It is simple math. The UAW claims to have saved GN with their conssesions.
Yet the new contract takes us to even higher wages than in the past .
While there has been a few changes at GM in operations this will not save them in a downturn.
It is largely business as usual with little or no profit coming from autos.
7 of the top selling 7 cars are foreign.
Now imagine the effect of eliminating the Second Tier in this last contact.
Better yet imagine paying a reasonable wage of top out 20 and hour x 40 k workers on profit.
Eventually history will repeat.
Unless they survive long enough to negoiate a real substainable contract with the UAW..
It is pretty simple . The high UAW wages. The bulk of profits were earned under the two Tier wage system and wage concessions gained during the bankruptcy.
The two tier is now gone. A gigantic bonus was paid.
As sales slow or any hiccups happen the Street knows we will return to yesterday.
You simply cannot pay UAW wages for a commodity product.
7 of the tops 7 selling cars are foreign.
GM makes little profit from the cars they do sell.
Still way to many companies selling cars.
No lessons learned from the past.
Imagine the profits lost with these new wages.
THE UAW themselves EXPLAIN we saved GM with out wage concessions , so how will history not repeat since the concessions are now gone ?
THE UAW contract which I warned you over and over about .
They will blame it on Europe but if the UAW was being paid a fair wage of top out of 20 after 5 years ,profits would continue to come into Ford.
Now the repeat of history is beginning. Ford un der 13
And here we go
not be around because theyc ould care less about the stock price as they don`t own any stock.
There just at Ford to bleed the company dry as they are doing with the lastest conteracr. Ford close rto below 12
Of course the about UAW shills told us Ford would be fine paying outragous amounts of money to the UAW
When profits start falling due to the higher wages and slower sales ?
We are at 12 and change.
Tell us again Questionater, flying, Jeff, love,Mo, and the Gang of UAW shills how labor costs do not mean anythig.
We shall see you at contract time when F is trading around 7 .
Should have clarified the buyer of American Ford /GM products for the most part are commodity buys.
Example Fushion vs Malibu . Most will buy whichever car costs less.
Mr Ford please build all your cars in China and Mx. After the UAW stuck it to you . And history will repeat . When the down cycle starts as Wall Street has mentioned over and over Ford will bleed red ink.
It is absurd to keep saying they will be fine paying record wages when car sales dip to 13 million.
In fact the UAW itself claims they saved F and GM witgh WAGE CONSSES.IONS .
So what happens when Truck sales slow, and all sales slow.
The automotive remains a commodity based industry. The loyalty of people like my Dad has long passed. Buick, Buick, Buick, Buick, . Then Olds for the rest of his life. Always a GM man,
Today anyone under 50 wants a BMW, OR MERCEDES for the most part. The foreign transplants to America always buy Toyota or Honda. The younger crowd or less moneyed [older buyer] same story .
7 of the top selling 7 cars are foreign.
The only thing holdiong the US up is the SUV/Truck market just like in past times.
Nothing learned with the UAW raise.
You cannot pay these wages and profit in this bussiness.
What your seeing is history repeating itself.
Insanely unsbstainable UAW wages
GM spending like a drunken sailor on leave , buying up other companies
Spending the public sector
Supporting resterants in the Ren Center they use to subsidize Seldom Blues 1 million a year
Record bonus and pay through out the Company and perks galore.
And we are the bag holder
UAW wages 40 thousand workers times even a 10 dollar reduction and hour would keep the compoany profitable. Yet they gave away the farm in eliminating the second Tier.
On and on this guy rambled about controlling costs now and in a downturn.
How will he do that , materials cost what they cost , heating /colling a plant .
Incentive spending . GM won`t , so when car sales drop and Toyota is killing them there just going to keep GM car prices non competitive ?