It is not about the cost.
It is all about the quality of cars that big
3 build.
You can build quality cars and lose money because of the legacy cost.
Unfortunately US car manufacturers are losing money and build crappy cars.
It is all about the quality of cars that big
3 build.
You can build quality cars and lose money because of the legacy cost.
Unfortunately US car manufacturers are losing money and build crappy cars.
Quote from risktaker:
Because those workers are generally younger, those manufacturers have NO legacy costs like healthcare for workers no longer employed/retirees/pensions, etc.
Also, the new generation of employees are now conditioned not to rely/trust unions, something that would not be an option for Ford/GM if they were to open a new plant. They would be in "discussions" even before the thing would be built.
So, overall, the foreign manuftacturers *do* have an advantage with starting clean here.
Look at what the Germans did after WWII. One of their advantages was starting with a clean slate of new factories that could outproduce others elsewhere. Same with the Japanese after WWII.
Can you get rid of the UAW and legacy costs with a nuclear bomb? Maybe thru bankruptcy first?
