Quote:
Originally Posted by [db]
Yeah it has nothing to do with the fact that they make cars no one wants to buy. It's the union's fault! |
Actually, it is to some extent. I'll explain in brief, but the UAW agreement basically tacks on another $2500 or so per automobile. The Big three couldn't produce the smaller, cheaper, fuel efficient, subcompact car in America because of the profit margins would be next to nill.
It's one of the reasons Ford had to build the Ford Fiesta down in Mexico, it was just not cost effective to build that type of car in America when you add on that amount per car. So the UAW basically has dictated the type of car that can be built by the big three.
Non-union foreign car companies can produce the cheaper subcompact car in American factories because the wages and benefits are lower cost.
Now, I'm not blaming the Union entirely, but they need to take their share of blame with this problem.
