Reply #76: more info - must read [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=marketsNews&storyID=2005-06-07T154800Z_01_N07424837_RTRIDST_0_AUTOS-GM-UPDATE-3.XML

excerpt:

"The cost of a GM worker in China is about 10 percent the cost of a U.S. worker ... You just really can't compete with some of these foreign producers," Bee said.

GM, the world's largest automaker, lost $1.1 billion in the first quarter and is riding out its worst financial crisis in more than a decade. It has been closing and idling plants over the past four years and will have cut its annual North American assembly capacity from six million vehicles in 2002 to five million by the end of this year.

<snip>

Wagoner said GM had been in intense discussions with the United Auto Workers union about ways to reduce the company's massive health-care costs. He said it was not certain whether an agreement would be reached.

<snip>

Wagoner said, "Our $1,500 per (vehicle) health-care expense represents a significant disadvantage versus our foreign-based competitors. Left unaddressed, this will make a big difference in our ability to compete in investment, technology, and other key contributors to our future success."

...more...

Maybe they should start looking at why healthcare costs are soaring - have they been using AIG or other lying scalpers to underwrite the cost?

:banghead: