Comments on: Building A Better Automaker

CBS Evening News: Where American Companies Lack, Japanese Car Makers And Workers Are Thriving

[helloall34]

I was upset by that story in that CBS news failed to mention that ALL those profits are going to an overseas company, not paying ine dime in US taxes. What if GM does go bankrupt and all those people are now on Social Security and Medicaid? How much do you think that''''s going to cost taxpayers?

Posted by drgage at 09:42 AM : Nov 21, 2008
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They pay taxes, maybe not on a lot of the profit, but certainly on the costs of production. They are a huge contributor to the US economy. As for the retirees, it sure must be nice to have a "pension", and benefits after retirement, no one under 60 in the US knows what such things are. We have to have universal health care in this country, their is no other way out.

[wnbear-2009]

Just anote ,if Gm goes down in 10 years there will be no cars produced in US,That may be fine but tell me where will people then find jobs.

[wnbear-2009]

Will cbs report on: actual US content,actual US federal income taxes paid, state subsidies to build plant, Report on actual wages ,benifits, an how many workers Toyota hired and then fired to man plant.
How many cars are still imported into US ,sold in Japan, other areas.
It actualy amazes me that many people believe they are the only ones who should have a decent wage and benifit package.

[chenz66]

No matter how you slice it, GREED is what is causing the US automakers to go belly up.

[drgage]

I was upset by that story in that CBS news failed to mention that ALL those profits are going to an overseas company, not paying ine dime in US taxes. Or that the US automakers are supporting thousands of retirees with pensions and health care costs. What if GM does go bankrupt and all those people are now on Social Security and Medicaid? How much do you think that''s going to cost taxpayers?

[armydog2]

Why is everyone blaming the UAW union and not the pi-ss poor management who got these companies into this mess. All of the heads of these companies flew into Washington on private company owned jets, when asked to give up these jets they all sat very quiet. Reorganizing and restructuring is necessary and that means bankruptcy not 25 billion dollars. The union already agreed to a pay cut to save these companies.

[dickyounger]

What the Unions want is card check so they can try to organize the autoworkers in the South. They want to raise the workers'' wage level there so the Big Three can now compete on labor costs! In other words, pull everyone down to their level!

[worstever2]

Do not reward the big 3 for pitiful performance. It was their actions that got them here, let them gets themselves out of this jam.

One of your staff royally screws up time after time, then comes to you for a big raise to correct past mistakes ......... I don''t think so.

[craigh9]

US autoworkers do not make $75 per hour.
Not even close.
More like $35 per hour.
Posted by CBS_Oliver at 07:47 AM : Nov 21, 2008

This is true, the $75 is misleading - but the $35/hr. is still way above a reasonable rate for the job performed - and the benefits package is through the roof as well.

The big 3 needs to formulate a plan - in conjunction with the UAW to correct this mess in order to get the bridge laon from the government.

Specifically:
- approval from UAW for a 15% cut accross the board for all workers
- Management salaries cut by 33% and complete suspension of all bonus programs.
- A maximum salary of $2.5M for any position until such time that the government loan is repaid,
- A 20% reduction in operating expenses (corporate jets, junkets, political donations, etc.)

Then, and only then will they position themselves to be able to rebound from their current situation and be competitive in the future.

[cbs_oliver]

Average hourly salary for Non-Skilled, Assembly line worker:

GM: $31.35/hour (Includes idle workers still on payroll and those on protected status)

Toyota: $27/hour (Includes year-end bonus)

source: Center for Automotive Research

[cbs_oliver]

This report is trash.

Barry Peterson might do CBS viewers a favor by actually reporting on the details and facts rather than on the bogus spin of the political interests.

Too bad.

[cbs_oliver]

US autoworkers do not make $75 per hour.

Not even close.

More like $35 per hour.

That $75 number is a industry composed assignment to current workers of all costs for past and present workers including some that have already been paid into pension accounts.

That money is actually owed to both past and present workers and assigning it to current workers alone is deceit.

Calculated deceit which is likely to backfire this time.

What makes it even more rediculous is that some of the money is already sitting in accounts for retirement income and medical benefits and has effectively already been paid to retired workers who are no longer working.

The US motor industry is effectively counting past workers money as something they, the industry are now paying out. Claiming other people''s money. Typical, eh?!

Of course foreign companies recently investing in US plants don''t show much cost under this model. They don''t retirees or have a large pool of accumulated other people''s money to claim as a liability. They don''t have a history of large past profits either. All they have is the current salary of their current workers and the small accounts they have set up for their eventual retirement (maybe).

[closethippy1]

What a bunch of stubborn mules these US automakers are. All this time they really thought they were outsmarting their customers by building cars that would last 3 to 5 years before needing an overhaul.
They couldn''t even build a freaking car door handle that would last past the car''s warranty.
They always took shortcuts.
They couldn''t even care less about increasing the milage in their cars.
Let them rot in hell. Good things always come when the rich suffer because of their arrogant behavior.

[cheetah-man7]

Toyota''s are indeed the best cars made today. I own one now and other than basic preventative maintenance, never have any issues with it. Now THAT is a good car! I will NEVER again buy another US made car and now only look at Toyota''s. I am a very patriotic American, but I look for quality first, and do not buy my goods based on the country of origin. I would hate to see so many people in the BIG 3 laid off, but this may have to happen if the comapnies don''t get its act together. They have an opportunity of a lifetime now and if used wisely, they hav the potential of becoming the best car makers in the world. The proof will be in the end product. Let''s see if they can ever catch up to the Japanese.

[andylance1]

General Motors is a major sponsor of conservative talk radio hosts such as Rush Limbaugh, Sean Hannity and Laura Ingraham.

GM says it doesn''t pay the stars directly for their endorsements, although it advertises on their shows. It gives them new GM cars and trucks to drive for two weeks each month. The company also invites these right wing radio hosts to Detroit for private meetings with top executives and VIP tours of GM facilities.

Have you ever noticed that right wing talk radio never criticizes the government bailing out Detroit automakers? They are cynically being paid to keep their mouths shut by slime-balls like Rick Wagoner. A government bailout will make Limbaugh and Hannity even richer Judas goats.

[sunhunter2]

The Big 3 auto makers and the UAW could learn something from a folktale called, %u201CThe Wise Quail.%u201D It is the story about a quail who instructs his flock how to escape the hunter%u2019s nets by working together. He then encourages them to move deeper into the forest in order to practice cooperation. Some of the quail refuse to leave, and as a result of their arguing, they are caught by the hunter and perish.

Pelosi and Reid have done their job. They have asked for a plan to show that taxpayers%u2019 money will be used prudently. The auto makers have a second chance. The wise leader would gather his flock and prepare a sensible plan.

The airline industry lost TWA and PanAm years ago. Continental faced some hard times but, its management team used Chapter 11 to re-negotiate contracts, eliminate hubs, purchase a new, fuel-efficient fleet of planes, and improve flight load levels. They came up with a good plan. Then, they executed it. Now Continental is a great company with a bright future.

The Big 3 have smart people and good workers. They need each other. They can set aside their differences and put together a good plan. Ultimately, they will decide if they will be part of America''s past or its future.

Next.

[newsnana]

A very one-sided report, perhaps because it was filmed in Japan. The cost per worker comparison was missing. foreign auto makers are non-union in the US, with much lower labor costs and they also avoid buying US made parts. The big three shared profits in good times via the UAW and have fixed costs in pensions and health benefits. There is also the question of dumping and restricted market entry in Asia. Do notice that smaller fuel efficient US cars have sold well in Europe. We have driven Fords, Chryslers, Buicks and an AMC with few problems over the years. Just traded in an old trouble-free Sable for the new model--which has won many awards, esp. for safety features. Our worst car was a Morris Minor.

[mike18881]

mom_o_truth, Mazda is owned by Ford. Get your facts straight.

[BeyondGreen]

Electric cars would cost the equilalent of 60 cents a gallon to charge and drive. The electricity could be generated from solar or wind sources.Fossil fuels are finite. We are using oil at twice the rate we are discovering new oil. We need to get on about the business of becoming energy independent and using alternative sources of fuel. The high cost of gas this past year seriously damaged our economy and society. While we are doing the happy dance around the lower prices at the pumps OPEC is planning further production cuts to drive prices back up. We have the knowledge, we have the technology, what America lacks is a plan. Jeff Wilson has a new book out that is beyond awesome. The Manhattan Project of 2009 Energy Independence NOW. He walks you through every aspect of oil, what it is used for besides gas, our depletion of it. The worlds increased need ie 3rd world countries becoming more modernized and consuming more. He explains EVERY alternative energy source and what role they can play to replace oil. His research is backed up with hard data and even includes a time frame and proposed legislative agendas to wean America off oil.

[mom_o_truth]

25 years of Mazda driving. First Mazda 13 years and 220,000 miles sold for $2500. Second Mazda 12 years 185,000 miles still running great. Japan knows how to make reliable, efficient and economic autos for the rest of us.

The U.S. auto makers went through this Oil crisis back in the seventies but did not learn their lesson to produce economic autos not gas-oholic monster SUVs. The amazing fact is that the gasoline producers hurt everyone, including the auto makers, with their greedy gas prices that are now dropping more than 70% in 4 months back to 2002 prices of $2/gallon.