When times were good GM aceeded to every union demand for more pension and health benefits. Now the company faces over a billion dollars for outstanding health benefits alone. What isn't realized is that the workers for auto manufacturers headquartered in Japan have all their healthcare benefits provided by the government. Aside from some marketing errors made by GM this represents a huge liability for U.S. domestic manufacturers.
Retirement age needs to be increased...back then people died soon after retirement, not anymore where they rake in also empty health care. This is not how it were computed.
Incorrect. The American workers for Asian manufacturers have their healthcosts paid by their employer, not by their employer's government.
"Aside from some marketing errors made by GM this represents a huge liability for U.S. domestic manufacturers."
I'm one observer that believes "some marketing errors" is the true crux of the matter.
GM's falling market share is not tied to retirees' benefit costs; it is caused by consumers rejecting the products.
They have fared well with their "light truck" line; pickups and suvs.
They have:
--Continued with outdated pushrod motors, some decades old.
--Stopped their Camaro/Firebird line with NO replacements. (Meanwhile Ford's completely new Mustang sells very well, proving there IS a market; another market GM walked away from)
--Continued the Aztec, long after it was an industry laughing stock.
--Named a new Buick "Lucerne" instead of Roadmaster, or an other American car name.
--Continued a belief that by "badging" they fool buyers into thinking they make a wide selection of vehicles.
--Failed to have a real hybrid.
--Failed to introduce new rear wheel drive sedans.
--Failed to build old fashioned station wagons; which will increase in sales, due to downsizing from suvs.
--Backed away from ties to Subaru, an excellent company.
--Wasted billions with Fiat, a crappy company.
--Tried to foist an import from Australia as a GTO.
--Failed to introduce "youthful" vehicles, as can be seen by Toyota, Honda, VW, Subaru, Mitsubishi, Ford, etc.*
* Just as they failed to compete for the higher priced BMW-MB-Audi-Lexus-Infinity market, they now fail to compete with the youngest buyers.
These young buyers go for the makers' mentioned, such as Scion, Honda, VW, Suraru, etc. Small functional "different" styles, and high performance small cars.
In fairness, their all new Cadillac line include good cars. Mainly designed in Europe.
I contend that GM's Detroit design/engineering has otherwise died on the vine.
I think they should fire all top management, and a majority of the board of directors. They have been so afraid of risks, that they remained flatfooted, way too much, way too long.
I like my present GM car: A Swedish designed and built Saab, a company bought by GM which I fear they are in the process of misusing, before they screw it up.
GM workers in Canada also have government health care, so why did GM shut down that plant? It is also one of the 2 most modern GM plants in North America as well. If health benifits were a big factor to GM, it doesn't make sense that that plant closes, plus labor costs are a bit cheaper too, as well as steel. I think politics plays a big role, not just health benifits. How many off shore plants has GM closed?