While throwing billions of dollars into a health-care VEBA for workers might be a heavy hit for the Big Three, in the long-term, the new contracts will likely save each automaker a substantial amount of cash. According to analysts, when the new contracts are in place in 2010, Chrysler, Ford and GM will be saving approximately $1000 on each vehicle it sells. If all three automakers maintain market share – over 16 million vehicles sold per year – that nets GM $3.8 billion per year, with Ford saving $2.4 billion and Chrysler being able to pocket an extra $2 billion. The "if" that started the previous sentence is a big one, particularly with the U.S. economy teetering on the brink of the "R-word."

[Source: Automotive News – Sub. Req.]


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