Obviously I am a layman when it comes to these matters, maybe somebody could enlighten me: How is it possible that these carmakers keep burning literally billions of dollars every year? Wouldn't it be much cheaper to just sell the operations to somebody else who could manage to squeeze a buck out of it? People are not going to buy less cars without GM/F, and they are not going to buy more with them. So who allows GM/F to just throw away this cash in a bottomless hole all the time? Isn't there better use for this money?
it's all to the unions and health care for retirees, they made promises a long time ago in writing that they now can't keep
They refuse to discount their vehicles to sell them, (attempting to force the government to bail them out, in my opinion), and have MASSIVE unfunded entitlements to pay each month. Pensions are a bad idea, period.
Refuse to discount their vehicles to sell them???? They are doing everything short of paying consumers to buy them.
Same tactics that have been in play for years. MSRP is still at the highest levels of all time. I am talking about the real price, not the bogus price they bait you in the newspaper. Girl in my office has been to 3 different GM lots in Houston, no deals.
Ford and GM average about $3900 per vehicle in Long Term Debt. Where did that Debt come from? Ask their pension plan and health care administrator.
The CEO of GM told a reporter 2 yrs after taking the job, "I thought I'd be making great cars, but all I'm doing is managing health care and pension plans for the retirees."