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
spoon059 wrote: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.
You make it sound like the thousands of management retirees don't also have a lucrative retirement package. It makes the UAW retirement package look piddly. Why the disdain for the assemblers? $2k to assemble a $60k truck isn't bad at all. You'll pay that much to have some non-union low paid electrician install a new service at your house.
