11-18-2008, 05:34 AM
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Canadian Gashole
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Join Date: Mar 1999
Location: Quebec, Canada,
QC
Cobra Make, Engine: Johnex 427 S/C, 351W, 472 HP, 444 lbs. torque
Posts: 2,455
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Not Ranked
I have a feeling that the Big 3 may go into bankruptcy protection as a strategic move. One of the biggest costs they have compared to the foreign auto producers is the overall benefits package. Even when sales were strong, it was estimated that there was about $1,700 of retiree benefit costs for every unit sold compared to $57 per unit for Hyundai for example. The Big 3 have been in business for almost 100 years so they have lots of retired workers who have incredible pension and health benefits because of the union contracts that were signed in the good times.
Bankruptcy protection would allow the companies to really re-negotiate the labor agreements they have and to also greatly reduce their retirement costs. The UAW still doesn't seem to get it however.
Wayne
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