Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote]QUOTE: Originally posted by TomDiehl [quote]QUOTE: Originally posted by futuremodal There are 2.3 retirees drawing benefits for every 1 GM worker. That should tell you something. That would also tell you that GM's plans for massive layoffs isn't going to change that 2.3 to 1 ratio. GM is not tackling the legacy problem, instead it seems they're just trying to placate Wall Street in the interim. Maybe they think the feds will bail out the legacy liabilities. [/quote] Refering to the article link in the first entry and applying a bit of math: More retirees (early retirements AGAIN) plus less active employees (downsizing) equals a change in the 2.3 to 1 ratio. And NOT for the better. Shortsighted management thinking is just making the matter worse. [/quote] According to a report on CNBC, GM went from around 40% market share in the 70s to the 20% range today. Automation is also a factor as less workers are needed to build a car. Chrysler's market share over the same period has stayed roughly the same and in recent years they've actually gained some at GM's expense. The plant closings are supposed to bring production capacity down to what they actually expect to sell. The employee discount program moved a lot of cars, but they lost a lot of money doing that. Gaining back market share won't be easy and IMO part of GM's problems are structural and related to the shrinking middle class. They've traditionally marketed and sold the more profitable cars largely to middle class buyers, in many cases those same union workers. Wealthy individuals tend to buy a Mercedes, Lexus, or Jaguar. Poorer foks buy imports or the smaller U.S. cars which have very small profit margins due to the legacy costs. Building trades workers buy the more profitable trucks but tend to keep them for a long time. Ford bought Jaguar and Volvo to go up-market and increase their European sales which were aleady significant. GM is trying to up-market Cadillac and according to CNBC they plan to open more plants in South Korea and China.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag