Interesting story from the AP

spoon059 wrote:
Not at all my intention. Just pointing out that those costs are swallowing GM up at the 2010 rate of $2000 per car. One of the biggest crimes, in my opinion, with the TARP program is that it allowed big companies to use that government money to pay massive bonuses to executives that did NOTHING to earn them. Massive mismanagement across the board, I just don't have a breakdown of how much the company is paying the CEO, the last CEO and the CEO before that in bonus money. I'm sure that number is inflated as well and represents even more overhead costs that prevent GM from being a profitable company. I was just giving one example.

You are implying that the $2000 is a cost to assemble the $60K truck. That's not true at all. That is $2000 on top of the cost for raw material, assembly, paint, etc. Its not just on the $60K truck either. That's also on the $18K car, $25K truck, etc etc. GM could be turning HUGE profits if that $2000 per car went towards profits rather than paying retired employees overly generous compensation. I have no disdain for the assemblers. More power to them to be able to command those types of retirement packages. My point is that those costs are overwhelming GM's resources and limiting their ability to be a profitable company.

I'm implying that $2000 in labor and management including legacy costs to assemble a $15k car or $60k pickup truck is a bargain as compared to relatively minor projects that easily cost that much around the house or to the RV. People gladly drop that much cash on needless custom wheels or cheesy options. I paid more than that for two crappy little recliners for our 5th wheel. Those overly generous retirement packages were agreed too and signed by management. Those contracts would not exist without management's signatures. They did not have to agree to those generous contract proposals. Short sighted management sees short sighted gains. The UAW has given some hefty concessions over the past few years trying to keep their interests alive. GM has finally started producing some attractive vehicles again. Hopefully it's not to late. I would like to see the big three take the market back. It's in vogue to bad mouth America now. That's a hard one to turn back around.