Why GM is so oppressed by legacy costsby
I've been trying to understand why General Motors is so oppressed by legacy costs, and I think I finally have got it. Look at this table:
|*2004 for GM, 2003 for Honda and Toyota|
GM, a company with 300,000 employees, is supporting the number of retirees appropriate for a company with a workforce of 800,000, almost triple the size.
Meanwhile, Toyota and Honda, both growing companies, are supporting a retiree base which is relatively small compared to their current workforces.
Definitely a case where GM is still being punished today for mistakes it made in the past.