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Easy is right. Are the unions a financial disadvantage because of the higher wages Ford and GM have to pay? Yes.....
Are they a pain in the you-know-what? Yes....
But you know what, the UAW is not even in the top 10 things that impact Ford and GM's global competitiveness. It's an issue, just not as big as most people make it out to be.
Germany paid their autoworkers about $67 an hour (including wages and benefits). But the United States paid its average worker only $33 an hour (also including wages and benefits). On top of that, German car manufacturers were highly profitable, despite the comparatively large paychecks of their workers. BMW earned a before-tax profit of 3.8 billion euros, and Mercedes-Benz hauled in profits of 4.6 billion euros.
Germany paid their autoworkers about $67 an hour (including wages and benefits). But the United States paid its average worker only $33 an hour (also including wages and benefits). On top of that, German car manufacturers were highly profitable, despite the comparatively large paychecks of their workers. BMW earned a before-tax profit of 3.8 billion euros, and Mercedes-Benz hauled in profits of 4.6 billion euros.
Keep in mind with European plants not every single factory worker gets paid that high-wage. They have a different tiering structure as well as using supplier parks and other avenues to make the labor cheaper.
I had he opportunity to visit the Audi facilities in Hungary. At that time it was where they built a lot of engines as well as the Audi TT. I was amazed that Audi had less than half of the workforce compared to the Ford mustang plant. After learning more about it, you realize that half of the workforce used to assemble that product was actually non Audi labor. It was primarily supplier labor and their wages were 35% less than what the Audi employees got.
For example, after the car rolls off the line it is actually moved into the inspection area by non Audi employees. All the pre-delivery testing and other work that goes on is done by a 3rd party company. That's not how we do it in the US with Ford and GM plants.
Audi also set up many supplier parks for sub-assemblies to reduce the overall cost of labor, just like the Japanese companies do in North America. it was funny to see how much smaller that Audi TT plant was inside, but when a third of your vehicle is actually assembled across the street you don't need such a big plant.
Keep in mind with European plants not every single factory worker gets paid that high-wage. They have a different tiering structure as well as using supplier parks and other avenues to make the labor cheaper.
I had he opportunity to visit the Audi facilities in Hungary. At that time it was where they built a lot of engines as well as the Audi TT. I was amazed that Audi had less than half of the workforce compared to the Ford mustang plant. After learning more about it, you realize that half of the workforce used to assemble that product was actually non Audi labor. It was primarily supplier labor and their wages were 35% less than what the Audi employees got.
For example, after the car rolls off the line it is actually moved into the inspection area by non Audi employees. All the pre-delivery testing and other work that goes on is done by a 3rd party company. That's not how we do it in the US with Ford and GM plants.
Audi also set up many supplier parks for sub-assemblies to reduce the overall cost of labor, just like the Japanese companies do in North America. it was funny to see how much smaller that Audi TT plant was inside, but when a third of your vehicle is actually assembled across the street you don't need such a big plant.
And now with this new Ford alliance with VW to make cars for the American market and Ford to make smaller pickups for the European market beginning in 2022 it’s going to be interesting to see how things are done and if they will share manufacturing process or create something new together.
German unions are equally about training and maintaining the workforce. A German union would not force a company to keep an under performing employee as can happen in the US.
German unions are equally about training and maintaining the workforce. A German union would not force a company to keep an under performing employee as can happen in the US.
My previous brother in law worked in a German union. We talked about the differences. He never could understand the way US unions work. From his perspective, they took pride in what they did and wouldn't tolerate dead weight.
GM is running many commercials claiming Chevy is the most reliable brand, not Toyota, Honda, or Ford. I like to know based on what study. They need to spend more money earning the trust of people instead of running these useless ads.
GM is running many commercials claiming Chevy is the most reliable brand, not Toyota, Honda, or Ford. I like to know based on what study. They need to spend more money earning the trust of people instead of running these useless ads.
If they are really so reliable they should have no problem extending the factory warranty!
GM is running many commercials claiming Chevy is the most reliable brand, not Toyota, Honda, or Ford. I like to know based on what study. They need to spend more money earning the trust of people instead of running these useless ads.
Gm made a profit of $12.8 billion and handed out profit sharing checks of up to $11,700 for full time UAW workers. So i guess people are buying their pickups and SUVS and CUVs.
GM is running many commercials claiming Chevy is the most reliable brand, not Toyota, Honda, or Ford. I like to know based on what study. They need to spend more money earning the trust of people instead of running these useless ads.
They like to talk about JD Power ‘initial quality’ surveys which doesn’t amount to squat. How well they hold up after 5 years or so is what matters, because that’s what determines resale, and most people don’t want to buy a new car with terrible resale.
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