The latest rumor is that Fiat will back away from the Chrysler deal (if the unions don't come to the table) and buy Saturn.. Which really would likely be a better fit.
Definately a better fit. Also a better idea considering Saturn was just going to be shut down with the GM revamp from what I have heard.
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Well, now she can move on to that job at Tim Horton's that she is ideally qualified for. The mindless proles in NA better realize that there are millions upon millions mindless proles in China, Indonesia, India and Vietnam (among others) that can do the same thing for a fraction of the cost.
Definately a better fit. Also a better idea considering Saturn was just going to be shut down with the GM revamp from what I have heard.
That, and Saturn had some models in the past couple years that were basically rebadged Opel's from Europe, so there's a manufacturing branch there already...whereas Mb likely scrubbed any Euro plant clean if it had any Chrysler ties to it.
Again, this whole thing goes to show how bloated the union has become and handcuffed the big 3. Clauses that have been negotiated (through threat of strike when the Big 3 were humming along) through the years like guaranteed hours and contracts for workers, means that plants were forced to expand simply in order for union workers to get enough guaranteed shifts/hours as was written in the contracts, at those high wages. Now when things are tough, closing plants seems like an easy thing to do..but those union memeber are getting paid no matter what, so may as well have them work and produce something that they can sell.
With the Asian manufacturing costs about 35-40% lower, its pretty easy to see how the larger companies with larger, more miltant unions, can get stuck in something they cann't get out of.
It's just a matter of time. 10 years ago it was wrt Hyundai "would you buy a car made in Korea?" That said, manufacturing in NA still has certain advantages (legal/business climate, location, proximity to supply chain, etc), so it's a question of how much that is worth in labour costs. Given that the vast majority of UAW/CAW is only qualified to earn minimum wage, you would think there is a happy medium that can preserve the auto-manufacturing sector in NA. Of course, will UAW/CAW leadership have enough intelligence to see which way things are trending...
I was reading an article saying how Slovakia is getting a lot of the automakers setting up shop for the relatively low labour costs. VW had a plant there and the VW head was wondering why Kia put a plant there since their plants are so robotic that there isn't as much benefit from the cheap labour.
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Last edited by Bobblehead; 04-16-2009 at 02:29 PM.
Reason: Spelling
It's just a matter of time. 10 years ago it was wrt Hyundai "would you buy a car made in Korea?" That said, manufacturing in NA still has certain advantages (legal/business climate, location, proximity to supply chain, etc), so it's a question of how much that is worth in labour costs. Given that the vast majority of UAW/CAW is only qualified to earn minimum wage, you would think there is a happy medium that can preserve the auto-manufacturing sector in NA. Of course, will UAW/CAW leadership have enough intelligence to see which way things are trending...
Korea ain't China. I wouldn't buy dog food or paint from China so I sure as hell wouldn't buy a car from them, and I doubt I will in ten years. I don't think I'm alone, so there could be a bit of a lull.
People seem to have no problem buying Volkswagens that are manufactured in Mexico. People in general seem to have no problem buying a lot of goods being made in China so long as it's not a Chinese national company trying to sell them. If it's a North American owned company backing and warranting the product, I suspect most people wouldn't notice.
Now there could be a logistics issue with building things in China and than shipping them back to North America as Vlad mentions. So if the labour costs were down a bit, than manufacturing vehichles in North America probably could be viable.
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I was reading an article saying how Slovakia is getting a lot of the automakers setting up shop for the relatively low labour costs. VW had a plant their and the VW head was wondering why Kia put a plant there since their plants are so robotic that there isn't as much benefit from the cheap labour.
Good for Slovakia. Everyone's xenophobia aside, it's actually a good thing when manufacturing jobs move. Spread the wealth.
People seem to have no problem buying Volkswagens that are manufactured in Mexico. People in general seem to have no problem buying a lot of goods being made in China so long as it's not a Chinese national company trying to sell them. If it's a North American owned company backing and warranting the product, I suspect most people wouldn't notice.
Aye, fair enough. I do know that cars currently built in China are just awful (see them there youtube videos above) and I'd be leery of buying one built there, even if it said "Ford" on the front.
Hell, people gripe about the quality of American cars as it is. Would that perception/reality change if the same car was made on the cheap in India and shipped here?
Korea ain't China. I wouldn't buy dog food or paint from China so I sure as hell wouldn't buy a car from them, and I doubt I will in ten years. I don't think I'm alone, so there could be a bit of a lull.
Anyway, how's the weather up there?
It's not like you'd be buying Cherry's or Nano's (which will be available here in 3-4 years btw) - it would still be a Cavalier or a Focus, and probably exactly the same, aside from being made by yellow drones instead of white drones.
Weather is mediocre to decent - thanks for asking.
My MP would be receiving a very, very unkind letter if my money goes to support a greedy, self-serving union. the CAW doesn't deserve a single penny of government support. Neither does Chrysler, for that matter, but at least the manufacturer provides a benefit to this country by creating jobs. The CAW is a leech that actively harms this country.
if their pensions go belly up, don't the taxpayers end up stepping in to cover them? I was told at work that was indeed a former deal signed by the government. Either way we're cutting the CAW members a cheque.
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if their pensions go belly up, don't the taxpayers end up stepping in to cover them? I was told at work that was indeed a former deal signed by the government. Either way we're cutting the CAW members a cheque.
I don't believe thats accurate.
The government was only going to help cover the pension if they approved of the business plan and released the funds. That hasn't happened yet.
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I think the CAW is counting on the government stepping up and covering half the 19 bucks (or something).
Problem is, my recollection is that public opinion is overwhelmingly against the CAW. The politicians are going to be reluctant to step in.
Except Jack Layton.
Not going to happen, the government has to approve the concessions and the restructuring plan before they release any remaining funds and the Ont and feds have made it very clear that they require deep concessions.
They know that covering any part of the 19 dollars would be election suicide.
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