06-30-2010, 10:49 AM
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#11 (permalink)
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A True Z Fanatic
Join Date: Dec 2008
Location: Texas
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Quote:
Originally Posted by daisuke149
you cant blame the government for that. infact blame GM. BLame the unions for making it hard for GM to make a regular small car and turn a profit on it. Blame GM for not making a product good enough where people would want to pay a little more, thus earning them a profit.
Its always easy to say "government fault... yep them. everything their fault etc etc"
and p.s.. they do make a profit off the regular stuff, just not as big of a margin.
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I'm not blaming the Government for GM's past mistakes, just the future ones!  Seriously, union compensaion over the years plus the recession is what's killed GM. You can't compete in the $12K car market if your labor costs are $1500 more than your competition's. That let's your competion have an extra $1500 to improve their product. You have to go up to more expensive SUV's, etc because it reduces the percentage of cost due to labor per vehicle. Past compensation practices weakened GM's ability to survive the recession.
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