Originally posted by uzlessSo in other words, better not to have a huge failing in quality and reliability in the first place than to have to earn back a strong reputation... you've heard the acronym Found On Road Dead and Fixed Or Repaired Daily, I'm sure, and probably don't like them. But look at Hyundai, they had terrible quality and have now given huge warranties of 100,000 miles or i forget howmany years (10 I think) whichever comes first. Well they've climbed somewhat slowly but surely, and the US may also eventually regain more respect for quality, but where is the back-up?
Um, explain how GM is going to LOWER their health care costs if they lay off staff and produce fewer vehicles.
They will have less vehicles, have lower income and health care costs per employee will INCREASE when it comes to paying retirees.
The only thing GM can do to reduce their retiree legacy cost is to reduce how much money they pay them. It's th ...[text shortened]... t the side of the road. Keep a tally of import vs domestic. You may be suprised.
As for the test on which cars are on the side of the road more often, surely you must concede that one reason it is not mostly american cars is because american cars have lost market share to many foreign rival companies, they may be sent to a junkyard sooner than a honda or toyota that survies over 200,000, and a lot of american cars are used as fleet vehicles for rental companies and insurance companies that only have use for them for recent model years.
A better test is how many people keep an american car over 100,000 miles and how much are they worth at that point, and does the company back up its warranties (warranties are even guaranteed by the us government to help during the crisis, you would think the warragies would be extended for longer lengths to take advantage of that...)