GDX to close in Wabash, lay off over 700

GDX to close in Wabash, lay off over 700

There are 38 comments on the The Indianapolis Star story from Oct 22, 2007, titled GDX to close in Wabash, lay off over 700. In it, The Indianapolis Star reports that:

GDX Automotive, Wabash County's second largest employer, will close on or about Nov.

Join the discussion below, or Read more at The Indianapolis Star.

First Prev
of 2
Next Last
Truth Out

Demotte, IN

#27 Oct 22, 2007
Here is the truth: "Fewer than one in four private equity firms have a formal code of ethics..."

"Cerberus hits snags at GDX, Delphi" the article is entitled...

Here:( http://www.detnews.com/apps/pbcs.dll/article... )

"One of the key pieces in Cerberus Capital Management's growing automotive empire appears to be faltering under the ownership of the private-equity giant." [snip]

"In August of 2005, Cerberus's top automotive executive, former Ford veteran David Thursfield, was named executive chairman and interim chief executive of GDX. Since then, GDX has embarked on what the company Web site calls "an aggressive restructuring of operations in North America and Europe.""

The union and its workers are not responsible for a private equity firm coming in and "restructuring operations" otherwise known as "buy it --strip it-- flip it" wherein the resale of troubled companies or their former assets is undertaken after every dime that can be squeezed out quickly is pocketed in private hands...

Contrary to the Gordon Gekko's of this world -- "Greed" is not good!

By the way here is the UAW's take on Cerberus: "The reality is that Cerberus, a firm notorious for stripping companies of their assets in order to resell them at a profit, is preparing to brutally slash the jobs, wages and benefits of Chrysler workers. Since its founding in 1992, Cerberus has amassed enormous wealth from the contraction, not the expansion, of corporate entities ranging from retail chains to auto parts and supply companies. It has left a trail of battered companies either drastically downsized or dismantled."

See Also:

"Wall Street" - The Film
( http://en.wikipedia.org/wiki/Wall_Street_ (film))

"When Buyout Firms Start Stripping And Flipping, IPO Investors Lose" - David Henry and Emily Thornton, Business Week - August 7, 2006, Pgs. 28-31.
( http://www.bowne.com/securitiesconnect/detail... )

"The Cerberus Takeover Of Chrysler, What It Means For Auto Workers" - UAW
( http://futureoftheunion.com/... ){scroll down the page to find title}

"Private Equity 'has ethics'" - Martin Arnold, The Financial Times Limited, August 20 2007.
( http://www.ft.com/cms/s/0/e5f52442-4eb4-11dc-... )

"Does Private Equity Create Jobs or Not?" - Dennis K. Berman, The Wall Street Journal, August 20, 2007.
( http://blogs.wsj.com/deals/2007/08/20/does-pr... ){see the question - read the comments}

"Cerberus Captial Management LP" - Wikipedia
( http://en.wikipedia.org/wiki/Cerberus_Capital... )

"Cerberus Captial Management LP" - Home Page
( http://www.cerberuscapital.com )
huntington man

Latonia, KY

#28 Oct 22, 2007
I guess that dan quayle needed a pay raise. between huntington, marion, and wabash....lots of jobs have vanished from that area.
Leftcoast Grad

Redondo Beach, CA

#29 Oct 22, 2007
Broken Promises wrote:
Quit blaming everything on the employees of these companies.
Clearly the business discussions being made are not the result of employees hard work or union representation.
It has more to due with global sourcing, innovation, and companies wanting to off load the financial burden of domestic pension and health care promises made to long time team members.
No Union has ever made a company more profitable....
If the a company is making a reasonable profit it won't close.....
dogthatbitmitch

Louisville, KY

#30 Oct 22, 2007
Free trade agreements seem to be taking jobs away from our citizens. Why do we keep electing politicians who favor Free Trade Agreements which are clearly hurting our families???
Lets Face it

United States

#31 Oct 22, 2007
Shut it down, move production via contract to China and the savings alone will pay the debt.
truthfool

United States

#32 Oct 22, 2007
Clown in Town wrote:
Cerebus is an investment company.
How do investment companies make money? Either by investing for the long term or buying companies, selling off what they can at a profit, and then reselling the original skeleton of a company.
It's all about the money.
Yes it is and this is no way to run a country but it is a way to ruin a country and move your core money tree offshore to lose debt and pension promises leaving you as the hell on earth for 700 families Hello alcoholism, divorce, gangs, juvenile drug abuse, the gang @ Cerberus Which includes Dan Quayle (I think) and stock them in the square in Wabash as in the 1700's justice.
Harlan Erickson

Seattle, WA

#33 Oct 22, 2007
Between the closure of production facilities and increased illegal immigration, Indiana appears to be a scary place to live right now. Opportunity for decent paying jobs certainly isn't bountiful. God speed, people.
Kat

United States

#34 Oct 23, 2007
Sharon wrote:
I'm from Wabash. This is another example of a union managing to destroy a company and run everyone out of a job. It's going to be devastating for the Wabash area.
WHAT a bunch of hogwash, you have no idea what you are talking about. What happened to these five GDX plants that are closing has to do with investment companies buying smaller companies, restructuring them and reselling them to make more money. When a company like Cerabus purchases a smaller company the writing is on the wall. The first thing they do is make the people take wage or insurance cuts, which they did at GDX, then they start trying to find a buyer, which they did. When Winnchurch didn't want the five plants that are being closed, Cerabus decided to close them,,,,,after all they made their money off of the deal, they were done with them and went on to other things (bigger deals) The union has done nothing but bend over for this company these last three years!
Learn before you go shooting your mouth off.
Candy Mulkey

Chicago, IL

#35 Oct 29, 2007
I work at the GDX Plant in Wabash, Indiana. Cerberus has not been payiny our our bills for months. They said they washed there hands of our company. The people we made our products for have paid for supplies and our wages. We have been making banks for months to make our customers have there products. It's a shame that a big corporation can't pay it's own bills and leaves over 700 houndred people without there jobs. Thanks for listening. Candy Mulkey
Jim

Oceanside, CA

#36 Oct 31, 2007
Candy Mulkey wrote:
I work at the GDX Plant in Wabash, Indiana. Cerberus has not been payiny our our bills for months. They said they washed there hands of our company. The people we made our products for have paid for supplies and our wages. We have been making banks for months to make our customers have there products. It's a shame that a big corporation can't pay it's own bills and leaves over 700 houndred people without there jobs. Thanks for listening. Candy Mulkey
Might add that Cerebus has not been paying the taxes to the local community for the past 8 months either. They knew what they were doing. And I cant beleive the people that defend this type of action in the name of big business not only have they impacted their employees with the closing but they have really done damage to an area that has counted on them for tax support for all the years that GDX in one form or another has supplied to the area. Oh yea for you business people out there cerebus was given a very lucretive tax break from the state and county when they bought us but never notified anyone when they decided to pull out. Now Dan Quayle and the boys are trying to use loopholes in the WARN act so that they dont have to honor the contracts with the union.
Shame on you Big business no scruples, no ethics, and in rerally poor taste all for the mighty Buck
mcr_chic

Leesburg, IN

#37 Nov 2, 2007
ACDC wrote:
I'm from Wabash too. Growing up, it seemed like that place was always on strike. I don't know if the union "destroyed" the company, but Indiana has been bleeding manufacturing jobs for a long time. This will be terrible for Wabash. 700 jobs is a huge loss for a town of 12,000 people.
hello,im from wabash indiana,are you a punk or somthing bye,i have to login,but remember im mcr_chic!

“I wsh I ws a gy so I cld b gay”

Since: Jun 07

...Wabash...

#38 Nov 2, 2007
ACDC wrote:
I'm from Wabash too. Growing up, it seemed like that place was always on strike. I don't know if the union "destroyed" the company, but Indiana has been bleeding manufacturing jobs for a long time. This will be terrible for Wabash. 700 jobs is a huge loss for a town of 12,000 people.
im logged in!!!so have you ever been to th noise maker its in down town wabash.have you been to modocs!??

“Back in Black”

Since: Feb 07

Monon, IN

#39 Nov 5, 2007
MCR_chic wrote:
<quoted text>im logged in!!!so have you ever been to th noise maker its in down town wabash.have you been to modocs!??
Yes, I bought some coffee at Modocs a couple of weeks ago. Nice place. Never been to the noisemaker.

Since: Sep 07

Location hidden

#40 Nov 5, 2007
"Cerberus Capital Management, L.P. is one of the world's leading private investment firms. Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation.

Cerberus is headquartered in New York City with affiliate and/or advisory offices in Atlanta, Chicago, Los Angeles, London, Baarn, Frankfurt, Tokyo, Osaka and Taipei.

Cerberus holds controlling or significant minority interests in companies around the world. In aggregate, these companies currently generate over $60 billion in annual revenues."

http://www.cerberuscapital.com/about_comp_pro...

I just wanted to know if anyone else thought this was rather watered-down way to say we buy companies, sell off the immediately profitable, close the parts we can't sell (while taking huge tax breaks), and then sell the remaining skeleton?

“I wsh I ws a gy so I cld b gay”

Since: Jun 07

...Wabash...

#41 Nov 16, 2007
ACDC wrote:
<quoted text>
Yes, I bought some coffee at Modocs a couple of weeks ago. Nice place. Never been to the noisemaker.
i love modoc's. great coffee!!!have you ever heard mike middleton plat over there??
GDX wiffe

Grand Rapids, MI

#42 Dec 4, 2007
You are cruel and ignorant...
Clown in Town wrote:
Please explain how this:
"The Wabash Plain Dealer reports that local union leaders were notified about 3:30 p.m. Friday by owner Cerberus Capital Management. Cerberus also owns Chrysler, having purchased in the company from DaimlerChrysler AG in August 2007, the newspaper reported."
Explains this:
<quoted text>
You do realize that GDX has been dwindling for years, right? You also understand the concept of a global marketplace, right? And I sincerely hope you understand the concept of corporate greed and golden parachutes, right?
Sorry to say it, but if you don't have some understanding of these concepts, you better learn the concept of "Would you like fries with that"?
Dave

Mooresville, NC

#43 Dec 19, 2007
I worked at the GDX plant in Salisbury, NC. Salisbury was the first plant closed by GDX, most of the work and equipment was shipped to Mexico. Salisbury was not a union plant so don't feel that the union had anything to do with the closure of your plant.
Mark

Warsaw, IN

#44 Nov 23, 2009
Sharon wrote:
I'm from Wabash. This is another example of a union managing to destroy a company and run everyone out of a job. It's going to be devastating for the Wabash area.
Umm.. the crappy economy was to blame I worked there Mrs. Union hater..

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 2
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Wabash Discussions

Title Updated Last By Comments
News Gangs in Vincennes (Mar '07) Oct 19 George 7
Honeywell Center - Wabash, IN Oct 17 lewism92 1
wabash Oct 2 dang midget 1
Things You Can Remember About Peru (Apr '08) Sep 23 PeruBoy 192
News Woman arrested after infant tests positive for ... Sep '17 what 1
News Wabash woman charged after 6-week-old tests pos... Sep '17 resident 1
wabash Sep '17 resident 1

Wabash Jobs

More from around the web

Personal Finance

Wabash Mortgages