers can produce cars in either place, thereby exploiting the currency exchange regimes imposed by central banks. (Ultimately this lets them avoid the monetary discipline which the EU uses to maintain its high taxes)

There are additional factors of course: hefty tax breaks in South Carolina; it reduces the threat of protectionism; the "Made in USA" classification grants a number of benefits, provided the foreign automaker does enough work in the US to fulfill the legal requirements.

And yes, there is also slightly cheaper labor. But this cheaper labor is only available because South Carolina assembles cars. It does not "build" them. Most of the car's value is built elsewhere, in Germany or Japan.

The only reason it makes sense to ship car parts to South Carolina and assemble them there is because the car companies are exploiting the loopholes and tax subsidies to make profits.

But exploiting loopholes and subsidies is just another type of market inefficiency. And there is no reason to prefer one type of market inefficiency (loopholes) to another type(labor unions).

[DanS]

So the three companies submitted their plans today. GM says it needs $4 billion before the end of the year and $8 billion more through the end of '09. In addition, it requests a $6 billion line of credit, if the market doesn't recover.

Doesn't seem to make sense. With a burn rate of $4 billion a month, they will be out of cash by the end of February, unless it taps the contingent line of credit, in which case it will be out of cash by April.

[Asher]

They're also killing Pontiac (apparently):

GM would focus on four brands — Chevrolet, GMC, Buick and Cadillac. By 2012, the plan calls for 20,000 to 30,000 fewer workers, a reduction of nine facilities and 1,750 fewer dealers.

[Dinner]

Originally posted by DanS
So the three companies submitted their plans today. GM says it needs $4 billion before the end of the year and $8 billion more through the end of '09.

Doesn't seem to make sense. With a burn rate of $4 billion a month, they will be out of cash by the end of February.

What I've read is that it costs a lot of upfront money to close factories permanently but that once that upfront money is spent then costs go down. It's part of the union contract with severance pay and what not.

Even so it does seem like they've padded their estimate some what which makes sense. They start off asking for the moon and the stars knowing that the final deal will be lower then their original asking price.

[Arrian]

Originally posted by DanS
So the three companies submitted their plans today. GM says it needs $4 billion before the end of the year and $8 billion more through the end of '09. In addition, it requests a $6 billion line of credit, if the market doesn't recover.

Doesn't seem to make sense. With a burn rate of $4 billion a month, they will be out of cash by the end of February, unless it taps the contingent line of credit, in which case it will be out of cash by April.

It seems to me that the key is getting the first chunk of money, so you can then go back and ask for more later. The government, already having given the first batch of money is now invested in the whole thing and gives in.

-Arrian

[Dinner]

Originally posted by Asher
They're also killing Pontiac (apparently):

GM would focus on four brands — Chevrolet, GMC, Buick and Cadillac. By 2012, the plan calls for 20,000 to 30,000 fewer workers, a reduction of nine facilities and 1,750 fewer dealers.

No mention of Saturn, Hummer, or Saab either so it sounds like three or four brands will get the axe. I'm kind of curious why they'd keep GMC around as anything but a maker of commercial trucks since GMC's regular line up of trucks and SUVs are all just Chevy knock offs.

[DanS]

Arrian: Yes, the AIG scenario.