Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That is because the UAW contracts of the past are what caused making a car in the U.S. to be so expensive.
Right.....
Assembly is such a small part of the whole process. Total vehicle labor is 21% , that includes R&D , so assembly is even less. Just keep blaming the UAW though, the corporations love that, it makes it even easier for them to send those jobs away.
Small cars have no margin so they have huge production cost pressure but have to keep fleet mileage high due to US govt. regulation (or so I understand, correct me if I'm wrong).
Assembly is such a small part of the whole process. Total vehicle labor is 21% , that includes R&D , so assembly is even less. Just keep blaming the UAW though, the corporations love that, it makes it even easier for them to send those jobs away.
As I posted earlier - Profitability of operating a production facility is a part of it. If they can make vehicles that are more three times as popular (trucks) and sell them at a higher profit margin (double) and save on shipping costs, tariffs, labor, and benefits here in the states then truck production will happen here. In order to make that happen they move the slower selling lower profit margin vehicles (small cars) that will sell in S America closer to that market and where they wont be charged the tariffs on export.
It's a good business move all the way around and requires $Billions less in infrastructure than trying to add production capacity here.
Assembly is such a small part of the whole process. Total vehicle labor is 21% , that includes R&D , so assembly is even less. Just keep blaming the UAW though, the corporations love that, it makes it even easier for them to send those jobs away.
Except the jobs aren't going away, as the plants are being retooled to make other vehicles, keeping the jobs right where they are.
The real losers here are the American working man/woman. Off to the walmart and fast food sector they go.
As was mentioned, the jobs aren't being lost. The workers still will have their jobs in those plants, just building other vehicles. So all the whining about "they're talking our jeorbs!" can just stop already, ok?
That's business...All about profit, you go where it makes sense financially. But no worries if Trump get elects he will bring jobs back and bankrupt companies
As was mentioned, the jobs aren't being lost. The workers still will have their jobs in those plants, just building other vehicles. So all the whining about "they're talking our jeorbs!" can just stop already, ok?
The US Domestic economy has lost plenty of jobs to overseas. However we have also gained jobs (in different industries). It is highly unclear, even to the experts, if free-trade agreements are to blame or it is just the onward march of globalization which probably couldn't be prevented even if we wanted to.
Sure you could put up barriers and protect certain domestic industries - like Cheese, Wine, cars, etc. but at the cost of making things more expensive, risking retaliation, and causing stock crashes for our Multinationals where the same thing happens overseas.
If labor intensive jobs like Customer Service, Accounting, Production Line Jobs, et. al. are cheaper elsewhere then elsewhere they will go.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
