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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (439992)12/12/2008 12:22:01 PM
From: Alighieri2 Recommendations  Read Replies (3) | Respond to of 1573530
 
It is certainly the biggest problem and fixing it will chop off up to $18B in annual cost.

I don't completely agree with the following, but here's some food for thought. I think these companies have deeper market image problems than just overdependece of gas guzzlers.

Al

Labor costs only make up 10% of the cost of getting a car to the dealership. Cut their pay from $55 to $45 and you will cut less than $1000 on the cost.

$1000 will not make anyone decide on a car that consumes more gas and is more likely to break. Fiction or reality, that's the perception. Until they change that, they will continue to fail. Workers cannot change that. They can continue to take pay cuts while executives continue to believe that Hummers, Yukons, Suburbans, Tahoes are what America need.

Al



To: Joe NYC who wrote (439992)12/12/2008 12:33:28 PM
From: tejek  Respond to of 1573530
 
Other problems are way down the line.

Cars are a consumer product. Reducing the cost of the cars will not sell them. Improved design, innovations, quality and marketing will. That is the GM's biggest problem, not its labor costs. In fact, labor costs were the least of what needed to get fixed.....while the easiest to fix. It figures GOP leaders would go for the easy fix.


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