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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (437006)11/27/2008 2:58:29 PM
From: tejek  Read Replies (3) of 1573901
 
GM is in trouble because while the other OEMs were accumulating money, American OEMs were paying their employees NOT to work. There simply isn't any doubt about this, we know what the numbers are. GM would have turned a PROFIT last quarter were it not for the higher personnel expense resulting from the union stranglehold. If you would shut down your liberal ideology for 10 minutes and spend the time actually reading their financials and analysts commentary, you would know this.

You can't have done much analysis of GM's financials or you would not have made such a statement. GM's gross margin is 2.88% vs TM's 16.39% and the industry average of 15.95%. High labor costs in the factories do not begin to explain the the spread between GM's gm and the rest of the industry's. Only with highly cost competitive supermarkets have I seen sucha low magins. I mean......GM has not paid taxes for at least 5 years while TM has an effective tax rate of 37.7% and the industry 29.8%. In fact, GM's financials are a joke. Even Ford has a much better GM at nearly 8% but it too doesn't pay taxes. It seems to me no taxes offsets any labor cost disadvantages.

Having said that, I do think there is a problem with the GM's pension and health plans for retirees. Those will have to be renegotiated but given GM's margins that appears to be only the tip of the iceberg. Clearly, GM has got to do some serious revamping of its financial structure.

And inode, I would really appreciate if you would stop making such outrageous comments without checking the facts. You sound like Fox News.
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