For the good of the many?

[papasmerf]

http://money.excite.com/ht/nw/bus/20060310/hle_bus-n10279863.html

As the automaker GM slips it affects not only the US but Canada too. Too often labor has been blamed for costs but might it not be cost accounting that shows high labor costs?

 

[tboy]

Ok, so if they cut some shifts now autoworkers will only make twice as much as the average Canadian instead of 2.5 times....

Labour costs account for the majority of costs in manufacturing. This applies to anything, not just cars and trucks.

The way I see the problem with GM is the other 2 of the big three have come up with innovative and popular designs and continue to sell. GM has lagged big time due to their lack of foresight...

Reminds me of the Coke/Pepsi situation. Coke was like, "we're coca-cola, wtf do we care about anything"??? and then a couple of years later, "OOPS, guess we shoulda paid attention to that company..." DOH

 

[spiff]

Thought it was health care

Believe I saw something on CNN saying the health care program for GM in the US was the largest cost to the company.

As well, politics plays a factor here. Number one rated plant for quality and production was in Canada, but alas it will be closed. Interesting choice for downsizing if you ask me....

 

[tboy]

Don: what the hell is a PUTUS????

 

[Esco!]

Don: what the hell is a PUTUS????

POTUS = Prez of the USA

 

[tboy]

Thanks Esco! Misspelling was never a problem on
TERB before!!!

Hey now, I thot mabee it was sumthling else entirrelee......sheesh, cant a goy axe for clariferation?

(ya I know, I'm a smartass!)

 

[Meister]

#1 GM should just shrink and concentrate on a few winners.
Escalade, Pontiac G6, Corvette, Hummer, Saab Aero, Camaro

Get rid of all the extra weight. Do we really need Chev, Buick, Oldsmobile, Pontiac? They all have similarly crappy products. Consolidate and concentrate on just a few. So what if GM is only #3 or 4 in the world as long as they stay profitable.