Quote:
Originally Posted by Dragoneye
The cost-differences between GM's workforce, and say...Toyota's...is virtually nothing now. Or else it will be in 2010 thanks to a new contract that was signed in '07. Somebody...somewhere...said it was even less expensive than Toyota's labor costs...now, I don't know about that...but they have decreased the gap there to almost zero.
And CAFE, however much we hate it...isn't doing a whole lot to hurt them compared to the economy. Especially not since they have (or are in the process of getting) access to an already-approved 25 billion specifically for fuel-efficient vehicles. In fact, that money was part of the CAFE legislation in the first place...
This thing is being called a "bridge loan" because that's what the automakers want it to do: carry them over to 2010, when they shed all these crazy-ass costs and the economy is partially healed. Suddenly; poof! They're profitable. No...it's not that simple...but that's the idea. 2010 is the magic year for the automakers...if they can get there; they'll be *almost* home-free.
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Yes, they have to wait until that 2010 UAW contract kicks in to be competitive.
And as far as CAFE, Congress is demanding higher fuel efficiency.
http://www.autoblog.com/2008/11/17/s...o-receive-aid/
Gas prices will certainly go back up as we climb out of recession.
IMO, this government involvement very well could heavilly influence what vehicles will be manufactured in the near future.
One of the biggest issues is the $25 billion will not take the big 3 into 2010, they are going to come back for more to make it to 2010.
