Reply #197: as the article points out, costs dropped 6% 2007-2008, & will continue to drop until 2010.

[Hannah Bell]

"But GM, which negotiated the four-year deal that serves as a template for UAW deals with Chrysler and Ford, says its total hourly labor costs dropped 6 percent this year from pre-contract levels, from $73.26 in 2006 to around $69 per hour. The new cost includes laborers' wages of $29.78 per hour, plus benefits, pensions and the cost of providing health care to more than 432,000 GM retirees, GM spokesman Tony Sapienza said.

The total cost will drop to $62 per hour in 2010"


That's $5/hr drop in the last year & another $7/hr by 2010.

PS: labor is <10% of the cost of a vehicle.


Maybe they could use some of the capital they're putting into russia, india & china to bridge this gap until 2010.

Seen this movie before.