GM and Ford loosing money on every vehicle sold
GM and Ford loosing money on every vehicle sold
GM and Ford lose a lot of money on every car that leaves there showrooms. This was revealed in a research conducted by Harbour Consulting.
“G.M. has two to three people sitting at home for every single person working today, and that has a huge legacy-cost impact on them,” Laurie A. Felax, vice president of Harbour Consulting, told an automotive conference on Monday. “It wipes away any profit that they have.”
Both G.M. and Ford are struggling with multibillion-dollar costs for retiree health care and pension benefits under contracts with the United Automobile Workers union
North American car operation is bleeding a few hundred million dollars every month.
General Motors lost an average of $1,227 for each vehicle in the first half of the year in North America, while its cross-town rival, the Ford Motor Company, lost $139, according to new research from Harbour Consulting.
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