Quote:
Originally Posted by classicman
re: toyota, they don't have the retirees to pay yet either.
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More half truths. When the employee retires, GM stops paying. Why? The retirement fund is fully funded. No legacy costs exist when management is honest and responsible.
You conveniently forgot facts to post a myth. GM stopped funding those pension funds in the 1990s. Therefore GM still owes that 1990 money - with interest. Toyota does not have this problem because corporate management was honest. Toyota funded their pension funds when required.
Anyone who believes GM has legacy costs is forgetting facts to promote a myth. GM's legacy costs are directly traceable to people, including Rick Wagoner, who stopped funding the pension funds to avert the 1991 bankruptcy. GM was four hours away from bankruptcy in 1991 because their problems today have existed that long ago. They stopped funding pension funds so that management could reap bonuses for ill begotten corporate profits.
Damning fact - GM cars sold for less than what they cost. GM profits were estimated at about $100 to $200 per vehicle. That was not legacy costs. That was bean counters doing what is necessary when the purpose of a company is its profits.