Originally Posted by 742
Hourly labor manufacturing costs are higher in Germany than they are in the United States. Nevertheless Mercedes Benz, BMW, VW and Porsche are solid companies. And Germany is the world's second largest exporter.
The problem is management, not labor. And it has been for decades.
Until the revolving door of short term MBAs goes away GM is going to lose money. And the United States will continue its slide to third world status.
The UAW was still certainly a factor. Management largely, but you still can't ignore the UAW contribution.
But, thanks to the bankruptcy GM worker wages are now roughly equal to Toyota's US workers. The Jobs Bank is gone( that went away in 2007) and the UAW is now responsible for the health benefits for their workers. Shedding a lot of costs from GM's finances. Q1 should bring in a small loss or a small profit. 2010 overall should bring in a profit. All of GM's divisions are profitable right now with the exception of Opel.
Originally Posted by TMNT
GM paid back the loan amount they were required to....the other billions of dollars still owed will be given to the U.S. government as stock once they start an IPO. The U.S. government will more than likely get all of their money back plus some when that time comes.
Yep exactly. GM used the money they gained from the equity swap to pay back the loans. The government didn't give them more money to pay off the loans. They used the money they already had when they gave a 60% stake to the US government. That money will be made up when the IPO is issued and the US slowly sells their shares.