Wondering why that new Buick cost so much when compared to Japanese or Korean cars? It's all about "healthcare"
The Auto Prophet has a post up on news that GM spends $15,000,000 on Viagra for its active and retired healthcare beneficiaries. The news originally came from Paul Eisenstein of The Car Connection who reported it in a radio interview and claimed it comes from a reliable source. So many jokes can be made, but if this is true it speaks volumes about why domestic car companies are being crushed under the weight of healthcare costs, particularly when what’s being paid for is often not linked directly to health, but rather quality of life.
Viagara causes spending to go up at GM:
Technorati Tags: car, Viagra, GM, healthcare, Buick, Autoblog, Paul Eisenstein
This *may* be true. But the US auto industry isn't dying a slow death because their cars are priced too high. Rather, nobody wants their cars (except rental fleets and retired folks) unless Detroit practically gives them away . . .
The US auto industry always has someone else to blame for their woes. If healthcare was subsidized tomorrow Detroit would start complaining about foreign competition from China.
Give us break, make better cars that people want and maybe we'll buy them.
Posted by: Patrick | Monday, August 01, 2005 at 03:05 PM
gm shot itself in the foot with employee discounts. How will they recover from that?
Posted by: Turnkey Business Website info | Sunday, January 22, 2006 at 04:29 PM