Why is Everyone Diss'n GM?

"You could argue that a slowdown in sales is because they didn't make better products, but that would sure be hard to prove based on history! Talk is cheap."

Your right... talk is cheap and GM does a lot of talking. When you're expected to pay 20-30+ grand for an automobile, there is no excuse for poor quality. Why is it that Honda and Toyota can build a car that runs forever with fewer problems than a similar GM product? That is the proven history that you seek! I own a 1985 Volvo and a 1999 Pontiac. My 20 year old Volvo requires less maintenance and repairs and is more trust worthy than the 1999 Pontiac. That is all the proof that I need.

And just what is wrong with a vehicle made in Canada?

The company I work for just closed its US and Mexico plants - not because of taxes etc, but because of the workforces. Vuarra

Quid quid latine dictum sit altum videtur. (That which is said in Latin sounds profound.)

Nothing is wrong with a vehicle made in Canada. It is cheaper to make there. In particular the health car is much less.

Medical care costs the company $1400 for a U.S. built car Much less in Canada.

For some medical procedures the Canadians have to come to the U.S. and pay for treatment as their medical system does not want to invest in expensive equipment.

GM never lost anything, you can't lose what you never had. They didn't post porfits as high as predicted would be the correct statement.

The Camry may be assembled here in the states BUT with all asian parts. NO US content.

"Da udder one ya dont know" wrote in message news: snipped-for-privacy@g14g2000cwa.googlegroups.com...

What was the "profit" number for the last quarter?

Virtually none of the money makes it into the U.S. economy.

Interesting statement. When talking about Japanese cars made in the US I've read in this group that "all of the profits go back to Japan" but when GM cars are made in Canada, "none of the money makes it into the US economy"? Why is that?

It's not true. The upkeep, salaries, workers comp and medical payments(emplyer's part), power and maintainence of the plant...

It all adds up to the largest part of the car's expense. Profits are nothing compared to the thousands per vehicle that get paid out all all levels running the plant.

Not so. GM pays federal corporate income taxes on the profits earned in the US, regardless of country of origin of the vehicle. Toyota on the other hand pay no US corporate income tax and the profits earned in the US.

mike hunt

WaterWatcher wrote:

WHEN THEY MAKE A PROFIT, that is. Even then, it goes to our government, which contributes almost notihng of that money into the local economy.

You must have missed your economics 101 class. Even if that were true, the fact that American corporations pay taxes keeps your taxes down and the shareholders pay taxes on dividends as well. Buying a Toyota only benefits Japan, takes capital our of the country, worsens the trade deficit, helps to devalue the dollar, lowers the wage base in the US and hurts SS, for starters.

mike hunt

Joseph Oberlander wrote:

If the government doesn't put the money back to the US economy, the where does the money go?

For one to pay the billions of dollars of interest on the $2 Trillion dollars worth of Treasury bonds held by the Japanese and other countries. Bonds they bought with dollars they got from Americans for their products. Dollars they don't want to spend on American products.

Looks good on paper, but fails in practice as those who get dividends are almost always able to find a way to not have to pay much if any tax on them. And lately, GM isn't making any profit.

But the most important fact is that economic aside, the waste and corruption of our government means that little or nothing really gets into the economy from GM's taxes. Wel, not unless you count missile defense systems that don't work, two concurrent wars with no end in sight, paying for people to write and produce fake propaganda as news...

I consider every dime that I give to them to be gone. The money I pay locally, otoh, it makes a real difference.

Very slightly by comparison, since GM seems hell-bent on taking the capital it has overseas or across the border anyways. Toyota wants to make more vehicles here.

The end result is that where it's made is really 90% of the equation. Sure, the other 10% matters, but it's not nearly as critical.

I hear a lot of it is going to fund two wars overseas. Oh, and to bail out Social Security, which is hopelessly broken.

Certainly not going to help rebuild the streets and keep the schools nearby running. That's all state-level money.

Like I said you must have missed your economics 101 class if that is what you believe It is difficult to enlighten one who does not yet understand the basics, bye LOL

mike hunt

Joseph Oberlander wrote:

Unless the dividend is paid into a IRA account, one certainly DOES pay taxes on dividends received. At least everyone I know does. The interesting thing is that if one receives dividends from a foreign country (say Nokia), you get a tax credit to offset the foreign tax you paid to the host country. It's interesting that the Feds give you a credit for the portion of your dividend that was already taxed in a foreign country but doesn't give you credit for US taxes already paid in the dividend from a US company.

That accounts for a fraction of it. What about the rest?

I am only saying that is where part of it might go. The interest on $2 Trillion is about $100 Billion. Not a minor "fraction". That is approximately 1/4 of the Deficit.

Of course much will go for other "legitimate expenses" such as maintaining our "occupation troops" in Germany, Japan and Korea as well as Iraq. All of course countries that will rise up again and become a world menace if we don't control them.

Someday the trade deficit has to come home. Those dollars are supposed to be used to purchase American products. Not to support out debt. With the dollar falling most countries are losing interest in supporting our debt. What happens next?