Jobs Out Of Nothing At All

by CULSBlogger 28. December 2011 02:07

Despite posting positive sales figures for 2011, Detroit automakers still have a long way to go. Sales figures are exceptionally low when compared to activity from 1999 to 2007. In addition, General Motors and Ford both lost market share. Yet, there is good news for investors and workers alike.

Both GM and Ford had their debt rating upgraded and are close to shaking their junk bond status. Ford may even pay a dividend at the end of the first quarter. Plus, new labor deals create a better chance of profitability in years to come. As new employees are hired at a lower pay scale and with more affordable benefits than their predecessors, automakers can make the best of a bad situation.

As the audit leader for the U.S. automotive practice of accounting firm KPMG stated in a recent CNN report, “They are really poised with any uptick in volume to do really, really well.”

Will the new jobs and new U.S. automotive strength have an effect on consumer confidence and local economies? We’ll just have to wait and see.

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