Automotive Industry

iVillage Member
Registered: 10-31-2008
Automotive Industry
10
Wed, 01-28-2009 - 4:55pm
With all the talk in the news about the major automotive companies in North America going through such financial hardship, and all the talk about 'bailouts', I just wanted to bring up a notion and see how it was received.  First off, I would like to say that for the past few decades the domestic automotive industry has really 'spoiled' itself.  Wages in the automotive industry soar WAY beyond those of similar non-automotive factories, hence production costs and finally end product costs are highly inflated.  But of course, in good times, this was 'acceptable'.  No one seemed to notice when the Asian comapnies started creeping in, with their much more efficient management, sensible products and competitive prices.  Now hard times are upon us, and the automotive industry is falling apart, mostly due to it's own neglect of itself.  So, in the face of all this, I wonder if in return for a government 'bail out' package, should the automotive industry not offer an across the board pay cut??  How many billions of dollars could be saved if every person from upper management to plant employees took a set percentage pay cut from their highly over inflated wage or salary??  Would they not in turn start producing a more cost effective product, and end up strenghtening their own industry??  Handing out money with no 'fix' in place is only throwing that money at a sinking ship.  Isn't it time that EVERYONE took a bit of responsibility for the problems we've caused and worked to fix them??
iVillage Member
Registered: 08-01-2008
Wed, 01-28-2009 - 5:26pm
I agree with you. I would also like to add that they neglected to make smaller cars in order to get more money for their huge SUVs. I was against the bail out for the auto industry because they have been greedy and neglected the real need for smaller more efficient cars. Not only were they building gas guzzlers, but they were also building disposable cars that fell apart on you in 2 years! Americans aren't stupid and many started buying foreign because of the unreliable US cars. Another factor that caused their problems were expensive labor union workers. I know many people are FOR unions, but I personally feel that they were needed in the past to protect the rights of workers, but not now. Workers have government laws to protect them now and that should suffice. All of us regular employees don't need labor unions, why should they?
iVillage Member
Registered: 05-23-2008
Wed, 01-28-2009 - 6:07pm

What you say is correct.

iVillage Member
Registered: 08-30-2002
Wed, 01-28-2009 - 6:42pm

Didn't the Bush Admin make the cost of a $50K +vehicle for "business" expenses completly deductible or something like that? Or was it vehicles weighing over 10,000 lbs? Wasn't that why Escalades, Hummers, and Lincoln Navigators became all the rage all of a sudden? You could buy this behemouth for 50K plus for "business" purposes and write the whole thing off your taxes the first year or something like that? His little oost to the auto and oil industries.



iVillage Member
Registered: 02-19-2008
Wed, 01-28-2009 - 9:26pm

In the near future many corporations will have newly unionized workforces. Recently back from a trip to Europe a friend told a story about a wonderful cup of coffee. The only problem was her bill. Which was about $15 U.S.

To many I suppose $15 coffee is worth it, if the workforce is unionized, gets a great salary, wonderful pension, lots of time off, healthcare, daycare, lots of vacation time and can't be fired. Eventually the $1 menu at McDonalds may morph into the $10 menu. The $50 steak dinner, will cost only $500, but we will all feel good about it knowing how great our servers are treated.

iVillage Member
Registered: 08-30-2002
Wed, 01-28-2009 - 9:38pm
You know all the migrant workers people don't want here? You know the ones picking friut and veggies for low wages? What do you think we'd pay per pound if we paid "fair trade" prices, with health benefits, vacation pay, state mandated breaks,


iVillage Member
Registered: 02-19-2008
Wed, 01-28-2009 - 9:59pm
If it costs $20 per pound for apples, but the workers are being treated well, to many it may be worth it. We can also expect a 24/7 conga line across our border.
iVillage Member
Registered: 01-22-2009
Thu, 01-29-2009 - 4:27am

~Recently back from a trip to Europe a friend told a story about a wonderful cup of coffee. The only problem was her bill. Which was about $15 U.S.~


Just to clarify for you,

Community Leader
Registered: 04-05-2002
Thu, 01-29-2009 - 8:39am
The dollar is so weak these days that everything is expensive there.





Avatar for lucy4980
iVillage Member
Registered: 03-26-2003
Sat, 01-31-2009 - 4:10pm

Yep - and $7 translates to around 5 euro.

iVillage Member
Registered: 03-18-2000
Sun, 02-01-2009 - 11:54am

At

 


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