Quote:
Originally Posted by PsyDoc
Remember though, GM is paying health costs of its retirees. The latest budget I heard this morning was that the big three now want $50 billion and 50% of that will go directly to covering retiree benefits. At some point, regardless of how much "leaner" the big three get, the costs of providing for retirees will become overly burdensome.
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That's why 2010 is the key year - VEBA takes over the healthcare and retiree burden. So, GM is asking for the low interest loan just to get them to that point, and then (God willing) they will be relieved of that load.