FYI (in case you guys didnt see the official article):
2008 GM Vehicle Sales
Chevrolet 1,801,131
GMC 376,996
Pontiac 267,348
Saturn 188,004
Cadillac 161,159
Buick 137,197
Hummer 27,485
Saab 21,368
Total 2,980,688
I would say get rid of GMC also... no need for two brands for the same vehicle. Definitely drop Hummer... drop Saab if it isn't big overseas. If Buick is truly profitable overseas just move it there all together... I hardly see anyone driving a Buick here in the U.S. that isn't in retirement. Every time one gets in front of me I know it's going to take a little longer to get to my destination
Anyone know anymore about GM benefits? Are they going to drop them to be closer to the level other manufacturers have in order to reduce costs?
Here's info from a 07 article:
Health care is the biggest chunk. GM (Charts), for instance spends $1,635 per vehicle on health care for active and retired workers in the U.S. Toyota (Charts) pays nothing for retired workers - it has very few - and only $215 for active ones.
Other labor costs add to the bill. Contract issues like work rules, line relief and holiday pay amount to $630 per vehicle - costs that the Japanese don't have. And paying UAW members for not working when plants are shut costs another $350 per vehicle.
Here's one example of how knotty Detroit's labor problem can be:
If an assembly plant with 3,000 workers has no dealer orders, it has two options. One is to close the plant for a week and not build any cars. Then the company still has to give the idled workers 95 percent of their take-home pay plus all benefits for not working. So a one-week shutdown costs $7.7 million or $1,545 for each vehicle it didn't make.
If the company decides to go ahead and run the plant for a week without any dealer orders, it will have distressed merchandise on its hands. Then it has to sell the vehicles to daily rental companies like Hertz or Avis at discounts of $3,000 to $5,000 per vehicle, which creates a flood of used cars in three to six months and damages resale value. Or it can put the vehicles into storage and pay dealers up to $1,250 apiece to take them off its hands.