"They’re losing because every car costs $2,000 more to build due to higher wages and health care. That’s it. End of story."
If this is really the case than the US government should have agreed to some sort of specific bailout for the health care and benefits wages which are really dragging these companies down. If Toyota can work with US labor (well kind of, see source below) than there is no reason that the big three should not be able to.
Interesting side story. Toyota is worried because "Labor costs as a percentage of sales are growing faster than Toyota's profit margin" and there is now talk of unionizing to sustain labor wages. One of their own senior employees is quoted as saying, "I'm more than willing to work with that company to keep my job. But when they just take it because they want more, I don't agree with it at all."
(http://www.freep.com/apps/pbcs.dll/article?AID=2008112120001)
If Toyota gets caught up in this UAW mess too, I'm not sure how any company will produce in the US. Is there any foreseeable way jobs can stay here if the unions won't let the companies operate profitably?
If this is really the case than the US government should have agreed to some sort of specific bailout for the health care and benefits wages which are really dragging these companies down. If Toyota can work with US labor (well kind of, see source below) than there is no reason that the big three should not be able to.
Interesting side story. Toyota is worried because "Labor costs as a percentage of sales are growing faster than Toyota's profit margin" and there is now talk of unionizing to sustain labor wages. One of their own senior employees is quoted as saying, "I'm more than willing to work with that company to keep my job. But when they just take it because they want more, I don't agree with it at all." (http://www.freep.com/apps/pbcs.dll/article?AID=2008112120001)
If Toyota gets caught up in this UAW mess too, I'm not sure how any company will produce in the US. Is there any foreseeable way jobs can stay here if the unions won't let the companies operate profitably?