PeriscopeDepth |
11-18-08 02:31 PM |
Quote:
Originally Posted by FIREWALL
Quote:
Originally Posted by PeriscopeDepth
Quote:
Originally Posted by Neal Stevens
I don't think the problem is with the cars they sell, not at all. The big 3 do sell cheap, high mpg cars, as well as family cars, trucks, and performance cars. The major factor in their demise, as I see it, is their labor costs. The unions have grown out of control in Detroit.
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Labor costs are certainly a big part of the problem. But there are at LEAST two other big parts as well.
PD
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What are they ?
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Efficiency for starters. While US workers are paid (what, ~30% more hourly in wage and benefits?) than their Japanese counterparts, Japanese automobiles also take substantially less man hours to produce. And it is not because they are all tiny things. The Japanese started it doing more efficiently a while ago with a product that had US consumers doing some VERY enthusiastic wallet voting in not much time.
And then there's the management. You can scream labor all you want, but it is the management's job to negotiate labor contracts. It is the management's job to ensure their business is run as efficiently as possible. It is the management's job to decide what products the consumer is going to be buying. It is the management's job to react to intense foreign competition. And they have not exactly done an excellent job in any of these areas. You are right though, the Union's do seem to be run by competent people.
You could write a book with what's wrong with the US auto industry. And in fact...someone has and it happens to be available online for free through a university. It's 26 years old, and what is really that different?:
http://books.nap.edu/openbook.php?record_id=291&page=1
Saying it's all labors' fault is turning a blind eye to many problems (I know that's not what Neal was saying). Yes, labor did contribute. But so did MANY other things.
http://www.time.com/time/magazine/ar...7356-1,00.html
The American auto industry is still failing. As I said before, I tend to believe that the market can sort things out on its own just fine. And in this case, that looks like it means letting a few auto manufacturers bite the bullet. If this isn't politically acceptable, then we can't take a middle ground with another federal aid program. We need to 100% socialize OR let them burn. Anything else, and we'll just be talking about saving them again in the near future.
PD
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