[CommerceComet]

I think that GM is holding on to January, 2009 when Baraq will save them (and Ford, too) in order to save the UAW members' ridiculous benefits. In essence, all the taxpayers will be penalized for the stupidity of the management of GM and Ford.

I think that in the Obamanation of the next four years, it will be very hard for the non-union auto manufacturers to remain so.

[montag813]

If GM fails, won’t the price of imports go up?

[RetiredArmy]

Local talk show guy was talking this morning. He quoted from a 2006 article from the Wall Street Journal. Said that Ford had a team, called the Blue Team, in middle 2000's too look into building small, gas saving cars. They disbanded the team after they discovered that LABOR costs would PROHIBIT them making a DIME on these cars. That every one of those cars would be built AT A LOSS before it left the factory. To high light that, he said in 2006, THE LABOR COST FOR EACH auto worker, salary, SS taxes, insurance, pension, bla, bla, bla, ON AVERAGE cost $81.18 per hour in 2006. I has to be much higher today. So, EVERY auto worker is worth $81.18 PER HOUR in costs, so that was the reason they could not make cheep cars and make any profit on them.

[cyclotic]

What would happen if GM were to cancel all union contracts effective close of business today. All employees would be eligible for rehire at substantially the same wages provided they were non-union.

I would predict that mass chaos would occur for a few days then the employees would trickle back in and eventually GM would thrive.

Thoughts?