Interesting story from the AP
General Motors is taking a seemingly odd approach to falling sales of pickup trucks: It's raising prices. The company says the price of the 2014 Chevrolet Silverado will go up almost $2,100. Full S...
Forum Discussion
Perrysburg Dodgeboy wrote:
Spoon please please post a link to that article.
Don, I have to admit I don't remember the exact article, as it was a couple years ago that I read it. Here is an article that supports my argument, but it was written back in 2010. The article states that legacy costs add an additional $2000 per vehicle sold. That $2000 either has to be eaten by GM or passed on to the consumer. http://www.nydailynews.com/2.1353/general-motors-fail-article-1.374800
I'm not sure what the current cost per vehicle is, but hopefully it is substantially less than it was in 2010. I have no idea one way or the other, but even at a 75% savings, that is still an additional $500 per vehicle in extra costs to cover retirement benefits for a retiree collecting a pension that hasn't put a car together in decades. Great for the retiree... not so much for stockholders (the US gov't) or GM customers that are paying substantially more per vehicle to cover those costs.
