This will make your head spin...
At last week's GM-Morgan Stanley conference in New York, an analyst from Morgan Stanley said research indicated fully one-third of all GM sales are to employees, family members, suppliers, retirees etc..

Here is my question: If GM contnues to step-up outsourcing jobs to other countries, as they have indicated they must do to remain profitable, who will be left to buy their cars?

Delphi (a GM spin-off) pays $400 million dollars annually to keep their "job bank" - workers who are paid 90% of their regular pay but don't work; their contract says these folks can't be laid-off so they go into the job bank.

I wish I had a job that guaranteed me 90% of my pay for not working. As it stands now, if I have nothing to do I get fired.

On a related note, Ford says that 85% of their healtcare costs are due to retirees. In other words, only 15% of their healthcare costs are for people who work there.

It's a tough business climate for the domestics these days. It seems to me that Ford is getting better products to market these days, I hope the trend can continue. GM needs to get with the program, it all starts with the product, but they keep killing vehicle programs.

 

well you would think gm would be doing great because all i see on the road in my state is grand prix's and grand ams everywhere its crazy so at least there pontiac division WAS doing good until they changed the way the grand prix looks and the grand am to that g6 really killed themselves there

 

The G6 has become the ultimate chick car thanks to the Oprah giveaway.

Around here, Grand Prix & Grand Ams are rental cars. You just don't see them around all that much otherwise.

 

I don't work for GM and do not get a GM disccount and I would not hesitate to purcahse one of their cars again. My daily beater is a GM and has over 190,000 miles and no sign of stopping anytime soon. I do think GM has Ford beat right now with cars, but not trucks.

 

1/3 of sales on discount to friends, family, workers, suppliers and retirees.

1/3 of sales on discount to fleet.

Only leave 1/3 of sales as being "for profit" and even those of discounts and incentives out the wazoo.


Seems all of the money put into Caddy and what they spend on Daewoo and the money to get in and out of FIAT isn't really helping Buick or Pontiac. Saturn doesn't stand for anything. The experiment to take the Japanese head on is just another badge-engineered division. Saab continues to lose money. They walked from Isuzu.

The General is in a lot of trouble. "The Rick" and Maxiumum Bob have driven this company into the ground. Memories of Nasser anyone?

 

GM has too many brands. They should just have Chevrolet and Cadilac, do away with the rest.