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I can't help but think that # of employees and pension systems should be a bigger factor in valuations. GM and Ford have 200k+ employees each and so much legac
by postmeta 10y ago
I can't help but think that # of employees and pension systems should be a bigger factor in valuations.
GM and Ford have 200k+ employees each and so much legacy baggage where-as Tesla, even with Scty, only has around 40k employees.
And they mostly tend to be fanatically hard workers.
- pembrook 10y agoLegacy costs for Ford and GM are only decreasing as they stopped giving out pensions in the 90s. As their retirees keep dying off, those expenses won't be replaced. Also, I know from experience Ford uses their ability to generate cash and borrow cheaply to give "buyouts" to large chunks of retirees at a time (ie. They offer a lump sum of $1 million dollars today instead of a pension. This almost always works out in the company's favor).