the failing US auto industry

[low_delta]

Reasons why the US auto industry is going bankrupt.

Comments

[sunshine-two.livejournal.com]

unions, and the fact that they can't compete with other countries in costs for producing the vehicles are the major ongoing reasons I would think. I read somewhere that it cost $4,000 in labour to build a vehicle so, add that in to the rest of the cost, and it'll catch up over time.

A couple of long time lenders who were discussing the american auto industry at work said, the only way they could compete would be to bankrupt the companies, and get rid of all the pension, and unionized costs, and start over again. Harsh from a workers perspective certainly.

[low-delta.livejournal.com]

It's too bad that many union members take advantage of their secure positions and the leverage their large organizations have. I've heard people complaining about some unbelievable benefits, and we've all heard stories about the lazy union workers.

On the other hand, top executive talent goes to the highest bidder, and if you want it, you've got to pay. I wonder how many cars you can build for twenty percent of your executives' earnings.

But there are many reasons why autos are becoming more expensive to produce (http://www.theonion.com/content/node/27569).