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“GM supports thousands upon thousands of retirees. In 2004, health care cost GM $1,525 per vehicle, compared to Toyota's $201, according to the management consulting firm A.T. Kearney. And health care costs increase with age. Toyota had only 250 retirees in North America in 2004. GM covered about 340,000, including spouses.”
Every large, old company in the US has this problem. Through absolutely no fault of their own it’s just not a level playing field when competing with younger companies. I continue to argue that a system where you get your medical insurance through your employer makes no sense.
Whoever this guy is, he hasn't had the same experience I and many others have had with the lack of quality in the Big 3's cars. I have seen a clear and major diff in quality between the Toyota & Nissan cars I have owned vs the GM, Ford & Chrysler cars I have owned.
My Toyotas and Nissans have given years of virtually error-free service with only slightly more expensive initial purchase costs.
For instance, I LOVE MY CORVETTE BUT...
I bought it slightly used and did get a copy of the service history on it..with only 5k mi. it has already had a flywheel replacement, radio replacement, major wearing of the seat cushions and leather, and lots of other smaller work. I don't have any faith in my dealer's service departments. I know this is a major complaint of many Corvette owners.
I bought a virtually new 05 Ford Explorer and within 2 years it needed:
-new timing chain
-new gas tank - gas gage quit working
-new rear axel
-new rear door panel because of cracking (done 2 times)
-other small stuff - while most of this was under warranty, it lived much of it's life while I owned it in the shop.
Last but not least-my wife's brand new 08 Sebring retractible top convertible leaked in light to moderate rain even after three trips to the dealer.
An inspiring read that the big three should have read to congress. I believe although they did come to congress unprepared, the next time they show up they will have a plan that will fly with congress. I hope that all 3 come through these hard times, as I believe at least 2 of them GM & Ford are building some of the best cars on the road today.
A very good "warts and all" analysis of the current struggle of the American auto industry. Many people and even some on this forum have denigrated GM/FORD as examples of outdated technology and shoddy workmanship, while this may have been valid in the dark days of the '70's it's certainly not true today.
I find it interesting that people will spend $5-10 thousand more for a Honda/Toyota/Nissan which is a virtual match for an American made car and sing it's praises for it's reliability, creature comforts, etc, whilst out ever realizing that they spent a lot more money for these questionable/dubious improvements.
In these troubled times, I would like to suggest to the many people who previously opted out on buying American cars, reconsider, as the job/401k/house/pension/retirement, you save, could very well be your own.
No, not completely true. Very few large old companies pay the entire amount of their retirees' medical premiums.
I'm a retired police officer...I have a pension over $60,000 and 100% percent medical for me & my wife... and if I should die, she continues to get my FULL pension until she dies or remarries... I'm 66 now..(Maybe I should marry a nice blond 22 yr old) she would be getting that pension for another 50 yrs...
With the current economy does this mean my pension is in jeopardy ?
Gm needs to drop about 5000 dealerships.. and is it just me or do they have 3 different branded models for every one car and truck? (except the vette lol)
No one is denying GM's importance to the history of car development and sales throughout the world in the past, present, or future. I hope they make it because we can always use more competition in the market.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.