Why US Car makers can't compete with Foreign companies....

[Wagner]

http://news.bbc.co.uk/2/hi/business/6908781.stm

About 26,000 UAW members work at Chrysler and, according to industry research, are paid on average $30 per hour more than their counterparts at Japanese firms.

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[UCrewX5]

For its part, the United Auto Workers (UAW) has said it is not in "concessionary mode".

[motordavid]

No arm wrestle here, but that snippet of an article didn't give much in the way of specifics. I scrounged
around on the web a little bit and it is hard to come up with real data, (sounding "Eric-like" )...

One set of stats I did find, posted below, are extracted from a blog and maybe suspect. I also think the
numbers C&P'd are at the top of the tier, so to speak; keeping in mind some of my old cohorts from Detroit
are finishing up their careers slinging axles and are at top pay grade. The rookie hourly guy at the Toyota
plant in TN is walking in making considerably less than his UAW top pay counterpart and the 5 year guy at
the Toyota plant, imo.

I also believe those $70+/"hour" numbers tossed around include the huge health care and benefits costs that
the UAW has won and arguably have created the unlevel field that GM,Ford and Chrysler find themselves in.

I suspect the hourly guy at the US Toyota plant is not getting those near absurd benefits that have become
almost perquisites in the auto mfg'ng biz over the past 3 decades...sort of "entitlement" gone berserk, imo.

NEway, no argument here and, the real data is hard to find, at least from a cursory dig.
BR,mD

Labor cost per hour, wages and benefits for hourly workers, 2006.

Ford: $70.51 ($141,020 per year)

GM: $73.26 ($146,520 per year)

Chrysler: $75.86 ($151,720 per year)

Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year

[Eric5273]

Originally Posted by motordavid

I also believe those $70+/"hour" numbers tossed around include the huge health care and benefits costs that

This is why US companies have trouble competing in general. Things like 401K plans and health insurance are not needed in other countries as the government provides such things. Firms in Japan only need to pay salary to workers. There are no "benefits" other than perhaps some vacation time.

[Wagner]

Now Eric, tie Iraq in

[rebound]

Where do you think the oil comes from to fill 'em up?

[AzNMpower32]

The market will self-correct. Consumers will make the educated choice; they will buy higher quality products at a more reasonable cost. Businesses that cannot adapt and rectify their products will fail and go bankrupt.

That said, the domestic car companies have been hard at work, and I give them credit for their efforts. I have enjoyed some of their cars. The Pontiac G6 was a decent drive along with the Impala. Toyota has been slipping a bit in their quality lately.

[vinuneuro]

The Japanese, Germans and Koreans inherently make better vehicles imo, but the UAW just plain sucks the life of outta these guys. On paper you only see the monetary costs, but the lack of productivity/efficiency is dually lethal. Really gotta feel bad for the 'Big' 3; one of the greatest industrial injustices of all time.

[Wagner]

I don't believe it is inherent at all, it has become a lifestyle with automakers in the US. For so long the US big 3 owned the US as far as vehicles go, but once fuel efficiency came in, and brute force left, the table turned. However, latest sales figures have GM closing the gap on Toyota as the world largest auto seller. How?? Not sales in the US but sales overseas.

[Meiac09]

what about plant spartanburg?

that $250/month insurance inclué 335i deal seems pretty damn good to me to make me do my work.