Topic: CAW report finds GM, Chrysler made billions in Canada since '72

[99 Silver]

Let the debate begin: 


http://ca.news.yahoo.com/s/capress/090413/business/automakers_profit_report

[toolatecrew]

No need for debate.

If they made money (in the past) they made money in the past.

It is proposed in the article

D'Cruz said one of the reasons the companies saw such high profits in the 1990s is because they were "significantly" short-changing their pension plans thanks to a relaxation of funding rules by the Ontario government.


"They're probably underfunded in GM's case in the region of $5 billion to $6 billion over the last several years, so if you take those into account, then GM's profits will be much less than the CAW is estimating," D'Cruz said.

So which is it?

Is the CAW outraged that GM underfunded and might not meet pensions if they go chapter 11?

or were there no profits unless there was underfunding ? Were/are pesnsions and legacy costs a main preventer of profitability for GM in Canada?

[articsteve]

I'm sure all that info is correct.  So what of it?  AIG, Citi Group. whomever, all received more than GM ever will under the bailout and have made literally hundreds upon hundreds of billions in the last decade.  Of those banks and insurance companies, managers recently received multi million dollar bonuses while insolvent.

The question is whether the United States, still the largest economic power, can remain so without a domestic auto manufacturer.  I believe GM and Ford are worth government assistance more than AIG which has received approx. 90 billion.  Fortunately for the AIG ppl they were deemed indispensable to the world banking system.