Comments on: Learning from the big three automakers http://www.kevinmd.com/blog/2006/05/learning-from-big-three-automakers.html Tue, 14 Feb 2012 20:59:00 +0000 hourly 1 By: John J. Coupalhttp://www.kevinmd.com/blog/2006/05/learning-from-big-three-automakers.html#comment-63370 John J. Coupal Wed, 24 May 2006 13:55:00 +0000 http://clients.emmense.com/kevinmd/2006/05/learning-from-the-big-three-automakers.html#comment-63370 GM employees and retirees have been reported to be " outraged ! " that they now have to pay a co-pay when getting medical/dental care.<br/><br/>The UAW was smart enough to get GM to cover all medical (+ dental ?) expenses in the past. GM went along, as long as selling vehicles covered the cost.<br/><br/>What other employees/dying retirees have such lavish health care? Other than Congress. GM employees and retirees have been reported to be ” outraged ! ” that they now have to pay a co-pay when getting medical/dental care.

The UAW was smart enough to get GM to cover all medical (+ dental ?) expenses in the past. GM went along, as long as selling vehicles covered the cost.

What other employees/dying retirees have such lavish health care? Other than Congress.

]]> By: Anonymoushttp://www.kevinmd.com/blog/2006/05/learning-from-big-three-automakers.html#comment-63363 Anonymous Wed, 24 May 2006 06:45:00 +0000 http://clients.emmense.com/kevinmd/2006/05/learning-from-the-big-three-automakers.html#comment-63363 Health care and so-called "legacy costs" are NOT bankrupting General Motors. General Motors is. If General Motors can't design, engineer, and market a car that consumers want to buy, they put all of their employees in financial peril.<br/><br/>Why are Toyota and other foreign manufacturers selling their cars like hot cakes? Because they also know how to market and advertise an emotional purchase!<br/><br/>My observations as a marketing professional in the Detroit area make me worry about the industry. The GM executives, fat bonuses in hand, work with advertising agencies that operate and innovate like they are advertising George Jetson in the 1950's. Their "product" would make me laugh it didn't make me cry.<br/><br/>Yes, retiree benefits are very generous. But GM has no one to blame but themselves for the financial condition of their firm and Delphi. Health care and so-called “legacy costs” are NOT bankrupting General Motors. General Motors is. If General Motors can’t design, engineer, and market a car that consumers want to buy, they put all of their employees in financial peril.

Why are Toyota and other foreign manufacturers selling their cars like hot cakes? Because they also know how to market and advertise an emotional purchase!

My observations as a marketing professional in the Detroit area make me worry about the industry. The GM executives, fat bonuses in hand, work with advertising agencies that operate and innovate like they are advertising George Jetson in the 1950′s. Their “product” would make me laugh it didn’t make me cry.

Yes, retiree benefits are very generous. But GM has no one to blame but themselves for the financial condition of their firm and Delphi.

]]> By: ipanemahttp://www.kevinmd.com/blog/2006/05/learning-from-big-three-automakers.html#comment-63362 ipanema Wed, 24 May 2006 03:54:00 +0000 http://clients.emmense.com/kevinmd/2006/05/learning-from-the-big-three-automakers.html#comment-63362 Offering subsidised health care & shares to employees benefit companies in the end as they don’t have to handle retirement costs. One way of telling employees to pick a portion of the tab and invest for their future. Good strategy indeed that wouldn’t hurt businesses once these retirees hit age limit. Offering subsidised health care & shares to employees benefit companies in the end as they don’t have to handle retirement costs. One way of telling employees to pick a portion of the tab and invest for their future. Good strategy indeed that wouldn’t hurt businesses once these retirees hit age limit.

]]> By: John J. Coupalhttp://www.kevinmd.com/blog/2006/05/learning-from-big-three-automakers.html#comment-63315 John J. Coupal Tue, 23 May 2006 14:06:00 +0000 http://clients.emmense.com/kevinmd/2006/05/learning-from-the-big-three-automakers.html#comment-63315 General Motors is now a health care provider for its retirees and employees, sponsored by selling cars and trucks.<br/><br/>GM and the UAW worked together to get us into that mess during the good cash years of the last century. It doesn't work now. General Motors is now a health care provider for its retirees and employees, sponsored by selling cars and trucks.

GM and the UAW worked together to get us into that mess during the good cash years of the last century. It doesn’t work now.

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