so, if the big 3 get bailed out

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decrease retail prices

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increase production of "environmetnally friendly" automobiles

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Although environmentally friendly can mean just about anything, those two goals seem kind of mutually exclusive given the current setup of automakers.

i heard something on a radio commercial update from my normal programming that said something of "slashing costs"....maybe they meant production costs (which would make more sense)

i just couldn't see how they could slash the costs of newer models

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There going to have to if they want to sell any. It's the only way to minimize losses.

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they could always get more leiniant on lending practices


I kid, i kid


seems like the ripple effect from that could be huge

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the ripple effect will be even bigger, and prolonged, if we keep subsidizing failure.

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i agree, and at least they have publically recognized some of their falures, BUT is reducing sales price the only way to reestablish a solid foundation?

The UAW will have to make concessions on all fronts, otherwise they will all be out of jobs. This would lead to reduced costs and make what they stated a possibility. However, no matter what they lower the MSRP to, the dealers will sell the cars they own at whatever price they want. Prices are way down as it is and they still aren't selling so I'm not sure how much that will help them.

I read somewhere that GM does not have a single new product rollout or significant redesign planned for 2009.

Cue the anti-Union posts, like GOP clockwork..

I love how the companies we have the most distaste towards are the ones who A) pay their workers and B) actually produce something.

The GOP will not be satisfied until it villianizes every worker who makes enough money to not live paycheck to paycheck.

So anyway, the unions already made major concessions a year ago and they will be making more concessions if they want GM to stay afloat. By 2012, Toyota will be spending more on labor costs than GM, unless it can successfully open that new plant up in Mississippi where they want to have a top pay of $14/hr with no benefits.

The only thing that would make the GOP happy is for GM to default on the obligations and guarantees they already made to retirees.

I'm not even for the bail-outs, but I'd bail-out GM before I would bailout these secondary financial institutions. Unfortunately Germany and Japan are subsidizing their car industries as well. Hopefully people will be able to look beyond the catch-phrases and hate-mongering and come up with a real solution.

talking to a client of mine that owns a car dealership he said to look for a huge discounts around Feb - March on 2008 models. he said right now they can't even sell them for invoice with incentives and the 2009's are rolling in daily. so if you are in the market for a new car or truck you might want to hold off for a few months.

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I've heard this mentioned several times (about the costs equalizing), do you have a link?

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This article is kind of old so there were some more concessions that are dated after this article and of course does not include the new concessions that will be made in order for GM to get the bailout:

LINK

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Some of Toyota's U.S. plants are now more than 20 years old, and a growing number of its workers are paid the top wage of about $25 an hour. That's less than Detroit's veteran union hands make now, but a contract inked last fall will enable U.S. automakers to replace many highly paid employees with cheaper workers. By 2011, Toyota's cost advantage over Detroit could disappear.

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Toyota is worried. Two sources close to the company say that by late 2009, Toyota's 23-year-old assembly plant in Georgetown, Ky., where most workers are at the top of the pay scale, could have the highest labor costs of any auto factory in the U.S.

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