GM to spend $360-$420 million on Y2K buggreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread |
Back in December, GM was one of sixty-eight Fortune 500 companies that had announced December 31, 1998 as the date by which they planned to be finished with internal remediation:http://y2ktimebomb.com/Computech/Issues/lcore9851.htm
This article just came out today and doesn't say whether internal remediation at GM is complete or not:
[Fair Use: For Educational/Research Purposes Only]
GM To Spend $360-$420 Million On Y2K Bug
07:02 p.m Aug 16, 1999 Eastern
DETROIT (Reuters) - General Motors Corp., the world's largest automaker, said Monday that it will spend $360 million to $420 million to prepare its extensive computer systems for the year 2000.
That includes a $62 million payment by GM to computer services vendor Electronic Data Systems Corp. at the end of the first quarter next year if the year 2000 computer bug does not cause a significant disruption.
If not fixed, when the year 2000 arrives many computers will read ``00'' as 1900. That could cause many computers to crash or malfunction.
GM also said in its quarterly filing with the U.S. Securities and Exchange Commission that EDS will also perform $204 million worth of work on year 2000 preparation as part of its normal fixed price services.
GM already spent $142 million in 1997 and 1998 and about $96 million in 1999 for work on the year 2000 bug, while EDS has performed $233 million of work under its master service agreement.
Copyright 1999 Reuters Limited. All rights reserved.
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-- Linkmeister (link@librarian.edu), August 16, 1999
Lets see, adding up the figures for 1997 to 1999 to date, I get $471M spent. Yet they are, in the next few months, going to spend an amount rivaling that, maybe as high as $420M!! And yeah, what indeed happened to that "full year of testing"? Unless, of course, this IS for testing ... LOL!
Bad news, folks: Y2K ain't gonna get fixed in time, for those who have not actually figured that out for themselves yet. (e.g., Y2K Pro, Hoffy, Maria, Flint, ...)
-- King of Spain (madrid@aol.com), August 16, 1999.
Here's an article from March about GM:http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=000b9b
GM Forecasts Year 2000 Costs At $710 Million-$780 Million
(Last updated 12:40 PM ET March 11)
DETROIT (Reuters) - General Motors Corp. said Thursday that total spending to prepare the company's computer systems for the year 2000 is forecast at between $710 million and $780 million. The world's largest automaker said in a filing with the U.S. Securities and Exchange Commission that direct spending will account for about $450 million to $520 million, with peak spending occurring in the fourth quarter of 1998 and early this year. The rest of the total spending is accounted for by the value of services performed by former GM unit EDS Corp.
The total includes an additional payment of $75 million to be made to EDS at the end of the first quarter in 2000 if systems prepared by EDS do not seriously disrupt GM's operations. Including the bonus, EDS would receive a total of about $335 million, GM said.
The automaker said it incurred about $40 million in Y2K expenses during 1997 and another $145 million last year. It valued the services provided by EDS in those years at about $260 million.
GM said its costs do not include information technology projects accelerated because of Y2K. Those projects were valued at $30 million.
The company said it reviewed all microprocessors installed in cars and trucks it assembles over the last 15 years and none will be affected by any problems.
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-- Linkmeister (link@librarian.edu), August 16, 1999.
Err, Your Highness...Probably won't know for sure until the SEC form is available, but looks to me like GM is actually reducing their estimate.
Where's Weiss when you need him...
-- Hoffmeister (hoff_meister@my-deja.com), August 16, 1999.
There was a delightful CW song years ago titled "I think you're just a little bit late". Wish I could find a copy for GM.
-- Carlos (riffraff1@cybertime.net), August 16, 1999.
A couple of snips from an April 23, 1998 article on Y2K and the auto industry:http://www.auto.com/industry/qbug23.htm
[snip]
GM expects to spend $360 million to $500 million, most of it this year, to prepare its factories and offices for 2000. The largest automaker spent $44 million on Year 2000 issues in 1997.
[snip]
But the Big Three are confident they will enter the new millennium smoothly. GM, Ford and Chrysler plan to finish debugging by the end of 1998. They'll spend 1999 fine tuning.
[snip]
-- Linkmeister (link@librarian.edu), August 16, 1999.
Finally a company I do know a bit about. Bottom line, if GM's assembly plants make it, it won't matter. The suppliers WILL stop them dead in their tracks. Fix on failure my ass.
-- R. Wright (blaklodg@hotmail.com), August 16, 1999.
LAST-CALL=the ark is almost=full.
-- free-trip. (dogs@zianet.com), August 16, 1999.
But you have no doubt, GM will make it -- right, Hoffy? (And their umpteen zillion suppliers that they depend on too, of course.)
-- King of Spain (madrid@aol.com), August 16, 1999.
Let's keep it straight King. It's about 3000 suppliers. My god even Disney's pollyanna could realize the implications there.
-- R. Wright (blaklodg@hotmail.com), August 17, 1999.
HoffGM has not put out their SEC Disclosure yet (10 - Q). Matter of fact none of the auto makers have yet. When they do put them out I will be posting it on the forum. Never trust the press when a company document will settle the matter. Oh and that is still chicken feed. Citigroup has shoveled out over 900 million dollars as per their latest disclosure.
-- Brian (imager@home.com), August 17, 1999.
Ignore what the automakers say. Look at what their suppliers say. And oh, lest we not forget, a larger and larger portion of their parts are coming from Mexico. Hmmmm, care to make any wagers about assembly line shut downs next year?????
J.I.T.-Just in time.
S.I.T.-Shutdown in time.
-- John Galt (jgaltfla@hotmail.com), August 17, 1999.
AND...Noah stayed in his ark for a full year after the rains came!
-- Moore Dinty moore (not@thistime.com), August 17, 1999.