why caused the automakers to almost go bankrupt?

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Squisher

Squisher

Lifer
Aug 17, 2000
21,204
66
91
Originally posted by: ShotgunSteven
Someone linked a news video in another thread, where UAW employees were getting paid $35.00/hour (I believe that was the figure) to sit in rooms and play video games and read books or whatever else they wanted to do, so they would be kept on the books as "employed."

Found another video during my scrounging, this one of an automated assembly plant that Ford has in Brazil. We will never see its like in the U.S. while the UAW is still around in a significant manner.
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I have to believe both videos are dated or will be shortly. People in the jobs bank were moved from sitting home and collecting a check to making them come into the plant to do non-traditional jobs. Soon there won't be a jobs bank.

The reason you wouldn't previously have seen the type of operation that they have in Brazil because of the union will largely be removed next year. Whether some municipality builds Ford its own port is up to the local government. I'm sure the low prevailing wages in Brazil has something to do with this also.


Skilled Trades makes around $30/hr, general labor makes between $21-24/hr.
 
D1gger

D1gger

Diamond Member
Oct 3, 2004
5,411
2
76
As others have mentioned, much of the problem is caused by mismanagement and external economic factors, but the UAW costs and inflexibility are still a large problem.

Wage Rate of GM/Ford/DaimlerChrysler
UAW Represented Assembly Workers as of March 5, 2007
GM Assembler Hourly Rate $26.09 + COLA 1.77 Total $27.86 (direct wages)

FORD Assembler Hourly Rate $26.10 + COLA 1.83 Total $27.93

DAIMLERCHRYSLER Hourly Rate $26.86 + COLA 1.89 Total $28.75

Competitive Labor Cost Comparison
2006 Average Labor Costs ? UAW represented (per hour worked)
DaimlerChrysler $75.86
Ford $70.51
General Motors $73.26

U.S. Japanese Transplants Labor Cost Comparison
2005 Average Labor Costs

*Honda $42.95
*Nissan $41.97
*Toyota $47.60
*Memo: DaimlerChrysler estimates
Click to expand...

Link

Keep in mind that these costs are from a Chrysler document so are probably skewed, but it give at least an indication of the wage cost disparity.
 
S

Staples

Diamond Member
Oct 28, 2001
4,953
119
106
Originally posted by: amdhunter
The mentality that American cars suck, Unions, piss poor management...
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Pretty much sums it up.

The first one of those is justified until 5-10 years ago but the later true were the death blow.
 
S

Staples

Diamond Member
Oct 28, 2001
4,953
119
106
Originally posted by: Pacemaker
They didn't anticipate 4 dollar + gas and the effect it would have on the industry. I'm tired of the "they don't build cars people want" argument. They made SUV's because people wanted them, they just didn't see the sudden shift in demand coming. They finally are catching up with the demand shift and now it may shift again because gas is cheap.
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Um. Toyota was able to deal with it. How do you explain this?

Maybe it has something to do with GM NOT investing in the future in case something like this ever happened.
 
T

Turin39789

Lifer
Nov 21, 2000
12,218
8
81
Originally posted by: D1gger
As others have mentioned, much of the problem is caused by mismanagement and external economic factors, but the UAW costs and inflexibility are still a large problem.

Wage Rate of GM/Ford/DaimlerChrysler
UAW Represented Assembly Workers as of March 5, 2007
GM Assembler Hourly Rate $26.09 + COLA 1.77 Total $27.86 (direct wages)

FORD Assembler Hourly Rate $26.10 + COLA 1.83 Total $27.93

DAIMLERCHRYSLER Hourly Rate $26.86 + COLA 1.89 Total $28.75

Competitive Labor Cost Comparison
2006 Average Labor Costs ? UAW represented (per hour worked)
DaimlerChrysler $75.86
Ford $70.51
General Motors $73.26

U.S. Japanese Transplants Labor Cost Comparison
2005 Average Labor Costs

*Honda $42.95
*Nissan $41.97
*Toyota $47.60
*Memo: DaimlerChrysler estimates
Click to expand...

Link

Keep in mind that these costs are from a Chrysler document so are probably skewed, but it give at least an indication of the wage cost disparity.
Click to expand...

IIRC the per hour pay is roughly the same, it is the old school health plans and pensions that up the US auto workers per hour price .

"
Last year, Toyota's top 37 executives earned a combined $21.6 million in salary and bonuses, according to filings with the Securities and Exchange Commission. U.K. firm Manifest Information Services, which analyzes proxy information, estimates Toyota's top executive, Hiroshi Okuda, earned $903,000 in 2006.

At Honda, the top 21 earned $11.1 million, combined, in salary and bonuses, SEC filings show

GM CEO Rick Wagoner earned $9.3 million in salary and bonus in 2006

Chrysler's new CEO, Bob Nardelli, became a symbol of corporate excess when he left Home Depot early this year with a $210 million severance package. Ford's new CEO, Alan Mulally, got $27.8 million in salary and bonus in his first few months on the job, including an $18.5 million signing bonus."
 
EKKC

EKKC

Diamond Member
May 31, 2005
5,895
0
0
listen to this uaw d-bag opening his mouth
http://money.cnn.com/2008/12/1...ostversion=2008121211#

"Now, the only resolution is for Treasury to use TARP funds," Gettelfinger said. "UAW calls on Secretary of the Treasury Paulson or the Federal Reserve to use their authority to prevent the imminent collapse of auto companies and the devastating consequences that would follow."

Gettelfinger said he did not know how much money the Bush administration might release from TARP or what conditions would be associated with it. He added that he didn't believe the White House would tie any strings to the money, but said regardless, "The money must be released as quickly as possible."
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it sounds as if he's threatening the bush administration if they dont tap into the TARP they'll just rot.
if i were bush i would let them rot. hell, bush did enough wrong already for the past 8 years, whats one more bad decision is going to do. i seriously doubt anyone sane would support the big 3 to stay in business and use taxpayer money to slow their death march.

sorry if its sounding too P&N. but i had to let that off my chest.
 
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