Quote:
Originally Posted by johnso29
I don't think that is going to last. If they want more govt help it will have to go, and if they don't then they will have to file BK and then it will most certainly be gone.
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Yep. GM, especially, is basically a health care insurer that happens to make vehicles on the side. I haven't reviewed their financials myself, but I've heard from reliable sources that for every vehicle they make, they lose money. IOW, at this point, its not a matter of producing more vehicles to reduce the fixed cost per unit to eventually create a profit - the numbers just don't work. Every single vehicle that gets emitted at the end of the production line represents a loss to the company.
These costs will have to be shed for there to be a future for the company.
Honestly, the airlines are in a similar boat. The trend (see WN) is to not provide a pension anymore. Some legacies might potentially force themselves into bankruptcy to then be granted some relief from the existing (already cut down) pensions.
The new guys getting on board - fuggetaboutit. Better be conservative with your money going forth.