Thursday, October 20, 2005

More on the GM Welfare State

Following up on yesterday's commentary on the struggles of the US auto industry, George Will has some commentary today on GM's recent moves.

Some incredible facts:
  • GM annually pays out $5.2 BILLION in health care costs, for $1.1 MILLION employees and retirees.
  • $4.0 B of that goes to RETIREES - who help generate NO REVENUE. Now, I'm not the sharpest knife in the drawer, but what incompetent business leader EVER agreed to that?
  • GM workers pay ZERO in deductibles, and only slight co-pays. See my question, above.
I love this quote, from Delphi's CEO: "When you buy a Hyundai you get a satellite radio as your option, but if you buy a Chevrolet you get social welfare as an option. Long term, the customer is going to desert you if you try to price for your social-welfare costs."

I'll take the satellite radio, folks.


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