No foreign auto makers have any dealings with the UAW as far as I know. That's why they build their plants down south, where they can hire corn-fed, strong back, hard working farm raised labor, at about $13/hour. No pensions, basic health care, and few 401(k) plans, all in a low tax environment. Toyota is in Kentucky, Nissan is in Tennessee, Honda is in Ohio (south) and Indiana, Hyundai is in Alabama (Kia in Georgia), and even the Germans are in Alabama (Mercedes) and South Carolina (BMW). The legacy costs of the U.S. automakers are just one more factor killing them. Just killing them.
We have a booming market in auto manufacturing. Factories going up in many places. Why can't Obama and the rest figure why this is. Why can't they even acknowledge it. The car exec's know it but know their stuck.
I wouldn't call it booming. Even Toyota's sales are down YoY. If you use May sales data, the annualized new car sales for '08 will be 12.7 million vehicles, which in technical terms, is 'atrocious.' I believe annualized sales reached an eyelash under 17 million in 2005.
Auto sales need to come down, in my opinion. There is no reason that Americans need to purchase a new car every 3 or so years. The fact is, cars now are built to sustain 200k+ miles and most Americans' net worth would be substantially more if they didn't strap themselves with car payments all their lives.
So True. But in the materialistic US people's paychecks go towards their cars and worst cars that are too expensive for them
Ah yes, the materialistic US. How about acknowledging that it's essentially human nature - not American nature - to purchase the best, on credit, even if you can't afford it? I've seen this in many countries - not just the US. Stupid isn't a nationality issue.
cars, like many things, are a status symbol. they are fashionable just like clothes and personal electronics. an ipod can last 10 years, but why do poeple buy a new one everytime the new model comes out? i know people who change cell phones every year just to have the latest.
That is absolutely correct.....my good friend in Austin who sells cars at a Penske owned stealership (oops!) tells me of all his fat gross pre-owned deals each and every week of just that.....dump the 1 year old big suv for the 1.5 year old pre-owned elantra/civic or whatever while taking a bath on the deal.
AMT it is good to see you back here chatting it up; not that you really went anywhere, but believe it or not I have often wondered how you were doing. I was hanging around back when the military got Saddam (I still remember my first thought, "oh shit, AMT?!") Hope all is well for you. edit: I have a friend at Howdy Honda; best year EVER.