Myths malign American auto industry

[notacarguy]

Record proves union workers can compete with anyone in the world

By Ron Gettelfinger / Special to The Detroit News

Is the unionized American auto industry dead?

There are some who claim Detroit automakers are stuck in old ways of doing business and unable to compete with their more flexible Asian and European competitors.

It's true that today's auto companies and auto workers face more challenges than ever. But much of what is said about the auto industry doesn't square with the reality of what's being done inside today's auto factories.

For one thing, several popular vehicles with foreign nameplates are actually built here in the U.S. by UAW members, working with the same union contracts that supposedly make auto plants "uncompetitive." Our members build vehicles not only for Detroit-based automakers, but also for Isuzu, Mazda, Mitsubishi, Toyota and Volvo Trucks.

Some other misconceptions:


Myth No. 1


• Nobody builds auto plants in Michigan anymore. All the new factories are down South.

That would be news to GM, which just spent $1.5 billion on assembly operations in Lansing; to Ford, which spent $2 billion to rebuild the Rouge complex in Dearborn; and to DaimlerChrysler, which partnered with Hyundai and Mitsubishi to build a new $700 million engine complex in Dundee.

Packed with the latest technology and powered by ultra-modern conveyors, these facilities are flexible enough to produce multiple vehicle and engine models -- and ergonomically designed to prevent workplace hazards and injuries.

Continued at: http://www.detnews.com/2005/editoria...A17-340003.htm

[desmo9]

Myth # 2 is proof that Gettelfinger just doesn't understand business.

[carlover]

Originally Posted by notacarguy

....The Big Three are still way behind their competitors on quality.
Not according to J.D. Power's 2005 Initial Quality Study. This influential report found that ...

Continued at: http://www.detnews.com/2005/editoria...A17-340003.htm

Here we go again, the UAW king is blessing the INITIAL quality study. Yes, you are able to install the cupholders allright, but how about long-term reliability, any positive surveys there??? guess not

[member12]

Originally Posted by carlover

Here we go again, the UAW king is blessing the INITIAL quality study. Yes, you are able to install the cupholders allright, but how about long-term reliability, any positive surveys there??? guess not

Long term reliability depends as much on engineering as on labor. If the quality of materials used is poor, the car will fall apart after 50000 miles. On some past models, I seriously thought GM designed their cars to fall apart after the warranty was up.

But, in order to have a reliable car for the long term. It does, indeed have to be put together right, and quality control must be very good.

[tgagneguam]

Originally Posted by carlover

Here we go again, the UAW king is blessing the INITIAL quality study. Yes, you are able to install the cupholders allright, but how about long-term reliability, any positive surveys there??? guess not

Rather than being a typical pessimist and assuming the worst - oddly, as Gettelfinger suggests people do presently - perhaps you could extend us the courtesy of doing research and proving what you suggest rather than assuming Detroit sucks in the longterm dependability department. It's funny that you fell into Gettelfinger's trap, and he's generally a moron!

Incidentally, if anyone it's Hyundai that has high IQS scores yet still lags in longterm dependability studies.

[tgagneguam]

Rather than adopt a completely pro-product tack, which could mean something to customers, Ron decided to throw in the UAW member thing, which might be superficially appropriate, as he's the president of the UAW. But I think it muddies a message that could have otherwise resonated well with the car-buying public.

Perhaps had Ron stuck with Myths #1, #3, #4, and possibly the first paragragh used to contradict Myth #5, this would have been a true pro-Detroit article that people could have embraced. I suspect people could give a rat's ass about UAW member productivity (particularly when Ron fails to provide non-Union worker productivity measures for comparison), and people really don't buy cars in large part to support the benefits of employees and retired workers; talk about missing your audience.

It's my contention that the UAW and the Detroit 2.5 need to work together to get the message out that the cars and trucks they build together are, at minimum, equally as good as their foreign-badged counterparts.

I suppose this article is a decent first effort, though.

[01cavalier]

If the unions actually got behind GM and Ford instead of constantly battling with them, and helped in pushing their product since they are good, maybe they will serve a good purpose instead of causing too many headaches. I just wish all his information was truly correct.

[mjd1001]

There is one point that is noticable by it's absense from this article:

-While I'm sure UAW workers can/do build cars and do as good of a job as foreign auto makers, they aren't willing to do so at competitive wages.

[Pro GM and Ford]

"For one thing, several popular vehicles with foreign nameplates are actually built here in the U.S. by UAW members, working with the same union contracts that supposedly make auto plants "uncompetitive." Our members build vehicles not only for Detroit-based automakers, but also for Isuzu, Mazda, Mitsubishi, Toyota and Volvo Trucks."

But foreign companies don't have the masses of retired workers and their families to pay for, as American companies do. These "legacy costs" are a huge, unsustainable burden for US companies, but don't exist for Toyota, et al.

[WoodyGnX]

interesting point with the legacy costs. Sheds light on a possible reason that whenever anything innovative is released it has been overpriced. Companies are getting better though with the Solstice and GTO.

[mrfunji]

FARCITY - MYTH 2

So if what, each UAW member adds $463,000 in value to their employer per employee? So lest we forget this is the ENTIRE UAW, which is spread across the whole US of A for all companies like Delphi, GM, Ford, DCX, GM/Toyota Nummi plant, etc, I think that may be a bit generous.

The uaw.org website states that there are approximately 620,000 active UAW members now. So 620,000 * 463,000 = 287,060,000,000. That is TWO HUNDRED AND EIGHTY SEVEN TRILLION DOLLARS. Even if those 620,000 were paid 150k a year (which they aren't) that equates to 194,060,000,000. And yes, that is TRILLIONS OF DOLLARS. And let's say there are 1000 companies that these 620,000 work for. That's 194,060,000 = 194 BILLION. You could buy GM, Ford, IBM, and even Toyota for that amount of money.

Well let's see. Hmmmmmmmmmmmmmmmmmmm

One phrase. I DON"T F'ING THINK SO!

[DuSpinnst]

Originally Posted by carlover

Here we go again, the UAW king is blessing the INITIAL quality study. Yes, you are able to install the cupholders allright, but how about long-term reliability, any positive surveys there??? guess not

GM's quality has significantly improved in the last 5 years so expect those long term reliability surveys to start posting positive in the next few years.

[DuSpinnst]

Originally Posted by Pro GM and Ford

"For one thing, several popular vehicles with foreign nameplates are actually built here in the U.S. by UAW members, working with the same union contracts that supposedly make auto plants "uncompetitive." Our members build vehicles not only for Detroit-based automakers, but also for Isuzu, Mazda, Mitsubishi, Toyota and Volvo Trucks."

But foreign companies don't have the masses of retired workers and their families to pay for, as American companies do. These "legacy costs" are a huge, unsustainable burden for US companies, but don't exist for Toyota, et al.

Exactly.

I also think Big 3 gets shafted on quality, and on choice. GM makes oodles of cars for all segments, yet most import lovers complain about the lack of "reasonable" choices for them.

[Dizzer]

Dear Ron -
The primary motive of a business is not to provide employee benefits and high wages. It is to return sufficient funds back to share holders so that the company may continue to attract investment capital in order to grow. Period. Your model is dead. It died at about the time the Ed Sullivan Show went off the air on Sunday evenings on CBS. It died with tail fins. We are in a global market place now and if I may offer a suggestion - Start considering how to develop Solidarity House on Jefferson Ave. into luxury condos.

[mike's 01ws6]

Originally Posted by mjd1001

There is one point that is noticable by it's absense from this article:

-While I'm sure UAW workers can/do build cars and do as good of a job as foreign auto makers, they aren't willing to do so at competitive wages.

And asian countries have artificially manuipulated their currency value to keep their goods cheaper. Maybe the US needs to do the same to be competitive on the world market.