Something's that have been brought up and something's that haven't.
First is the management of the Detroit 3.
When you pay seven of your top management, in pay and bonuses, 20 to 25 million a year
you will have a problem.
Example: Chrysler just paid their 2ed vice president 25. The CFO got 20.
Then demanded the the UAW go two tier on pay and take over the health care management of the workers.
The REAL hourly labor cost per vehicle is around 5-7% of the wholesale price. Do a ruff double on the wholesale and you
get the MSRP.
That's right. Half the "showroom" price is profit
Second
Detroit 3 DO NOT want to build small cars. The profits on smaller cars is lower then on large ones.
They would rather make more money on a per unit base then on a volume base.
Third
Corporate welfare. Chrysler had spent close to one billion on a plant to build a new work van.
The state of Georgia told them:
"You move it here, we will build the plant and lease it to you for 99 years. Our envirment laws are better for you,
our labor laws are easier on you and the UAW is much more controlled here".
The second shift at the GM Oshawa plant got hit as well.
For those that don't think these lay-offs don't matter all that much:
Every job on the line has seven jobs out side the plant feeding it.
One thousand get layed-off in the plant, seven thousand outside get layed-off as well.
Georgia is a so called "right to work" state.
Chrysler moved and wrought off the other plant on their taxes.
Last edited by Karbin (2008-04-29 09:18:48)