…”Ontario Premier Dalton McGuinty says he’s confident General Motors Corp. will turn its financial troubles around and pay the province back billions of dollars that were given to the company to ensure the success of its restructuring plan. “We’ve really pushed them up against the wall in terms of the conditions we’ve exacted,” he told a scrum of reporters at Queen’s Park“….
So this would be after GM somehow obtains profits from a new stable of small cars (which have historically had razor thin profit margins) whilst simultaneously attempting to meet politically motivated environmental policies handed down from the white house and protecting CAW jobs and benefits? I wait with bated breath…..
Nothing to see here folks – move along, move along….
Agreed. Profits are too slim because wages are simply too high. The concessions made by GM, Chrysler et al. really amount to diddly squat. If they honestly want to compete with foreign automakers, unions are going to have to keep their wages in line with the competition. Unfortunately, that would probably result in a lot of people realizing their living outside of their means. And so, in an effort to keep that big house, or second car, the unions will press to keep the status quo. Even if the Volt is the best car on the market, the profit margin will be too high to make a serious dent in the damage done.