"Sense and Sensibility"

Prompted by Dorsal’s posting on the Big Two and the contrast it highlights relative to Toyota, I looked back at our 2009 predictions on the fate of the then Big Three. As a group we seem to be generally on track with our forecast but there may yet be a couple of surprises. In that regard I am posting a photo from last week’s Economist of GM’s newest vehicle. With the Volt predicted to be priced out of the range of the average consumer, GM has obviously scaled down its expectations. On the issue of the current state of negotiations between Chrysler and the CAW, consider what the union is being asked to give up: extended medical coverage, semi private hospital coverage, out of country medical coverage, legal assistance, and daycare coverage. In addition they are being asked to accept a reduction in shift premiums and accept an increase in the amount they contribute to their own health care benefits. Kind of underscores Dorsal’s point doesn’t it? Andy