General Motors closing 1,200 dealers, 137,330 JOBS GONE

[AAAintheBeltway]

Quote from CaptainObvious:

If every person that bought a car drove it for 200K miles before they traded it, all auto makers would be out of business. The problem isn't how long they last, it's how much they cost. The automakers have priced themselves out of the market.
To remain profitable they need people to trade every 3-4 years. With prices as they are, that can't happen anymore. With every trade people became a little more upside down and you can only roll so much of that in to the next vehicle. At some point you've got people with a 500 dollar a month car payment for a f'n Grand Am. Until prices come back to a place that reflects what the average worker can afford the entire industry will see poor sales. OR, wages need to increase and reflect the rising cost of living.

Great points. At least the UAW members will keep their jobs and cushy benefits.

 

[seneca_roman]

Horse and buggy makers probably whined too when there time was up.

Constructive destruction at work; we'll be better off for it just look at all the capital GM destroyed in the past 20 years or so.

Give that capital to someone better able to use it.

Seneca

 

[TraderZones]

Quote from AAAintheBeltway:

Great points. At least the UAW members will keep their jobs and cushy benefits.

If I opened my own car manufacturer, the FIRST thing I would do is hire a few key leaders from Honda & Toyota (companies that know how to make a really good car), then hire some Western but mostly offshore automotive designers, and all production would be done in a non-union, lowcost company. Maybe China, maybe Vietnam, maybe Philippines, whatever. Of course, automated to the max.

There is something wrong with an American HS dropout, who expects $60/hour+ in total compensation, to help tighten bolts, and job bank receiving 95% of salary for doing nothing for 2 years.

About the only industries still getting company pensions were govt workers and carmakers. And carmakers also get lifetime medical. No wonder GM, Ford and Chrysler lose money on every sale.