Is there a correlation between corporate jets and lack of profitability? Of course there is. The real tell in all of this is each company seems to have nearly the same number of jets per company. A pissing contest? I think so.
This is stupid.
Corporate jets are not the problem. You have a company that lost 2.5 Billion last quarter, and of that loss, the cost of corporate jets amounted to maybe 1/10 of one percent, and that's not counting the savings from having owned them.
Look at the REAL problem. They sold $37.5 Billion worth of cars last quarter. G&A expenses were $3.25 billion versus cost of sales at $34.5 Billion.
GM sold 2.1 Million vehicles in last quarter.
Health care costs per vehicle are $1,635 versus $215 for US Toyota, a difference of $1,420 per vehicle JUST FOR HEALTHCARE COSTS. In addition, insane labor contract issues like work rules, holiday pay, etc., add $630 per vehicle to GM's cost, again, costs, which Toyota doesn't pay. Paying UAW members for not working? $350/vehicle.
Health care $ 1,420/vehicle
Contract costs $ 630/vehicle
Paying for Not Working $350/vehicle
Total? $5 Billion -- their entire last quarters' loss, DOUBLED. And this doesn't count the higher cash compensation.
The problem isn't gas guzzling. The problem is union-guzzling. They're sucking these companies dry and now expect the taxpayers to bail their asses out. |
