[Rhodes22-list] Detroit's problem?

[brad haslett]

Ed,

Interesting video.  Ford is doing well in Brazil just as GM is in China (Shanghai Buick) manufacturing and selling in both countries.  The single biggest industrial employer in Alabama is the automobile industry (Hyundai and Mercedes-Benz).  Tennessee has Saturn, Nissan, and soon, Volkswagon (Chattanooga).  Mississippi has Nissan and soon, Toyota (Tupelo).  Doesn't South Carolina have BMW?

This is a pretty simple puzzle to figure out.  All those companies building cars in the US South average $40 per hour for pay and benefits versus over $70 per hour in Detroit.  For GM, the legacy costs for retired employees is over $2000 per car.  You don't need an MBA to understand why this is unsustainable.  The problem is, you need Michigan's electoral votes to get elected so no one REALLY wants to tackle the problem head-on, any more than any candidate wants to eliminate ethanol subsidies because the campaigns all start in Iowa (McCain did badmouth ethanol though - who won Iowa?).

Brad


--- On Sun, 11/23/08, Tootle <ekroposki at charter.net> wrote:

> From: Tootle <ekroposki at charter.net>
> Subject: [Rhodes22-list]  Detroit's problem?
> To: rhodes22-list at rhodes22.org
> Date: Sunday, November 23, 2008, 8:54 AM
> If you want to understand Detroit's problems look at:
> 
> http://info.detnews.com:80/video/index.cfm?id=1189
> 
> This video is 3.5 minutes long.
> 
> Ed K
> -- 
> View this message in context:
> http://www.nabble.com/Detroit%27s-problem--tp20646981p20646981.html
> Sent from the Rhodes 22 mailing list archive at Nabble.com.
> 
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