Quote:
Originally Posted by Tully Mars
So if the main problem relating to labor cost is the legacy and pension issues do you have any idea how to make these companies more viable? As a tax payer I'm torn. I hate to see these companies go under. I think it would be a devastating hit to the economy. But at the same time I'm really not in favor of throwing good money for bad.
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North American cars are already much cheaper than their Japanese counterparts and people STILL don't buy them because they are largely associated with shitty quality.
Bottom line, there's too many cars chasing too few buyers. North Americans have gone the cheap throw away car route for the most part.
I work for a company of 42,000 people world wide. WE have no pension plan. We're not going to get one either. We get 2% of our salary put into an RRSP by the company provided we put in 2% of our own money.
When we retire, whatever is in that account is supposed to sustain us till we buy the farm.
It sucks, but that's the way it is and it aint gonna change.
I don't know why autoworkers think that htey are entitled to a pension.
Obviously, the solution would be for the manufacturers to institute a similar program, however, the unions would never accept it.
So, what will happen is that GM, and Ford will go chapter 11.
They will reorganize, and the union will be kicked out. They will close half or more of their plants, eliminate 2 thirds of their vehicles and they will derail all pension plans.
Then they will emerge from bankruptcy, hopefully put out some decent cars that people will want to buy and be back in business and competative with the Japanese.