Quote:
Originally Posted by SKYtime
It's not really the current labor costs that are the economic problem. Rather, it's the legacy costs of the employees of the past.....
|
I think it is more of the way the whole countries economics are structured that would cause a complete collapse of the big 3. I mean they have been failing for years. They just do not understand the principle of building a solid car from the beginning and you spend less in the long run with warrantee repairs and your dealers ripping you off fro those repairs. The other problem is too many MANAGERS and those managers MAKING TOO MUCH SCRATCH!
But the Economy will push them over the edge. From housing prices, to the massive cost of living period. Let's face it, if a couple does not pull down $125,000 to $150,000 a year in a City Area, like NY you can not live and own a house and car. How little can you pay your workers and expect a good product to come off the line. Then of course with gas prices they are losing their biggest profit center (Trucks and SUV's). On top of the fact that nobody is spending as much as they usually do on anything.
But all Manufacturers are sending production over seas to CHINA. This is the big catch 22 of this countries economy, causing the separation of classes. It is all about the big wigs being greedy and getting rich off the Chinese crap they sell us. If everything was produced here, it would cost more, lower to middle class would make a better living. By sending everything out to CHINA, we screw ourselves. Middle to lower middle class jobs are disappearing. So in 20 years, more than likely, you will ether be rich or poor... where do you fall??