4 ms·
American auto companies cars cost, on average, $2,000 more to make than those of foreign competitors. Until that difference is gone, they will never be competi
by bkbleikamp 18y ago
American auto companies cars cost, on average, $2,000 more to make than those of foreign competitors.
Until that difference is gone, they will never be competitive. They lose $2,000 of quality or features and are expected to be competitive? Yeah, right.
In any other industry this would force a company out of business, but for some reason we think the automakers deserve our help? If an iPod was $50 more per unit to produce than a Zune they would never be able to compete and the iPod would fail because they are losing $50 worth of quality per unit - whether that quality is gone from the software, hardware, or both, it would be impossible to compete.
- danteembermage 18y agoAhh, but with a 25% tariff on your side that $2000 is well within the bounds of your cushion on a truck or SUV. http://www.cato.org/pub_display.php?pub_id=3155 http://www.cato.org/pub_display.php?pub_id=3155
- programnature 18y agohealth care costs per vehicle are between 1000-1700. We collectively, and the auto industry in particular, are at a big disadvantage until these costs are brought under control http://www.detnews.com/apps/pbcs.dll/article?AID=/20070227/AUTO01/702270372/1148 http://www.detnews.com/apps/pbcs.dll/article?AID=/20070227/A...
- patio11 18y agoWhile I know Toyota is staffed mostly by robotic ninjas, presumably they need health care once and a while, too. Japan enjoys a standard of healthcare right up there with the US. Toyota also manages to pay American worker's healthcare expenses and still profit handsomely. Find another scapegoat?
- jimbokun 18y ago"Toyota also manages to pay American worker's healthcare expenses and still profit handsomely." I think it's pretty well established that Toyota pays less for health care for their U.S. employees than the Big 3, and a large part of the reason for this is that the Big 3 are paying for health care for a lot of retirees who are no longer making cars. The NY Times had an analysis showing that most of the difference in "labor costs" between Big 3 and foreign makers was due to higher retiree benefits.
- tocomment 18y agoBad analogy, the Zune is harmful at any price/quality.