Good grief Cutlass, you are completely out in left field here.
Do you know what happens when, because of the need to reduce manufacturing supply, an American autoplant closes for a few days?
Do you understand that the per-car profit in the US is non-existant, while in Japan it is an average of $3000?
Do you realize that GM pays out nearly $2,000 in health care benefits per car?
The Unions have crippled the auto industry. They cannot make money. Don't give us this bull about quality...your stuck in the 1980's. American cars and trucks frequently rank very high in consumer quality rankings. The safety records of American cars are excellent. It is not the product, it is the costs!
You are right about one thing, the quality levels of currently produced automobiles are partly to blame. Instead of buying new cars left and right, Americans are keeping their cars longer because they can.
Productivity in the American auto industry is in the toilet, while in nearly every other American productivity is first-class. Why? Because these unions imposed hourly standards, while in Japan such standards don't even exist. UAW wants (and gets) 2X overtime pay...who the hell can afford that?
Constant, crippling strikes don't help either Cutlass. Remember that stirike last year at GM that lasted for 5 days? Do you know what the union was crying for? A STOP TO THE OUTSOURCING! As well as increased retirement packages and part-time full-time conversion. It really is a joke.
You say it is not costs--explain how Toyota and GM both make nearly the same revenues every year and yet Toyota turns billions in profit while GM loses billions? Perhaps it is the underlying costs of producing one car?
Merk addressed the union problems pretty well. I don't need to repeat everything he wrote. But you haven't addressed any of his arguments, including why foreign automakers in the US have such greater profit margins per car than do American ones. You probably don't even need a hint.
Labor Unions have lost much of their power in the last 30 years. American productivity has increased too. However, and unfortunately, the labor stranglehold on the auto industry is alive and well.
One thing is for sure, if I were operating an auto manufacturer, I would get out of the US and go elsewhere. Dump the union whiners and find people who really want to work hard to earn a fair wage.
Floor workers at American Axle make on average $70 an hour.
There is no way a Union stranglehold on any American Company won't prevent the inabliity to compete on a global market. There is two ways an American auto manufactuer can save themselves: lower costs (including wages and employee packages) or move offshore. Guess what won't work?
~Chris