SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: michael97123 who wrote (437077)11/28/2008 10:29:21 AM
From: i-node  Read Replies (1) of 1573920
 
You say unions aren't the problem, but then go on to speak about unskilled workers making, effectively, 150K/y.

The number of dealerships has little to do with it. The "cost" of a dealership to GM Corporate is nil. Dealerships pay for EVERYTHING.

There could conceivably be some savings by dropping unpopular lines like Buick, however, these decisions are made based on incremental margin analysis and I suspect GM has done its homework on this subject and determined that those lines, while perhaps not profitable, contribute to defraying fixed costs and are being kept active for that reason.

People should keep in mind that TM has Toyota, Lexus, and Scion in the USA and THEY don't feel the need to drop any of those.

This is a complicated problem and without access to the operational details it is hard to know what all enters into a solution. But it is apparent that unions have to be the starting point because they are far and away the biggest component of the problem. Your own remarks ought to make that clear.

A GM plant requires nearly 50% more people just to keep the doors open versus an American Toyota plant. This is due solely to unions allowing workers to be paid for not working and standing in the way of modernization. And it is, undoubtedly, also the source of some of the QC issues.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News