Web-site/URL: http://news.yahoo.com/s/ap/20100111/ap_ … to_show_gm
Before we get all jumpy and excited, let's wait until this actually materializes
really?
hmm. i heard somebody was reintroducing the Fiat. i'll buy one.
Fiat has bought Chrysler.
GM is going to build new plants in Canada.
This is not big news as Canada has national healthcare and therefore provides less of an expense to the automaker. The US better catch up or be left behind. You could consider nationalized healthcare coverage as another incentive by the government for business' to continue where they are instead of shipping the jobs overseas.
The commitment to build factories in Canada was done long before the healthcare debate.
Exactly and why do you think that was? It is far cheaper to build the cars there because the overhead is much less due to their national healthcare system. The big three always knew this and vacated the jobs out of Detroit to save money. Why would anyone with half a mind for business consider it any other way?
It could be a combination of that and the fact that the Canadian Unions are more willing to make concessions to allow the company to prosper.
With GM having to place at least $1,500.00 on every model to cover healthcare coverage for working and retired autoworkers it is by far one of the greatest benefits they provide as a loss. That alone is a great incentive to the carmaker to build cars out of country. Toyotas experiment in US manufacturing is making them turn towards Mexico as a cheaper source for labor.
In recent negotiations with the UAW and GM the workers are the ones that took the biggest hits in benefits and wages while the executives continued collecting their bonuses for their wonderful efforts.
The Unions are always easy to pick on as they are an immediate expense that can be blamed for the failure rather than the poor planning of the companies brass.
Why is GM building new plants at all? While I know that the creation of jobs is a good thing for workers and consumers, why are they building more plants elsewhere?
It seems somewhat unreasonable in my mind when their business was failing just months ago.
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