Sodaiho

Join Date 11/2004

+29

The Cost of Cars

Sunday, on ABC's "This Week," Gov. Arnold Schwarzenegger, R-Calif., told George Stephanopoulos that workers pay and benefits were "maybe too high."

"I think it's very important to not just put money in, but let's go and see if they have been fiscally responsible, and if they're really operating the right way. Because right now ... the auto workers ... the benefits and all of those things, are maybe too high. Right now, if you compare it to Germany and to Japan and to other countries, they can build cars cheaper, and they don't have that overhead with the amount of what they pay to the workers, the benefits they provide," he said.

"In America, you sell a car, and $2,000 of each car just goes to benefits," he said.

I found this quote on ABC's website in an article about the UAW resisting concessions. In that same article it pointed out that the latest UAW contract has workers earning $27.00/hour plus benefits, some of which, according to the new contract are paid by the Union itself, not the Company. In any event, what I thought was interesting is the comparison of costs to built cars in this country to others. Of course car companies in other countries have it better, there the government supports its citizens with health care and other benefits that are the responsibility of industry in this country. Its a completely unfair comparison. We could produce cars as cheaply here is we were to take health care and retirement out of the cost equation as well.

But then, who will pick up that huge tab?

Be well.

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as of 07 i think all US automakers workers cost about 140k a year per worker with the pay/benifits and all that jazz. Where as the Japansese US autoworkers cost about 94K per worker a year...and then we wonder WHY the cars cost so much from Checy ect ect and the Jap cars are cheaper...even when its the US workers making the cars.

Boy you mean a politican actually sees the light...hell just froze. To bad alot of have been saying this for awhile now....

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Right now, if you compare it to Germany and to Japan and to other countries, they can build cars cheaper, and they don't have that overhead with the amount of what they pay to the workers, the benefits they provide

Good quote Sodaiho-

Isn't it interesting that both Japan and Germany have universal healthcare systems, thereby eliminating much of the benefits overhead that are burdening manufacturers in the States..... who'da thunk it that some functions covered by the government could actually help, and not hurt, private industry! But, nevermind the fact that in Japan and Germany auto manufacturers have less overhead because the government looks after the welfare of the people, no, ALL problems with cost overhead and competition in the States falls purely on the shoulders of the greedy, lazy, unionized workers (who make up less than 13 % of the workforce and have taken massive concessions in the last few years just to keep jobs in the auto industry) Yep, clearly those 13 % have ruined it for everyone!

In todays "pro-growth" free-market lingo any government involvement, of any kind, is seen as the evil of socialism. Unless, of course, the government is pumping public money into private hands so that that particular company can keep it's shareholder value intact. Then it's ok!

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Yes. It is interesting to me. Why the Right, so supportive of business, would not want the government to assume the burden of at least health care is beyond me. It would seriously reduce their overhead. On the other hand, they seem to want to avoid the costs themselves (more and more companies are not providing benefits) AND not have government deal with it. I guess the employee is then left with this HUGE cost to bear alone. No one wants to tackle the various industries involved: medicine, hospitals, medical manufacturing, pharmaceuticals.

In the auto manufacturing arena, management has screwed itself. They did not want to make smaller, safer, high quality cars which were engineered to be more efficient. These companies fought the feds every step of the way in terms of safety and fuel efficiency, allowing Toyota and Honda to pull away and leave them in the fricken' dust.

I believe they deserve to die.

On the other hand, plant closures are a tremendous strain on local communities.

I don't know. Maybe the best thing is to let the car companies die awhich would force a redefinition a former American industrial base.

It seems so desperate and complex. I feel for the Joe who works for a living these days.

Be well.

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Ti's a rough time all around, I always buy Colleen a new car every two years, we are in our third year on her 2005 Civic Hybrid now, looks like we will hang on another year maybe two before we can get her a new one.

Mean while my 2002 will be driven into the dirt before I get a new car.

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MM, hold on to that Civic. I drove two Nissans and each took me to over 250,000 miles without a single breakdown. We now have a Honda "Fit" and we love the little thing. On the other hand, the Ford trucks and Chevy trucks I've owned, as well as the Jeep Wrangler were crap needing work all the time.

I am soooo glad I no longer have to have a truck!

See ya.

Be well.

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Don't forget to consider taxation though - for example you might decide not to have universal health care, and use the savings to reduce business taxation, with companies then providing healthcare benefits to their workers (if say they can get economies of scale allowing them to provide it at a lower cost to workers than if the workers obtained it for themselves, such that the workers then prefer to have that money spent on their behalf by the company), and the end result being far from clear.

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I wonder how many foreign car owners support the US auto maker bailout?

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It's a point that bears restating, as it seems watertown's comment flew right past some others here: Honda, Toyota, etc., have plants right here in the US which build many of the cars they sell here. So to say that those companies can afford to spend 30% less on labor because of government "help" is flatly wrong; their circumstances are the same as those in question.

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Quoting kryo,

reply 8

Yep most all cars bought in the US are made in the US. Dont get me wrong that some are indeed shipped but not many

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Yep most all cars bought in the US are made in the US. Dont get me wrong that some are indeed shipped but not many

Kinda makes "foreign made" and oxymoron, doesn't it. Has anyone done an analysis of the cost factors in US made "foreign" cars?

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I don't know. Maybe the best thing is to let the car companies die awhich would force a redefinition a former American industrial base.

A fat Zero!

But then, who will pick up that huge tab?

Universal healthcare of course.

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