Profit margin (net income/total net sales and revenue) from GM's 2018 10-K annual filing:

2018: 5.44%
2017: -2.65%
2016: 6.32%

For the three-year period, the overall margin was 3.07%--$13.6B in net income on revenues of $441.8B So the 5% estimate above actually overstates the case by almost 2/3rds. I wouldn't be too quick to point to "creative accounting", as SOX has made that a very dangerous game that few executives would want to play. And generally speaking, for those that did want to play games, the tendency would be to goose net revenue higher. Because that drives the stock price and their own compensation. Hiding profits would save on taxes, but would lower the stock price, cost the executives pay, and possible have them being shown the door.

Ford's figures, for comparison purposes:

2018: 2.30%
2017: 4.95%
2016: 2.93%

For an overall average of 3.42%--$16.1B in net income on revenues of $468.9B.

 

I do agree that this is the crux of it. However I disagree that UAW has never understood nor respects it. UAW knows for sure real well bthat wages are higher and it would mean more money to GM and less to the workers. UAW is sell fulfilling organism as they need to feed the system with the revenue from their workers dues. Plus, I think the UAW even owns shares in GM.

No it is not misleading.

I see both sides of the argument. GM has to fight for their future as it is going to get tougher for them to operate in the United States. On the other hand, UAW has their employees to take care of. I think the UAW is losing the fight as there is no real job creation by GM at the end of all this. And more jobs will continue to be lost and more plants will eventually come to closure. All would be a lot easier for GM if there were no union to deal with

 

Not misleading in the slightest. If you actually watch the video, the $63 refers to GM's labor cost, and compares it to non-union foreign automakers operating in the US. At no time do they mention the average labor cost of all UAW.

To put this into real terms, $63/hr is a fully-loaded average employee cost of $131k/year. In the non-union private sector, payroll taxes and benefits (the part that constitutes "fully loaded") add on average 30-35% to an employee's base salary--or at least that's been the case at every company I or my acquaintances have worked at. So let's take the high side, and put things into perspective. If GM's benefit costs for UAW workers were in line with the rest of the market, this would mean that the average plant worker would be making $46.67/hr, or $97k/yr.

That's a good bit more than I pay for fairly high-level IT talent with 15+ years of experience, BS or MS degrees, and lots of certifications, in a MCOL market. They solve very complex problems on a daily basis, have rotating 24/7 on-call responsibilities, and have to learn new technologies constantly. And these are folks who assemble cars, who may or may not have a HS diploma. And yet they want more. This is not realistic or sustainable.

 

^^^ great post.

the uaw gravy train is over but they refuse to recognize it and would rather tank the auto companies than adjust.

 

That just makes them like a majority of Americans. At least these 4 individuals.

 

First, it wasn't a gravy train....at least after the 1970s. Second, the globalization of the American auto industry is what is in the greatest peril right now, not the UAW.....exporting of American auto jobs is no longer considered acceptable by not only the Union, but a growing majority of the public itself, and the representatives of the public in government. Third, the American auto companies are probably going to have a difficult time selling what is not produced here.....not only because of tariffs, but of the growing determination by the public to buy American.

 

Please feel free to point out any other industry where the average cost of semi-skilled labor in non-hostile conditions is $63/hr. I know the highly-skilled engineers who work for me would love it if their pay/benefits package was that large.

 

Unless one is going to be a janitor on in a similar position at the plant, sweeping/mopping the floor at night, or emptying the trash, most auto-industry jobs are not semi-skilled or unskilled. It takes time to learn it correctly.

 

On the gravy train, literally.

 

I truly sense some underlying political themes and tones in specific wording and responses. Sort of like the debate forum. Seems like a total disregard to what is really happening out there. No respect for the facts.

I vote for closing this thread until and UAW/GM decision has been made. The reopening of it for concluding remarks when the deal has been made

 

I don't think we can discuss this any further. Words have meanings, and they're not whatever you feel makes your argument at the time. Here are the definitions of various skill levels:



"Automotive Technician" (Mechanic) is considered a semi-skilled position, and it requires significantly more experience and in-depth knowledge of how all of a car's systems function (and how they fail) than does repeatedly attaching the same part(s) on an assembly line. Other examples of semi-skilled jobs are carpenters and nurse's assistants.

If you're going to claim that assembly line work is a skilled profession requiring significant independent judgement, then we may as well stop now because we are not even speaking the same language.

 

O really. Due to uaw extortion thousands of auto workers were paid to do NOTHING but sit in rooms, for YEARS in the 2000s.

https://www.chicagotribune.com/news/...481-story.html

Guess that’s why millions of Americans buy cars made in germany, korea, japan, mexico, canada (oh right that doesn’t count), china, and on and on...

wasn’t your own Verano made in Germany, and your Lexus IS made in Japan? Heresy!

 

I try to buy cars made outside of America. I know heresy right. Honestly, the crap made here falls apart far faster

 

It takes time to learn how to do any job. It takes time to learn how to make a latte; it takes time to learn how to work a cash register; it takes time to learn how to properly stock shelves; it takes time to learn how to work the floor waxer. You are using the term "unskilled" to mean that anyone can step into the job on day one and perform it as well as a 20 year veteran.

 

It is a skilled profession if and when you consider the tolerances that modern vehicles are built to. That is not an opinion, or a claim, or simply making a play on words to bolster an arguement, but a fact. If you don't understand that, then I agree.....your conversation and mine are over. Have a nice day.