Sergio Marchionne, the head of Italian automaker Fiat, told the Globe and Mail that Chrysler has until the end of this month to substantially cut its labour costs as a condition of forming a partnership. Full Story
This should come as no surprise. What will come as a surprise would be to see the union actually do something sensible and advise auto workers to take a drastic pay cut and get involved in the cost savings if they want to keep their jobs.
If you read some of the comments at the original CBC story, or any related story you will quickly see that the public is not on the side of the car companies or the unions. The general public, like me, is sick of bail outs for these companies, which manufacture inferior products. Not to mention outrageous pay for people who, lets face it, are screwing nuts and bolts together. No wonder no one can afford to buy a new car. These companies think they can woo the public with their old style sales and cash-back offers, but those days are gone. People are more savvy and are keeping their money in their pockets, that is if they have any money.
Yes, people will buy new cars again, especially in a year or two, since so many are putting it off right now. But what kind of car will they buy and from whom will they buy it?
Take a second and give your opinion in our new poll over in the right hand column. Do you think GM or Chrysler will go under?
No comments:
Post a Comment