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Just Like Gm Builds Em'
ZTWsquared Offline
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#11
05-20-2009, 05:47 AM (This post was last modified: 05-20-2009, 05:47 AM by ZTWsquared.)
NOS2Go4Me,May 19 2009, 02:14 PM Wrote:How much of the cost of a car is the TOTAL cost of a worker, not just the wages? I'm talking benefits, the "job bank", pension and other legacy costs - health care for retirees, etc.

I think that's going to be a bit more than 9%. Furthermore, I think they'd be selling the cars at a lot cheaper rate if it got them out of the hole and kept people working. Sadly, that doesn't seem to be happening.
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This is all very true Adam but the context IMO is missing. The legacy costs are only relevant in so far as a comparison to the newer import manufacturers is concerned ... and yes, the domestics are at a disadvantage in this regard.

But 40 years ago the legacy burden wasn't nearly as tough as it is now and that's when it should have been dealt with.

The manufacturers knew what the future of retirement costs was going to be back then - I can remember reading about it - and yet they continued to sign agreement after agreement that only made things worse. You can I guess blame the union for asking for aggressive retirement benefits, but the real blame IMO is on the manufacturers for agreeing to them.

Moreover ... 40 years ago - hell even 25 years ago ... not only did they not concern themselves with labour and retirement costs; the domestic manufacturers (talking about management here) still didn't take the Japanese import companies seriously ... they didn't believe that they could make the kind of vehicle, with the kind of quality that Americans wanted.

Well ... they were wrong on both counts ... so to whatever degree the legacy costs are now putting the domestic industry at risk ... IMO the blame rests solely on management ... and that doesn't even begin to account for their mismanagement in terms of addressing fuel economy and durability issues.

None of these problems are new ... it's been IMO the domestics' wilfull mismanagement of long-term industry trends, dating back decades, that is at the heart of the crises their companies are facing now.
2008 Fusion SEL MTX - DD1 * 2009 Fusion SEL - DD2 * 2007 Focus ZXW - R*I*P * 2004 Focus ZTW CD Silver - sold * 2004 Focus ZTW Black - sold * 2003 Focus ZTW Black - sold * 2001 Focus ZTW Gold - sold * 2000 Focus SE Wagon (ZTW option) - Black - sold * 2000 Focus SE Wagon (ZTW option) - Gold R*I*P

2003 Focus ZX5 infra-red Track Rat - R*I*P
2003 ZX5 CD Silver Track Rat - retired, but still in the driveway

New track rat: 2000 ZX3, Atlantic Blue * JRSC with lots more to come

* New Zetec crate motor - NFG - thanks Topspeed *
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Messages In This Thread
Just Like Gm Builds Em' - NikiterZTS - 05-16-2009, 12:49 PM
Just Like Gm Builds Em' - OAC_Sparky - 05-17-2009, 12:03 AM
Just Like Gm Builds Em' - NikiterZTS - 05-17-2009, 02:11 AM
Just Like Gm Builds Em' - Spinal - 05-17-2009, 03:56 AM
Just Like Gm Builds Em' - StreetEdition - 05-19-2009, 07:04 PM
Just Like Gm Builds Em' - imack - 05-19-2009, 07:44 PM
Just Like Gm Builds Em' - OAC_Sparky - 05-19-2009, 11:30 PM
Just Like Gm Builds Em' - meford4u - 05-20-2009, 12:45 AM
Just Like Gm Builds Em' - NefCanuck - 05-20-2009, 04:11 AM
Just Like Gm Builds Em' - NOS2Go4Me - 05-20-2009, 05:14 AM
Just Like Gm Builds Em' - ZTWsquared - 05-20-2009, 05:47 AM
Just Like Gm Builds Em' - reldridge - 05-21-2009, 02:31 AM
Just Like Gm Builds Em' - darkpuppet - 05-26-2009, 01:58 AM
Just Like Gm Builds Em' - ZTWsquared - 05-26-2009, 03:00 AM

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