Will restructuring mean lower MSRP?

[FenwickHockey65]

Originally Posted by Rob53

As GM cuts costs to meet the demands on the bridge loan, that should translate into lower production costs. Shouldn't the savings be reflected in the price the consumer pays?
:flag2:

No...

GM will cut costs in other departments, aka killing or selling Saturn, selling Saab, and selling Hummer. Pontiac will be cut to a niche brand.

Producing cars will cost the same as it always did.

[trm0002]

Originally Posted by FenwickHockey65

No...

GM will cut costs in other departments, aka killing or selling Saturn, selling Saab, and selling Hummer. Pontiac will be cut to a niche brand.

Producing cars will cost the same as it always did.

It most certainly will not. There is no way to prove viability to Congress and the American public without reducing the cost of producing a/any vehicle. They can't go back to Congress and say the janitorial staff now make $3000 a year less each and get Congress to buy that it somehow makes GM profitable.

[Mr. Wyndham]

Prices to build cars will go down.
Prices to BUY cars will most certainly not.

The whole idea behind all of this is to put the Big Three in a position to MAKE MONEY. Right now, they aren't doing that very well. Lowering prices will not help that at all.

(and our taxes aren't going up, nor is the money gone forever. That's why it's called a loan)