Toyota and Honda build their vehicles here in the USA as does GM, Ford and Chrysler. So why are GM Ford and Chrysler in such a financial nose dive. They are not selling their vehicles because they are not making the vehicles that people want to buy and Toyota and Honda are!
The US automakers dug their hole many years ago. They negotiated union contracts that guaranteed UAW members salaries that are twice as high as they should be, and then topped that off with heavy retirement benefits to boot. Now they are stuck paying huge pensions and astronomical wages for thousands of basically unskilled laborers. It was just pointed out recently by one of the UAW big shots that the starting assembly line worker gets paid $27.00 per hour. That’s $54,000.00 + per year to start, and that is an unskilled untrained employee to just turn a bolt or screw.
If the UAW workers are out of a job, it’s as much the problem with the UAW management as it is with the the Auto manufacturer’s management. Their unions demanded higher and higher pay and benefits which increased the Auto manufacturer’s cost and made it hard for US vehicles to compete.
It’s also the Auto manufacturer’s fault for allowing it to happen. They should have thrown the unions out and they would have had thousands lined up to fill the jobs at half the pay. The Management of any company has an obligation to keeip the company profitable and in business. This all stems from poor planning and the fact that everything was deferred to deal with it later. But now, later is here and they have to pay up. They don’t know how to get out of the mess they have been building for the past 30-40 years.
You don’t hear about Toyota or Honda shutting down its plants or laying off workers.
Toyota is one of the most cost effective manufacturers of quality vehicles. They do not use union workers so they don’t have to pay people a ridiculous salary and then add that to the cost of their vehicles. They did not get that way by emulating the big American car companies. They probably did almost everything differently and got a different outcome…and obviously a better one.
American manufacturers tend to rely on the same old gimics: big cars, big horsepower, and big profits. When peoples taste changes and the price of gas goes up, they keep making the big cars with the big horsepower while Toyota and Honda keep pulling ahead.
…Rich