Bailing out GM

[slapshot]

Originally Posted by scottw

Total compensation per hour for the big-three carmakers is $73.20. That’s a 52 percent differential from Toyota’s (Detroit South) $48 compensation (wages + health and retirement benefits). In fact, the oversized UAW-driven pay package for Detroit is 132 percent higher than that of the entire manufacturing sector of the U.S., which comes in at $31.59.

Those are some scary numbers. Pretty easy to see, right there, why the big three cannot compete or even survive for that matter.

[striperman36]

We always joked, when I was part of the group handling the GM benefits systems, that $1200 of every car sold was for benefits.

We had a significant problem in that GM had no way of tracking dependents of insuree's. You got family coverage with no copay, and continued with that benefit regardless of death, divorce, children over 18, etc.

We tried to get insuree's to register dependents during Annual Enrollment but, had little success in getting turnout to do so, we were hindered by the union in communicating to its constituents

[scottw]

As for bailout conditions that require any car company that gets taxpayer money demonstrate a plan for transforming every vehicle in its fleet to a hybrid-electric engine with flex-fuel capability, so its entire fleet can also run on next generation cellulosic ethanol.

There is already an auto company that does this. In addition to sedans, it offers hybrid models in even its largest SUVs. This company is also the industry’s largest investor in cellulosic ethanol production, and every model it makes is flex-fuel capable.

This company’s name? General Motors. Obviously, there’s more to profitability than being green.

[BigFish]

Originally Posted by slapshot

Those are some scary numbers. Pretty easy to see, right there, why the big three cannot compete or even survive for that matter.

Yeah it has nothing to do with the fact that the company execs make an exorbitant salary (way more than they deserve)(not to mention absolutely ridiculous bonuses) and that they expense all these lavish trips and perks and benny's for themselves........but hey......lets US ALL take a hit, bail them out, give them billions with no idea how or when we will get it back.....and then STILL watch them layoff untold numbers of people during their restructuring process! Sure....lets help them!!!

[striperman36]

Why not, we're doing it with the friggin financial organizations.
We are only givin the big 3 25 billion worth from TARP