http://www.msnbc.msn.com/id/28771215/
General Motors sold fewer cars globally than Toyota last year, as the Japanese automaker passed its Detroit rival for the first time, bringing to an end GM’s 77-year run as the world’s largest automaker. USFLAG CLAP
Replies (3)
swez on 01/21/2009 16:40:00
Hum, that's old news here in Detroit, Mr.B. GM and Chrysler are on the brink of bankruptcy and both just got a hefty cash infusion from the TARP program. (3 months operational expenses) Ford is a little better off, but just barely.
The "Big 3" needs to go back to school on the Japanese factory model and see how Honda, Toyota and Nissan can build such reliable and great cars at prices people can afford. We have the technology to do this already. But the cost of Labor, Management, Executives perks and legacy costs are killing US car makers profits.
The average Union line worker that has been in the UAW for 10 years or more, gets a package that costs about $60-70.00/hr. That's about mid-upper $20's/hr., in wages, and the rest in benefits, perks, vacation pay and overtime pay.
The Japanese car makers in the US are about 30-40% below our labor cost models. Their Managers and Executives have good perks, but nothing like the Big 3. They were smart and went south to set up their factories, hired cheap labor and automated as much as possible. Until 15 years ago, there was no such thing as a layoff or contract dispute/strike in anyJapanese factories.
Even when times were very lean, most Japanese companies figured out ways to keep their employees busy and earning a livable wage. ("Here's a broom, paint brush or what not... stay busy and we'll pay you well enough until better times come back")
Labor Unions did not infect their system until they went global into the US market. Even than, the Japanese companies played a great hand of poker. "We bring jobs and opportunity to those who want it on our terms. If you don't like our terms, you will not work here and we'll go elsewhere!" In the end, it worked out well for everybody.
Oh, worked for TDK Ceramics and Components Group in the mid 80's as a Sales Rep. The pay was well below scale, but the benefits and opportunities were adequate for the times. This was in Chicago and their Corporate HDQ for North American Ops. Yep, the GM's office was a mere 30 feet from my desk. (No doors, windows or cubicales either) He observed it all and we, (Worker Bees) had a degree of access to him as needed. He was an older gentleman in his late 50's, but if a worker bee wanted to say hello or ask a question, we had that option each day.
It was a great opportunity for a single guy to travel, make big $$$$ deals and enjoy well above average T&E benefits. It was a wonderful experience. But, 70 hour work weeks were common. In all, it was a very good stepping stone for a guy in his late 20's.
Our Japanese counterparts had a real sweet deal. They got free housing, a company car, trips to Japan as needed and could bring their families to the US on the Company dime to live. However, they worked long hours for all those perks.
In a nutshell, it was a very good time to climb the Corporate ladder and have fun doing it.
MrBrownstone on 01/22/2009 13:21:01
Not to mention they make better cars.
The older you get, the longer the replies
-Socrates
PS Swez was actually there to hear him say it
swez on 01/22/2009 15:20:59
Yeah, well when one has a lot of spare time to think and reflect, we older cats dig deep for the brighter moments. (Believe me, there have been many too in this old man's years)
I dunno, but sometimes it helps to write out our thoughts. It reminds us of the good days and the struggles it took to get there. Even if nobody ever reads them or can relate, it's still good keep the writing skills up to par.
Swez
General Motors sold fewer cars globally than Toyota last year, as the Japanese automaker passed its Detroit rival for the first time, bringing to an end GM’s 77-year run as the world’s largest automaker. USFLAG CLAP
Replies (3)
swez on 01/21/2009 16:40:00
Hum, that's old news here in Detroit, Mr.B. GM and Chrysler are on the brink of bankruptcy and both just got a hefty cash infusion from the TARP program. (3 months operational expenses) Ford is a little better off, but just barely.
The "Big 3" needs to go back to school on the Japanese factory model and see how Honda, Toyota and Nissan can build such reliable and great cars at prices people can afford. We have the technology to do this already. But the cost of Labor, Management, Executives perks and legacy costs are killing US car makers profits.
The average Union line worker that has been in the UAW for 10 years or more, gets a package that costs about $60-70.00/hr. That's about mid-upper $20's/hr., in wages, and the rest in benefits, perks, vacation pay and overtime pay.
The Japanese car makers in the US are about 30-40% below our labor cost models. Their Managers and Executives have good perks, but nothing like the Big 3. They were smart and went south to set up their factories, hired cheap labor and automated as much as possible. Until 15 years ago, there was no such thing as a layoff or contract dispute/strike in anyJapanese factories.
Even when times were very lean, most Japanese companies figured out ways to keep their employees busy and earning a livable wage. ("Here's a broom, paint brush or what not... stay busy and we'll pay you well enough until better times come back")
Labor Unions did not infect their system until they went global into the US market. Even than, the Japanese companies played a great hand of poker. "We bring jobs and opportunity to those who want it on our terms. If you don't like our terms, you will not work here and we'll go elsewhere!" In the end, it worked out well for everybody.
Oh, worked for TDK Ceramics and Components Group in the mid 80's as a Sales Rep. The pay was well below scale, but the benefits and opportunities were adequate for the times. This was in Chicago and their Corporate HDQ for North American Ops. Yep, the GM's office was a mere 30 feet from my desk. (No doors, windows or cubicales either) He observed it all and we, (Worker Bees) had a degree of access to him as needed. He was an older gentleman in his late 50's, but if a worker bee wanted to say hello or ask a question, we had that option each day.
It was a great opportunity for a single guy to travel, make big $$$$ deals and enjoy well above average T&E benefits. It was a wonderful experience. But, 70 hour work weeks were common. In all, it was a very good stepping stone for a guy in his late 20's.
Our Japanese counterparts had a real sweet deal. They got free housing, a company car, trips to Japan as needed and could bring their families to the US on the Company dime to live. However, they worked long hours for all those perks.
In a nutshell, it was a very good time to climb the Corporate ladder and have fun doing it.
MrBrownstone on 01/22/2009 13:21:01
Not to mention they make better cars.
The older you get, the longer the replies
-Socrates
PS Swez was actually there to hear him say it
swez on 01/22/2009 15:20:59
Yeah, well when one has a lot of spare time to think and reflect, we older cats dig deep for the brighter moments. (Believe me, there have been many too in this old man's years)
I dunno, but sometimes it helps to write out our thoughts. It reminds us of the good days and the struggles it took to get there. Even if nobody ever reads them or can relate, it's still good keep the writing skills up to par.
Swez
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