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I'm guessing it never occured to the folks panicing over the falling dollar that crap liike this would start happening. But, of course, for every action there are reactions.
"German carmaker Daimler AG is considering whether to move some production of its Mercedes-Benz C-Class models to Alabama from Germany, a newspaper reported Wednesday."
"That would allow the company to take advantage of lower labor and other costs and avoid swings in the value of the U.S. dollar against the euro, and would leave Bremen as the only German site producing the C-Class, the newspaper said."
"Still, Erich Klemm, the head of Daimler's employee council, told The Associated Press that moving production could cost about 3,000 jobs at Sindelfingen alone."
"German carmaker Daimler AG is considering whether to move some production of its Mercedes-Benz C-Class models to Alabama from Germany, a newspaper reported Wednesday."
My 1st thought is it will be to a southern state. I wonder why a Michigan or NJ won't offer tax incentives to open a plant in the Northeast ?
I thought it was cheaper to do business overseas because of the cost businesses have to bear in the U.S. order to provide health care to their employees, among other things.
It's nice to hear about jobs coming to the United States.
I have a family member and some friends working at the Vance, AL plant. The managment was very impressed with the work ethic of the employees. They have rules, like, show up to work, on time and do your job. The fact that they were impressed that these people did these things is kind of sad. When you come to an area where there were not many jobs and give people an opportunity to work, you probably get these results.
They pay very well with the salary capping at around $25.00 per hour for line workers and then overtime and bonuses. The 401k match is 100% on 6%. They also have excellent health benefits. I haven't heard that much from the inside of the other two car companies located in AL but, from public news sources, they seem to be pleased.
I thought it was cheaper to do business overseas because of the cost businesses have to bear in the U.S. order to provide health care to their employees, among other things.
It's nice to hear about jobs coming to the United States.
It's due to the falling dollar, not the cost of healthcare. That topic belongs in politics forum.
I thought it was cheaper to do business overseas because of the cost businesses have to bear in the U.S. order to provide health care to their employees, among other things.
It's nice to hear about jobs coming to the United States.
Cheaper on the whole in Europe?
Not a chance.
Let's not pretend this is about Daimler being in the mood to be charitable, either!
Building about 80,000 C-class cars a year in Vance would save the automaker about $95 million (64 million euros) because the average hourly wage at the U.S. factory is about $44 (30 euros) compared with $74 (50 euros) in Germany, the newspaper said.
I don't get it either... Eastern Europe labor must be dirt cheap... there is something else I suspect... heck, even Mexico is cheaper... Does that mean the C-class will be cheaper? If so, I rather they move their S-class cars... lol
Mercedes has an image to upkeep. I'm sure they took that into account when shopping for a country.
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