LAT: Big 3 Find More Level Playing Field Abroad

[rumpel]

Unlike in the U.S., they are profitable overseas, where governments pick up much of the cost of workers' healthcare and retirement bills.

By John O'Dell, Times Staff Writer

The Big Three U.S. automakers complain that huge pension and medical bills put them at a cost disadvantage with their Asian and European rivals. But overseas, where these companies compete in many of the same markets, the financial imbalances tend to even out.

Both General Motors Corp. and Ford Motor Co. make money overseas. For the first nine months of this year, GM posted a $300-million profit from its foreign auto operations, while Ford booked $415 million.

But overall, GM and Ford no longer make a profit on their auto operations in North America. Part of the problem is that many of their offerings simply don't click with buyers in the United States — the world's biggest car market.

However, Ford and GM also are at a disadvantage when it comes to pricing. With much of their auto production located for decades in the U.S., they have built up a huge pool of retirees to support. The cost of healthcare and retirement adds $1,600 to the sticker price of each GM vehicle and $1,000 to every one sold by Ford.

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http://www.latimes.com/business/la-fi-autos31dec31,1,5640613.story?coll=la-headlines-business

[Bonhomme Richard]

1. It makes you wonder why Big Corporations are not...

screaming for national healthcare.

[applegrove]

2. Why health care needs to be national.