Hope Nissan is watching this...

daisuke149 · 06-29-2010, 08:49 PM

Quote:

Originally Posted by Lug

This

The Gov bashed GM for selling big SUV's and Trucks whilst they should be selling more hybrids/small cars. News flash...the only automobiles GM was actually making a profit on were the big SUV's and Trucks. Until very recently, Toyota didn't make a penny on the Prius, it's a status symbol only. The Gov is pushing GM to sell thing it doesn't make profit on and get rid of things it's customers are willing to pay enough for to make a profit. That's the difference between the government and private industry running a business. "Profit" is just an evil capitalist pig word to the government.

you cant blame the government for that. infact blame GM. BLame the unions for making it hard for GM to make a regular small car and turn a profit on it. Blame GM for not making a product good enough where people would want to pay a little more, thus earning them a profit.

Its always easy to say "government fault... yep them. everything their fault etc etc"

and p.s.. they do make a profit off the regular stuff, just not as big of a margin.

Lug · 06-30-2010, 10:49 AM

Quote:

Originally Posted by daisuke149

you cant blame the government for that. infact blame GM. BLame the unions for making it hard for GM to make a regular small car and turn a profit on it. Blame GM for not making a product good enough where people would want to pay a little more, thus earning them a profit.

Its always easy to say "government fault... yep them. everything their fault etc etc"

and p.s.. they do make a profit off the regular stuff, just not as big of a margin.

I'm not blaming the Government for GM's past mistakes, just the future ones!

Seriously, union compensaion over the years plus the recession is what's killed GM. You can't compete in the $12K car market if your labor costs are $1500 more than your competition's. That let's your competion have an extra $1500 to improve their product. You have to go up to more expensive SUV's, etc because it reduces the percentage of cost due to labor per vehicle. Past compensation practices weakened GM's ability to survive the recession.

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