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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Haim R. Branisteanu who wrote (9081)7/12/2004 10:04:48 AM
From: mishedlo  Read Replies (1) of 116555
 
Business week's cover story is on pension obligations. GM's pension and health-care costs for retirees are $1784 per vehicle. Compare that with Toyota's $200/vehicle. "GM's margins are now 0.5%, among the worst in the industry. But without the burden of pension and retiree health-care costs, the auto makers' global margins would be 5.5%.... closer to Asian carmakers like Honda Motor Corp., which earns 7.5% on its global sales."
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