Quote:
Originally Posted by dave40co
I say they should file a BK and renegotiate the Union contracts. Hourly cost for an American automaker worker is $70 but for foreign automakers it is $40. The unions have priced them selfs out. I know how it works since I was a union worker for UAL when it went under. I also believe the upper management should take HUGE cuts.
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Toyota, Honda & Nissan hourly costs are more like $48 to $49 an hour, and should the three Detroit automakers make it to 2010, their costs drop to very close to that, around $51 an, due to major changes in the union contract just negotiated this past September and October, 2007. One report even claimed that GM would actually have a $200 a car advantage over Toyota in 2010.
Mercedes and BMW are at the same level as Toyota and company. Only Hyundai is at $40 an hour, and they made no bones about it when they announced their USA assembly operations, that those wages were to undercut Toyota's selling prices.