G.M. Sold Lots of Cars and Lost $1,227 Each - New York Times

"DETROIT, Aug. 29 (Reuters) - General Motors lost an average of $1,227 for each vehicle in the first half of the year in North America, while its crosstown rival, the Ford Motor Company, lost $139, according to new research from Harbour Consulting.

G.M. has two to three people sitting at home for every single person working today, and that has a huge legacy-cost impact on them,' Laurie A. Felax, vice president of Harbour Consulting, told an automotive conference on Monday. 'It wipes away any profit that they have.'

Both G.M. and Ford are struggling with multibillion-dollar costs for retiree health care and pension benefits under contracts with the United Automobile Workers union."

Last time I checked the object of business is to make money. ;-) How can businesses compete with such large obligations? Pensions will come into play for many businesses over the next few years. Many corporations will eliminate pensions from their benefits packages. Many employees will be forced into alternative methods of financing their retirement. Many will work until they die. What will you do?

Business