The truth of the matter is that the management of the “big three” automakers over the past half century have capitulated to the UAW and continued to give the workers pay and benefits that were not sustainable over the long haul. GM has more people living on retirement benefits that nearly bankrupt the company, than they have on their production lines. They are uncompetitive with the foreign automakers that have set up assembly operations here, but feed them the high-dollar value parts for their vehicles from their home countries and the don’t pay any tariffs to do so. When you add to that the $20.00 per labor hour disparity between the foreign and domestic plants, and it’s no wonder the American car makers are anxious to leave this county. From what I read, if it weren’t for their foreign markets, the big 3 would have gone under years ago. But again, it’s their own damned fault. They can’t pay $50. per hour for jobs that are worth half of that in the world market.
The truth of the matter is that when the Auto Makers came to DC to beg for money, they flew in their large private jets. You mean First Class airline seats were not good enough for them. This article compares relative compensation gains for Ford Motors CEO and ordinary workers.
This article provides details on Detroit history and the more recent recovery efforts.
https://en.wikipedia.org/wiki/Planning_and_development_in_Detroit
http://www.forbes.com/sites/frederickallen/2011/12/21/germany-builds-twice-as-many-cars-as-the-u-s-while-paying-its-auto-workers-twice-as-much/#49c87b5d289f
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. At the same time, the average auto worker in Germany made $67.14 per hour in salary in benefits; the average one in the U.S. made $33.77 per hour.
It’s important to make the distinction between the skilled and the unskilled and OEM’s and their suppliers. OEM’s and suppliers should be retaining their skilled “workers” in the US whether they belong to a union or not. Developing and updating their skills is worth investing in. You never know when OEM’s and suppliers might have to shift into war time production again.
All true.
I guess that also explains why they charge $70,000 - $80,000 for a pick up truck.
http://jalopnik.com/the-era-of-the-70-000-luxury-pickup-truck-1719222796