General Motors has announced that it plans to gain $4 billion to $5 billion in savings in 2010, mostly due to the recent deal inked with the UAW. The Detroit-based automaker says that 2008 could be a challenging, but expects the market to rebound in 2009 and beyond.
“We’re delivering on the turnaround plan we established in 2005 and have exceeded expectations on virtually all counts,” GM CEO Rick Wagoner said.
Because of the concessions given by the UAW in the latest contract agreement, GM plans to eliminate $5 billion in labor costs by 2011. Starting next month, 46,000 hourly employees will be eligible for retirement. In addition, GM will continue to grow in overseas markets.
GM will continue to see savings due to the UAW-run retiree health care plan, which will save the automaker $6 billion a year by 2010.



01/17, 5:49 PM
posted by:
autonut
This translates in increased capacity in Mexico, since Canada is as expensive as US. It probably also mean more Korean content in showrooms. Hopefully, those who will become underemployed will be able to move south and work for Hyundai or Honda and Toyota new production facilities.
01/17, 6:40 PM
posted by:
SwerveEarly
46,000 retirees next month x $4,000/month=$1.84B/month
Thats some serious legacy costs. Thats why I buy Korean they’ll never pay for some lazy union guy to retire after a lifetime w/them.
01/17, 6:49 PM
posted by:
GIUGIK1
The idea of increased profitability always sounds good to me.
01/17, 7:37 PM
posted by:
corvette
as long as they know what there doing.
01/17, 8:25 PM
posted by:
400horseSS
typical dumbass comment by swerve early
01/17, 10:17 PM
posted by:
F451
I’m not part of any union, but I also know that there are both good and bad people in the unions as there is any profession. Some the of the worst offenders of pay scales versus output are executives, so where is the balance here? Americans should be concerned about other Americans. To demonize the unions is as much propaganda as saying white collar crime is a lesser offense.
01/18, 12:07 AM
posted by:
400horseSS
since you claim to be a doctor Deantj, those fat ass cheez whiz eaters are the ones who support your overpaid (nino brown) ass, doctors are legal drug dealers anyway……………anyone disagree ?
01/18, 12:15 AM
posted by:
Impulsive
‘johnnycanuck’, you get a gold star.
01/18, 12:22 AM
posted by:
DeansterTJ
^ above comment directed at 400SS
01/18, 12:24 AM
posted by:
400horseSS
clap clap clap you pill pushin pimp
01/18, 12:26 AM
posted by:
400horseSS
and thats why you still (and other like you) just write scripts all day long, try watching intervention pussy
01/18, 12:29 AM
posted by:
400horseSS
bitch
01/18, 12:35 AM
posted by:
400horseSS
and im not the typical fat ass union worker, your stupid ass can’t see they’re phasing those old farts out…..to keep your office full and hand out those free samples of new drugs that pill pimps like you love to hand out like halloween candy
01/18, 1:00 AM
posted by:
AxeHead
Only one thing wins, for GM, for Ford, for Honda, for Hundai…I don’t understand why the obvious is so hard to understand. It’s quality.
Build me a quality car that runs reliably for 15 years with only regular maintenance and I’ll buy it.
Design and performance do work into the equation but the market is showing clearly that quality wins.
Now, if I had a choice between 2 cars and all things are equal, I’d buy American/Canadian over Asian/European to support my own.
But in the end – quality wins.
01/18, 6:43 AM
posted by:
V2
SwerveEarly, so you buy Korean cars?????!!!! You would have to the most boring person on the face of the earth, and stupid as well to tell people that you do???? In Australia only losers and single mums drive Korean cars.
01/18, 9:24 AM
posted by:
DeansterTJ
No 400, I don’t exactly pay attention to what they’re doing down at your ****ty plant. I wouldn’t know if they’re replacing the oldtimers with young people or if you’re all sucking each other’s ****s at breaktime. I have a feeling it’s the latter….
So I see you’re stuck on the pillpushing thing. You’ve probably been stung by the soaring costs of preparation H and now you’re bitter….Chin up you little cumreceptacle, ask your whore mother for some help paying that! Or, go to the union and file a grievance!!! LOL! Dickriding commie!
01/18, 9:30 AM
posted by:
chadsuke
When good paying jobs for the working class disappear it is a tragedy. It’s coming to the point that someone will have to have a college degree just to have any semblance of a middle class life.
I read some where that the top 1 percent of the population had 22 percent of the income last year (which is the same distribution as 1929 btw). In 1970 the top 1 percent had only 9 percent of the income. The top 1 percent are those house holds that have a combined income of about $350,000 per year. The middle class is shrinking.
It’s coming to the point that the only way to maintain decent wage, low education manufacturing jobs is to institute tariffs, big fat tariffs, on imported goods and to a lesser extent on goods manufactured in the U.S. but by a foreign owned company.
01/18, 9:45 AM
posted by:
chadsuke
Here’s a 2006 breakdown of income distribution.
Bottom 10% $0 to $10,500
Bottom 20% $0 to $18,500
Bottom 25% $0 to $22,500
Middle 33% $30,000 to $62,500
Middle 20% $35,000 to $55,000
Top 25% $77,500 and up
Top 20% $92,000 and up
Top 5% $167,000 and up
Top 1.5% $250,000 and up
Top 1% $350,000 and up
Source: US Census Bureau, 2006; income statistics for the year 2005
01/18, 9:46 AM
posted by:
400horseSS
great comeback as usual dean tugjob
01/18, 9:58 AM
posted by:
1c3d0g
Good. They need a break from the f*cking UAW. If it wasn’t for their asinine requirements, GM would be a lot more competitive price-wise against imports.
01/18, 10:45 AM
posted by:
DeansterTJ
Anytime 400 SwordSwallower
01/18, 12:24 PM
posted by:
SwerveEarly
I got edited WTF.
My comment went on to say that buying Korean or Mexican or any other 2nd or 3rd world country is supporting horrific living standards if not sweat shop labor.
I will only ever buy a car built by people with a decent standard of living. Not riding a gravy train like some think that a union worker gets but a middle class std is fair.
Not to mention the damage to the environemt is a crime against humanity as the Korean government, is so corrupt and corporate friendly they will let 10 times more **** slide then EU, US, or Canada will.
01/18, 12:44 PM
posted by:
CTS DRIVER
holy crap guys, hahahahahahahaha
01/18, 12:56 PM
posted by:
Impulsive
‘Deanster’, hilarious.
01/18, 3:17 PM
posted by:
Scarface03
johnnycanuck indeed gets the gold star today. Good stuff.
There are **** loads of money paying the ultra elite of the corporate world, that’s for sure. It reminds me of the ultra elite professional baseball players. Even assuming there’s no disputing a ballplayer’s talent, even at his prime, 95% of his professional life is spend standing in a field or sitting on a bench…. and only in good weather, I might add.
For those big-wigs at the top of the corporate world, who’s to say the really talented ones don’t deserve the big bucks. It takes more than I know I’m up for to run a multi-billion dollar company. But like johnny says, the good are certainly mixed in with the bad, and they certainly don’t deserve it as much.
Maybe it’s just easier to rag on the unions, because maybe we can relate better to the common man. All of us can appreciate the long day’s work we put in at our jobs, and if we can’t do the job any longer, or if we get lazier than the guy next to us, we know our paycheck doesn’t keep getting paid.
As for GM. Good for it for doing what needs to be done.
01/20, 6:47 PM
posted by:
v8havoc
tax companies that outsource their jobs so much that they bring the jobs back home
02/01, 1:06 PM
posted by:
jackjimturkey
axehead: you’re right