This week is a very boring time in terms of financial news from my perspective. I'm not into cars, or car news, and with the industry in such a slump, it seems like all it's bad or at least sobering.
AutoNation's CEO was just on CNBC talking about the industry, and he made an interesting observation. Something like,
"As U.S. labor costs come in line with the U.S. plants of foreign auto makers, the industry and the UAW have to realize that in a cyclical industry, labor costs can not be fixed."
Given that there are huge pension and health care costs that are owed to retirees, there are always going to be fixed labor-related costs. Minimizing the fixed costs through the rest of the income statement needs to be job one.
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