Building A Better Automaker

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

(CBS)  Toyota, like other car markers, is trimming production as sales fall. So it might be a surprise how workers there feel about the future of their jobs.

"I am very secure in my job," said autoworker Bryan Gorden. "I think we make a quality product."

That's because these Texans work for a Japanese company, CBS News correspondent Barry Petersen reports.

"I kind of feel like Charlie from 'Charlie and the Chocolate Factory,' because I got the golden ticket," Gorden said.

Job security is a Japanese cultural tradition - a belief that workers are so important they are the last to be cut.

When Tundra pickup truck production stopped here for three months, some workers were out the door all right -- but on a furlough spent doing community service in San Antonio parks at full pay until the assembly line restarted and they went back to their regular jobs.

For running a tight, employee-friendly ship, the head of Toyota makes roughly $1 million. His company will make $5 billion, even in this tough year.

Ford's CEO makes a lot more, and losses could hit $7.5 billion.

At GM, good pay for the boss, and losses of $15.9 billion.

Lower salaries mean that for Japanese automakers, it's not about bailouts, but rollouts. Like the first Honda Civic at a new plant that opened in Indiana this week.

And having cash on hand for designing ever more new models despite a bleak outlook from the head of Nissan.

"The U.S. market remains extremely depressed, Europe continues to go down, Japan continues to go down," said Nissan's CEO, Carlos Ghosn.

But Nissan isn't letting tough times crimp the push for new technology.

A sleeker version of their all-electric car will hit American streets in about 2010, and in 2012, there will be one in a showroom near you, with a range of about 100 miles, or maybe more.

While the Big Three worry about paying their bills next month, Japan's car markers are already planning for next year and after … so that when the recession ends, Americans will have even more reasons to buy Japanese.

[valenzdoc]

there''s something to be said about using good business practices. I agree that the founding fathers for the big 3 would be so disappointed. These ceo''s lust for the dollar has blinded them. If they are able to overcome this I hope they rid themselves of those who put them in this position and begin to think "long term" solutions.

[hitoyou1]

The wages of the UAW didn''''t kill Detroit. Less middle class in America able to afford new cars killed Detroit. "YES THE WAGES OF THE UAW DID KILL DETROIT"

[hitoyou1]

The UAW is BS. Not wortha dime, don''t know what work is, are wortless at doing anything, they can drink beer and do dope, but that is all. They don''t want anything but a hand out. Nost can not do a days work and never will do a days work. Union are good for one thing, keeping paople at jobs they can not DO. Some one to keep there job for them, that is why people are in a union.

[andylance1]

Congress should give 25 billion each to Toyota and Nissan to build factories in Michigan and tell the big three to go to hades where sun don''t shine.

Ford and GM have had very few decent cars made since the 1960s. Detroit cars don''t get better, they get bigger and longer and thirstier. Detroit management and union druggies and alcoholics have dug their own grave - RIP.

[emperorlotku]

Last night CNN aired a broadcast from The Upper Deck Tavern in Moraine Ohio. It is right next door to the GM Moraine Assembly plant. This bar specialized in lunches where the "quality" union workers would get as many beers consumed as possible during lunch and then return to work to put brakes on cars that our children are in. It is also next door to the GM parking lot where all the drug trafficking has been occuring for decades. Now the drinking and drugging was tolerated because the "entitled" union workers were protected by a system that expected the lowest quality from the least qualified. Only half of the union workers that "worked" this plant had a work ethic that could be transferable to another job environment. Most of them will have a huge problem getting reemployed because of the sad reputation of the unions.

[babooph]

THE OLD SET UP OF LOBBYISTS GETTING IMPORT QUOTA & TAXES ON FOREIGN AUTOS-will continue,combined with our best engineer graduates going for war stuff& the big $$,leaving 2nd rate design for consumer goods-it clearly failed,but corruption has no bottom.

[jsd330]

billpl Wake up the UAW has no say on what the companies build, never have and I doubt they ever will. The CEO''s and the MBA''s look at what the designers come up with and then they decide if it is profitable to produce.

[cjw3cma]

PLEASE let the American automobile industry declare bankruptcy and do the necessary reorganization that is so overly due. Henry Ford would be ashamed of what his car company has become. Hundreds of millions of dollars paid to top executives for doing what? The same job that almost everyone does for 1/3 the money (if not 1/4). Let them fail. From their ashes may come 21st century minded organizations that will produce fuel efficient products that the current American companies have fought tooth and nail to keep from being implemented. No excuse that comes from the mouths of the auto execs is to be believed. Let them fail.

[newlector]

I think the real problem is the Union, the employees are OVER PAY, and all the benefits they have!!!
I hear they have 12,000 people who are standby earning $73.00 an hour...that sucks.
The CEO''s are waiting millions of dollars.
Facts:
Not all of us like American cars
Most of them are ugly and over price
They offer lower miles per gallon

Toyota, Nissan, Honda even Hyundai have better cars for the same amount of money or less...and these cars are made in USA.
Buy and American car now any brand and try to sell it one year latter and you see how much you can get IF YOU FIND A BUYER!!!
Buy a Japanese or Korean car and you will have a different experience, don''t believe me, check the Blue Book or go to Edmund.com
Being patriotic is GOOD being Stupid is Wrong...

[beach671]

Quit selling out American workers. They have families they are trying to support. Detroit made $15,000 profit on every single SUV. The American pony car is full of Communist China parts.how much profit from the Ford Mustang is being made while everyone wants to kill yet more American jobs and their wages?

Our purpose should not be to make Kings who get all the money and profits and demand we get less and unable to buy those Detroit cars.


Quit killing the middle class, or the economy will get much worse. The wages of the UAW didn''t kill Detroit. Less middle class in America able to afford new cars killed Detroit.

[billpl-2009]

UAW ooops :-)

[billpl-2009]

Side note about the UWA.

Over the past fifty years there were how many strikes and boiler-plate contract negotiations?
And all about what?
Wages,overtime, work conditions, pensions, vacations, benefits....

But not a single demand about
designing better, more competitive cars for them to build
or fuel efficiency and air pollution
or quality control standards
or building better tooled plants
or plant and manufacturing efficiency
...no, nothing, nada

the UWA can eat my shorts

[hober_mallow]

"The last two cars I bought with american names, one gmc,one Dodge were assembed in Mexico..."

I know. A couple of years ago, I traded in my Toyota pickup (made in U.S.A.) to buy a Dodge Ram pickup. I figured, hey, I''ll do my part to help out Detroit.

Well, guess what. The Dodge Ram was made in Mexico.

About a year ago, while it still held its value, I traded it in on another new Toyota, made in the U.S.A.

[hitoyou1]

"temporary" Help. Good. There are A LOT of U.S. companies that do the same thing. One of, if not the bigges tool maker in the WORLD has ove 50% temporary workers. Whats the big deal. Better than paying the no good UAW a lot of money and have the company go BROKE.

[hitoyou1]

Easy, GET the UAW OUT.

[tawabill]

The writer of this piece obviously hasn''t looked at Toyota''s practices in its home plants where the company uses lots of "temporary" labor that is paid far less and has almost no benefits. Toyota also expects a lot of unpaid work and has had to pay pensions and awards to the families of employees who were literally overworked to death.

Toyota''s monthly sales report includes details of what percentage of the vehicles sold were produced in the U.S./NAFTA and what percentage were produced in Japan.

A worker in the Toyota plant in Georgetown, Kentucky makes an average of $25/hour. A UAW worker makes $28/hour and new hires in non-assembly jobs can be paid $14/hour. Yes, the UAW benefit package is lavish, but a lot of the cost is healthcare over which neither the automaker or autoworker has any control. You want to see some improvement in that area, support healthcare reform.

In addition, the UAW has already made a number of concessions and has indicated it''s willing to make more to help the automakers. Contrast that with the three CEOs who flew on private jets to Washington and get free cars with even the gasoline and insurance paid.

[koyt1]

Thank God our representatives are not willing to hand over billions for the auto industry to **** away. They must change their way of doing business if they are going to compete.

[qutlaw104]

The last two cars I bought with american names, one gmc,one Dodge were assembed in Mexico.

[avengertiger]

As a visitor to the US from the UK.

This whole story is like history repeating itself. If you want to see where your car industry is headed if things don''t change, look at what happened to the once proud, market leading UK car industry.

In the 70''s the car companies were badly managed and strangled by strong,but greedy and short sighted unions. The government poured good money after bad, but the car makers still produced poor quality, unreliable *** that no one wanted!

Then the Japanese introduced their not very exciting and strange offerings. They were boring to drive and looked pretty ugly, but guess what - they didn''t break down or fall to pieces and offered great value for money.

Roll on a few years and see what happened, the UK has no home grown (volume)car industry of which to speak. The cars that are produced there now are high quality, reliable, economical and right for todays market. Their names? Toyota, Nissan, Honda - sound familar?

Come on guys, to use your expression, ''wake up and smell the coffee!''. Save your auto industry while you still can. Managers, designers, workers you can do it if you beat the *** at their own game.Put all your skills and efforts together.Make it happen! Good Luck!

[rickwar]

Simplistic artice, simplistic conclusions.

The Japanese heavily subsidize and protect their auto industry, the CEO also has guaranteed healthcare, retirement. Also if you look carefully that''s the BASE salary, not total compensation which the Japaneese do not report. GM CEO''s base was 2.2 mil last year.

Anybody care to ask the guy who wrote this artice got paid? Anybody ask how much the CS CEO gets? How about Letterman? Should he be paid less?

So, be jealous of what others make and tell us more bedtime fairy tales, because, their are those out there that will just suck it up and believe the BS