HappySqurriel on 10 October 2008
| akuma587 said: Screw American car companies. Their terrible choices have earned them the right to fail. |
Although I agree with you, the Government of the United States will never let them fail ...
Back in 2005 GM had 1.5 times as many pensioners as it had employees and GM doesn't have a fully funded pension plan so these people are paid out of revenues. This is one of the core problems GM (and all American automobile manufacturers) have had over the past several years because (for their manufacturing costs) their cars are excellent vehicles but the high unfunded liabilities increase the purchase price of the vehicle to a level where it can't be competitive.
The government will not let these companies fail because when they do their (roughly) 1.5 Million retired (and near retirement) employees will be without a pension ...
