The mark-up (and profit margin) on GM vehicles varies enormously, from practically nothing on minicars like the Spark and Sonic to maybe 15% or more on vehicles like the Escalade, Yukon Denali, or Silverado High Country. But that is different from the 5% labor-ratio that goes into them.

Also, competitors vary in their amount of recapture. But the main point is that labor is only a very minor part of the cost of production, even at GM. To blame unions for the troubles at Ford and GM is simply ludicrous.

 

5%! That's gigantic. GM could double its profit by simply not using UAW? Sounds like such a detriment to the company. Unions are cancer to a business

 

Not in this case. GM brought (most of) the strike on themselves, by their actions.

 

Can't have a strike if there is no union. As for 5% that's massive in an ultra competitive field but I'd like to know how that compares to other auto makers.

 

My question is where are the large scale strikes from non union workers for Toyota, Honda, etc? Are those workers paid less and treated unfairly compared to GM workers? (The answer is no).

Unions had their place, and still do in some situations, but largely they aren't effective anymore at making working conditions better for workers.

 

GM can’t cause a strike either. They can lock the UAW (which they did not)

 

Anyone ever notice how these striking uaw workers are not in exactly peak physical condition?

 

Well, without getting into stereotypes, an auto assembly plant is not the ideal place for the kind of exercise that is most beneficial to the human body. Repetitive-motions all day long tend to wear out or injure joints without really burning off a lot of calories. And that's one reason (among several) why I swim, almost every day (at least several times a week), since retirement.

And, again while not getting too deeply into stereotypes, many American Blue-Collar workers do not consume the healthiest diet on the planet, either....particularly in the bars and restaurants they often frequent after work.

 

My guess is that it is a PR move by the union to have these individuals on the line. Appeal to a very blue collar type of support.

 

From this video: the difference between GM and non UAW compaines, $63/hr vs $50/hr in pay/benefits....GM collects $1 billion less in profit because of the wage difference

 

Absolutely and thats the whole crux of it. The UAW wants a HIGHER wage while GM is already running a huge labor cost deficit and clearly UAW worker's wages are already higher than market wages for the same job. This is what the UAW has never understood or respected.

 

A misleading video. UAW employees cover a lot more than just GM.

Also, Jill, you seem to be all over the fence....supporting the strike one day (or one hour) and not the next. Which side of the fence are you on? I'm generally (but not completely) with the UAW on this one.

 

Profit margin of 5% is a joke. Unless there is some creative accounting going on, its not worth it to run such a massive business with all the complexity for a measly 5%.

 

The 5% does not necessary represent a profit margin...that will vary with each line of vehicles and in each plant. The 5%, at least the way the video explains it, represents the percentage of company money that goes into paying the average amount of labor for each vehicle, which is not the same thing. In other thing, what the labor alone costs, not counting other expenses.

 

If you think that’s bad, check out a grocery store (1-3%). While the number may be small, it’s large volumes that make it worthwhile.