And as said...the work over of gm was renegotiate with the unions.
Union wages plus the benefits was about 70 bucks an hour /somewhat high if one wants to be turn some profit.
Chrysler was also failing due to the same problem.
So lets do some math shall we
GM had about 250 thousand employees.
250,000 times 40 {hours a week} times 52 {weeks in a year} times 70 {dollars] comes out to 36,400,000,000 dollars paid in wages per year. Thats 36 billion dollars.
As we can see by negotiating with the union /eliminating tens of thousands of workers /and get that 70 dollar an hour wage and benefit figure down we are talking billions that the company doesn't have to pay each year...which is what slowly started to put em under...due to the sharing the wealth bullshit.. Now they can keep afloat as they have been doing.
The only other course of action would been to have raised the price of the autos greatly..but then they wouldnt sale...and since sales would be down and the union boys still on the clock this would raise the price of each vehicle further to offset the cost to manufacture ...which means they would have to raise the price yet further which would further reduce sales...you get the picture...So as you see there was nothing they could do as the unions ruled not the corporation itself.
Wow, holy shit...
I don't even know where to begin...
Let's start with the $36.4 billion in salary.
In 2008 GM sold just under 3 million cars and trucks. I'm using the 2008 number because that was just before restructuring. They sold slightly more before and about a million less today.
But with only selling 3 million cars, the cost of labor for each car would be well over $12,000 using your numbers
The actual cost of labor per car in the US is about 8% or $2000 per car, NOT $12,000.
That $2000 is calculated by using $66.60/hr wage time 30 hours to build each car. That is the average cost for all 3 of the big manufacturers in the US.
Next is the number of GM employees. 250,000 is world wide. You need to remove the non-union employees overseas and you also need to remove everybody who is not on the floor building the cars because they are the only ones in the union.
There are only 48,500 UAW workers at GM
Next is your $70/hr rate.
The average GM UAW employee makes $56/hr. That is wages and benefits (total overhead)
Ford actually pays $58/hr on average. That's $2 more per hour for their union labor, so why didn't they go bankrupt?
So the total number of UAW workers at GM is 48,500 averaging $56/hr total compensation, meaning that total dollars per year is $2,716,000 for the union employees
:24:
How the hell am I suppose to take you seriously???