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Old 04-13-2009, 11:16 PM   #19
Sival will become famous soon enough
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Join Date: Jun 2008
Location: Québec, Canada
Posts: 213

2007 ION-3 Sedan
Default Re: New GM CEO Not Fazed by Future Competition from Saturn Brand, Peugeot Cited As P

Speaking of costs, the UAW is a massive cost for GM that foreign transplants do not have. The money doesn't just go to current workers. The pensions, healthcare benefits, 401K etc. all add up.
The main problem is the pension and health care to retirees, take that away and the difference between the transplants and the unionized factories is small. My preferred option would be to force all plants making cars in the US to have the same pension fund so as to level the playing field (making Toyota and Honda pay for the workers from the American companies that they replaced with their own). But that's not in the cards, unfortunately, so the system that is in place actually is one that directly punishes companies for treating their employees well, I fail to see how that is good.

In terms of man-hours to make one car, unionized factories in the US are about as efficient as the Japanese factories.


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