Re: The auto industry

[unusualmusic_lj_archive]

UAW busting, Southern style:Foreign carmakers are enlisting the help of GOP senators from states in the South to break the union.

However, an internal Toyota report, leaked to the Detroit Free Press last year, reveals that the company wants to slash $300 million out of its rising labor costs by 2011. The report indicated that Toyota no longer wants to "tie [itself] so closely to the U.S. auto industry." Instead, the company intends to benchmark the prevailing manufacturing wage in the state in which a plant is located. The Free Press reported that in Kentucky, where the company is headquartered, this wage is $12.64 an hour, according to federal labor statistics, less than half Toyota's $30-an-hour wage.

If the companies, with the support of their senators, can wipe out or greatly weaken the UAW, they will be free to implement their plan.

Bill Ford v. Larry King: Village Idiocy about the Auto Industry

Interesting segment on Larry King Live with Ford Executive Chairman Bill Ford last night that I thought would get more attention today:

KING: What about the UAW in all of this? FORD: Well, the UAW obviously has been our partner through all of this. Have they made mistakes and have we made mistakes? Of course. The UAW has come a long way. I think their leader, Ron Gettelfinger, is an excellent leader and he really understands our business. In this last contract, he gave up a lot. He’s also indicated they’re willing to come to the table to do more. And so for anybody to blame the UAW as the sole reason for this is frankly wrong.
One other thing is, when I look at the people who work in our plants, I don’t think of them as UAW. I think of them as Ford employees, Ford employees who take tremendous pride in building quality and safety into our products. If you ask someone in our plant, where do they work, they say I work at Ford. To me, everybody who works in our plant is part of our extended family.

...
Here's Larry King completely missing the fact that most developed nations are backing their auto industries--and so it's no big surprise that any American car companies might need credit.

KING: Why do you need the line of credit?
FORD: We're saying we don't need it now, but we're saying, if the global economy does not pick up, you know, it would be, basically, a line of credit that we could draw upon. Larry, it's interesting because this slowdown now is happening in Europe, Asia and South America. And governments around the world are lining up to support their auto industries.

Here's Larry King repeating the ignorant assumption that Ford ought to be rooting for GM's downfall.

KING: Would it frankly benefit you if GM and Chrysler went under?
FORD: No, because the dislocation to the supply base that we all rely upon would be massive. Our suppliers are not in terrific shape. By the way, those same suppliers also supply the Japanese and European transplants as well. It wouldn't just be us affected.

Here's Larry King getting reminded that Ford cars in other markets--because they respond to sound policy like gas taxes--are very efficient (making the argument I've made--that we need a gas tax).

FORD: Because it's interesting, as gasoline was low here, it was taxed and much higher in other parts of the world, particularly Europe, but also in Asia. And as a result, we made small cars in Asia and in Europe and in South America and we made money doing so. Now we're bringing those vehicles here to the U.S.
So what's interesting is, while we stuck with that business model here, because of the price of gasoline, we were pursuing a very different strategy in Europe and South America and Asia, and we were growing and profitable. We're bringing those vehicles here now.
KING: I keep forgetting how global you are.

MORE

President Bush: Employees of American Companies Must Get Paid Less than Employees of Foreign Companies!

Yet then Bush throws in the demands that Republicans made--without noting that this was basically an ideological ploy to break the union, all the while demanding that employees of American-owned companies make significantly less than the employees of Japanese-owned companies.

Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:

• Reduce debts by 2/3 via a debt for equity exchange.
• Make one-half of VEBA payments in the form of stock.
• Eliminate the jobs bank. Work rules that are competitive with transplant auto manufacturers by 12/31/09.
• Wages that are competitive with those of transplant auto manufacturers by 12/31/09.

These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations.
In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009.

Remember, the measure the Republicans were using to measure "wages that are competitive with those of transplant auto manufacturers" was the lizard lie number--the $73/hour, the number that includes legacy costs, the payments to retiree pensions. Otherwise, there would be no reason to make this stipulation--because if you use the real wage number, and not the lizard lie number, American manufacturer wages are already competitive with the transplants!!MORE

Comments

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