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By TomZ on 4/24/2009 1:55:23 PM , Rating: 2
What is relevant is that their cost structure is as elastic as their revenue.
That would be nice, but it is also impossible. Car sales go up and down a lot - do you think car companies can just quickly hire when sales are going up and fire when they are going down? Or should employee salaries just go up and down instead? What employees or union would accept that?

Not to mention the billions of dollars it takes to build and operate a car plant, and most of those expenses are fixed regardless of changes in product volumes due to sales fluctuations.

The auto industry has to deal with some real hard realities that a lot of people don't even begin to fathom. It is real easy to blame management or the UAW, but the the reality is that it is a very tough business.

