The Cost of Cars
Sunday, on ABC's "This Week," Gov. Arnold Schwarzenegger, R-Calif., told George Stephanopoulos that workers pay and benefits were "maybe too high."
"I think it's very important to not just put money in, but let's go and see if they have been fiscally responsible, and if they're really operating the right way. Because right now ... the auto workers ... the benefits and all of those things, are maybe too high. Right now, if you compare it to Germany and to Japan and to other countries, they can build cars cheaper, and they don't have that overhead with the amount of what they pay to the workers, the benefits they provide," he said.
"In America, you sell a car, and $2,000 of each car just goes to benefits," he said.
I found this quote on ABC's website in an article about the UAW resisting concessions. In that same article it pointed out that the latest UAW contract has workers earning $27.00/hour plus benefits, some of which, according to the new contract are paid by the Union itself, not the Company. In any event, what I thought was interesting is the comparison of costs to built cars in this country to others. Of course car companies in other countries have it better, there the government supports its citizens with health care and other benefits that are the responsibility of industry in this country. Its a completely unfair comparison. We could produce cars as cheaply here is we were to take health care and retirement out of the cost equation as well.
But then, who will pick up that huge tab?
Be well.