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Today, I was at a freinds house who is a retired GM worker and picked up his annual copie of the UAW magizine . In it was a article about how the US auto makers got where they are at, once they where at the top of the game, but greed and mismanagement have put them in toughf times . The article explained how pensions and medical benefiets basically have cut the Big 3s ability to develop new appealing cars to the market .

In about 5 to 10 years the Japanese automakers will be in the same situation . With large amounts of workers retiring who will receive large pensions and will put financial burdens upon the companies, that will directly cut into development of new vehicles and technologies . Are we going to see a bland market in a couple of years . As of right now Toyota spends 8 billion more on development, than GM does . That is a huge disadvantage for GM, but what choice do they have, for the most part the US goverment does not prop up the US automakers like the Europeans do for their auto industry . The Japanese Govt to this point has not had to step in, do to great growth and profits the Automakers have been very sucessfull on ther own .

Its a wait and see on the future . If things do go south they will no doubt right the ship . Cadillac one of the Premeir makers in the luxury market has righted there ship and are spoken with great respect in the auto world . If they can right there ship anybody can .

CGTSX2004

iTrader: (1)

Please post this in CarTalk in off-topic. Thanks.