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The annual revenue of General Motors in 2004 was approximately 193.5 billion U.S. dollars, and was a significant percentage of both Canada’s and the United States’ GDPs.
General Motor’s financial problems have many roots. Primarily, the company pays their employees more then they can now afford. The United Auto Workers (UAW) and the Canadian Auto Workers (CAW) unions have over a long period of time, become very strong. GM claims that approximately 1500 U.S. dollars of the retail price of every vehicle is due to their high health care costs. The unions have successfully negotiated issues including; salary increases, health benefits, and job security provisions...
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