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Unformatted text preview: healthcare, it has been difficult in the past for them to complete with foreign car companies whose employee benefits and healthcare are significantly lower. Not only will this deal allow GM to change the benefits of its new employees to reduce cost, it will allow for them to lower the costs of retiree health benefits. This decision made by GM was very well-planned and negotiated with UAW. Not only did this help with the burden of employee benefits, but it also increased the price of GM stock by removing the benefits from the debt portion of its balance sheet. This was crucial for GM to truly compete in today’s auto industry. With so much new technology, it is very important that they put as much money and effort as they can into developing new technology and new models to release into the market. McKracken, Jeffery. (2007, October 11). Deal to Help GM Cut Cost Gap with Rivals. The Wall Street Journal. Pp. A3 Alexa Stockover 810-83-0687 Sec 208 Janet Graaff...
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- Fall '07
- Nissan Motors