uh oh, chrysler closing ALL plants for 1 mos

[unknownroad]

Originally Posted by ducati_atx

Your post was some of the sketchiest financial math Ive seen in ages on a messageboard.

I'm quite aware that losing $1.2 B on $49 B in revenues requires spending or otherwise eliminating via accounting principles $50.2B. I guess I should have said "spend" rather than "lose".

I obviously did not propose my figures as my reasonable assumption of Chrysler LLC's unpublished 2007 P&L (especially since the mid-year sale makes the whole thing an even bigger fucking mess).

What I was pointing out was that even at this ridiculous $72/hour average, labor costs comprise little more than 20% of COGS.

I draw a number of conclusions from this:

1. Anyone who insists that unions are solely to blame for the downfall of the domestic auto industry is a moron.

2. Claims that "the domestic auto industry is doomed to fail because domestic cars are all crap and nobody buys them" are willfully ignorant.

3. The higher-ups at Cerberus must be very well-connected.

4. If I had to choose between an extra two weeks paid vacation, and getting paid $19 Million to be CEO for a year without even having to make a profit, I know damn well which one I'd choose.

5. I can't remember #5.