Seeking Alpha

Deweyp » Comments » Single Comment |

  • Some Facts in the GM Propaganda Race [View article]
    Numbers I have seen show assembly labor costs at only 10% of the total for an auto built here in America. The greatest cost is involved in materials, engineering, marketing and distribution along with fixed factory costs. You cannot expect to get high quality assembly using workers who are paid less than they can earn at McDonalds or Walmart. The new contract with the UAW lowers wages and benefits to a competitive level with other manufacturing jobs in other US industries.
    Actually the Aztek is a really nice vehicle but it didn't appeal to many folks because of styling. The same could be said of a few models from Honda and Toyota. I know folks who bought a new Aztek every year until the model was dropped. If you had ever driven one you would never compare it to a Pinto or Vega.


    On May 28 10:39 PM conceptwizard wrote:

    > Obamas new fuel targets will be a challenge along with making cars
    > people want. Pick 6 models make them well and warranty them strong.
    > They make a few models now that sell. Keep the prices down. I still
    > believe the business model they have will be obsolete before they
    > start. In order to compete on a world market you have to have wages
    > competitive to the median. The wages & benefits here compared
    > to other parts of the world are way higher. Ford & GM can build
    > the same car at half the cost outside the country, they have been
    > for some time. This is an attempt to maintain a dying business model
    > by saving votes using taxpayers hard earned money. If they are going
    > down this road they might as well throw out the competition via protectionism.
    > At least that way we would be guaranteed our money back.
    May 29 10:01 am |Rating: 0 -1
All Comments by Deweyp »
Comments by Ticker
Deweyp's
Comments Stats
53 comments
Rating: 23 (62 - 39 )