4 ms·
US automakers absolutely struggled in the 70s when foreign car companies showed up and started competing. It wasn't Kia that gave them fits, it was Honda and To
by compiler-guy 4y ago
US automakers absolutely struggled in the 70s when foreign car companies showed up and started competing. It wasn't Kia that gave them fits, it was Honda and Toyota. It was 100% an existential crisis, and unions made the situation worse. Which isn't to say that unions are necessarily bad and didn't produce good things for their workers, but they made it very difficult for the US auto industry to adapt.
A link to a long series about the interaction between US automakers and the unions is below. Of note is the story about how automakers' market share declined precipitously in the early eighties when Japanese automakers figured out the US market.
The US auto industry is not a great example of how a union can work with an employer in the face of existential threats.
https://www.nytimes.com/interactive/2015/10/08/business/uaw-auto-union-timeline.html#/#time386_11128 https://www.nytimes.com/interactive/2015/10/08/business/uaw-...
https://www.washingtonpost.com/archive/business/1981/10/11/f-the-japanesee-advantage-auto-success-due-to-more-than-lag-in-wages-/231523da-2e62-4bf0-b1ae-eadc4efe0170/ https://www.washingtonpost.com/archive/business/1981/10/11/f...
https://www.investopedia.com/articles/economics/chrysler-bailout.asp https://www.investopedia.com/articles/economics/chrysler-bai... (Heavy International Competition)
- mrguyorama 4y agoThe US automakers did not struggle because of unions. The US automakers struggled because they were led by incredibly pathetic people and genuinely did not know how to make good cars or run a business. Unions were not who was responsible for their atrocious offerings during the 70s to 2000s.
- compiler-guy 4y agoUS automakers' products were terrible, and there is plenty of blame to go around. But I have yet to read any analysis of that crisis (such as those linked above) that did not include unions as one contributing factor.
- idontpost 4y ago
- compiler-guy 4y agoFeel free to provide an alternate source. I would love to read it. Please ensure that it is as free from propaganda that it would pass your own level of scrutiny by someone on the other side.