Labor Unions - Do we need them anymore?

[Motokid]

And Ford and GM will go bankrupt if they continue to blame the Union for all their woes and do not bring their plants up to speed among the many other problems thay have caused.

And did you not see this from me?

I'm sure there's plenty of blaim to throw around, and the top brass are no exception. They deserve to be hit hard too.

So how much money is needed to bring plants "up to speed"? Hundreds of millions maybe? Where's that going to come from? If GM is the number one selling auto manufacturer in the world for decades on end, and during what could be the worst financial year of their entire history they still manage to be the number two selling manufacturer in the world, and have the second highest sales numbers in terms of cars sold in their history, money going in is not the problem. GM sales brought in huge, huge dollars. They should be swimming in money. The stock should be soaring. Quality of the product is not the issue. Sales is not the issue. The products are not the issue.

The problem is what the money has to go to before it can be used on anything else. 20 years ago they sold less cars and made more profit.

2005 was the second largest volume of cars sold in GM company history.
It's pretty plain to see that the problem is in where that money goes, not the lack of money.

 

[Zolipara]

If GM is the number one selling auto manufacturer in the world for decades on end, and during what could be the worst financial year of their entire history they still manage to be the number two selling manufacturer in the world, and have the second highest sales numbers in terms of cars sold in their history, money going in is not the problem. GM sales brought in huge, huge dollars. They should be swimming in money. The stock should be soaring. Quality of the product is not the issue. Sales is not the issue. The products are not the issue.

The problem with your numbers is that it represents GM as a whole. As you yourself posted GM owns a large number of brands, many of whom(i think) are not produced in America. So when GM sells a lot of cars is it because every brand of car sells well or is it just a few of them that sells really well? How many Pontiacs do they sell and how many Saab's? Its easy to blame the Unions, but none of us here can really say why GM is loosing money because quite frankly you have very little insight into the economics of the company.

By owning a large number of brands you can be the biggest selling auto manufacturer, but it does not mean your cars are the best quality cars. The fact that they are now nr 2 should indicate that they are loosing customers instead of gaining them.

 

[Motokid]

I'm not sure how you can equate losing customers when GM states: "GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in the company's history"

I also did not make this up: "The problems facing GM and Ford have been twofold. First, because of longstanding labor union contracts with their workers, American manufacturers pay out hefty healthcare and pension benefits. Industry analysts estimate that for every car sold by a U.S. carmaker, $1,500 is paid out in health benefits to workers and retired workers. That number climbs above $2,000 per car when pensions are factored in.

That's a drain that Japanese manufacturers Toyota, Nissan and Honda are not paying out, as most use non-union workers, even for U.S.-based manufacturing plants."

I've never said that GM's only problem is with the labor union but how can anyone not agree that it's playing a major role in their problems.

I also read that Saab is a sales turd, and that GM is thinging about unloading it. I'll have to go find that article.

 

[Motokid]

Too bad I didn't post more of this statement the first time.

GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume in the company's history. The automaker also set sales records in Asia, Latin America, Africa and the Middle East, and sales also were up a modest 1.3 percent in Europe. But North American losses overwhelmed those gains, and GM's worldwide market share was down slightly, to 14.2 percent from 14.4 percent in 2004.

This part especially: "The automaker also set sales records in Asia, Latin America, Africa and the Middle East, and sales also were up a modest 1.3 percent in Europe."

 

[Motokid]

This just in from GM:

$140,000 to retire early

NEW YORK (CNNMoney.com) - General Motors is offering hourly workers as much as $140,000 each to leave the company as the troubled automaker extends its push to cut labor costs and put an end to billions of dollars in losses.