Originally posted by: MovingTarget
Originally posted by: Fenixgoon
Originally posted by: LegendKiller
Originally posted by: masteryoda34
Maybe it has something to do with the fact that US automakers pay their union employees ~$70/hour versus ~$45/hour for non-union foreign automakers. ($$'s include total benefits.)
This has been debunked many times.
IIRC it's cost per hour per employee. that doesn't mean the employees average $70/hour (which so many people fail to perceive).
in any case, GM's costs are enormous. that cannot be argued.
This may be true, but you can't go around quoting that to people that don't understand what legacy costs are. It ends up being misleading. I'm sure if Honda/Toyota/Hyundai were around long enough in the US that they would have a nice big retiree pool as well. You cannot compare this to Japan which is much more of a welfare state than the US is. Apples and oranges.
That being said, I have a feeling that the detroit cars aren't going to cost that much. It is like the markup just prior to a sale to make the discounts seem deeper. Besides, with the current market, everyone may be crunched to raise prices.
What America needs is a freeway capable sedan right now that doesn't cost an arm and a leg. Anyone working 40hr/wk should be able to afford one. IIRC, $13k+ for a 4-banger just doesn't cut it. A true affordable car would be half that price.