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Old 04-18-2008, 02:52 PM   #1 (permalink)
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Great Pay But Not In Detriot

http://www.businessweek.com/magazine...eadlines_daily
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Some of Toyota's U.S. plants are now more than 20 years old, and a growing number of its workers are paid the top wage of about $25 an hour. That's less than Detroit's veteran union hands make now, but a contract inked last fall will enable U.S. automakers to replace many highly paid employees with cheaper workers. By 2011, Toyota's cost advantage over Detroit could disappear. "The Japanese automakers have been here for almost 30 years," says Michael Robinet, an analyst at CSM Worldwide, a Northville (Mich.) research firm. "They'll start to have Big Three-like costs creeping in."
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Old 04-18-2008, 03:19 PM   #2 (permalink)
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Re: Great Pay But Not In Detriot

Well... whatever it takes....
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Old 04-18-2008, 07:42 PM   #3 (permalink)
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Re: Great Pay But Not In Detriot

Fortunately, the Union is fighting valiantly for its own demise.
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Old 04-18-2008, 09:32 PM   #4 (permalink)
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Re: Great Pay But Not In Detriot

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Originally Posted by TheGeneral View Post
By 2011, Toyota's cost advantage over Detroit could disappear. "The Japanese automakers have been here for almost 30 years," says Michael Robinet, an analyst at CSM Worldwide, a Northville (Mich.) research firm. "They'll start to have Big Three-like costs creeping in."
I wonder what about plants at Japan. RAV4 builded at both Tahara and Ontario and price is the same. But is the build quality the same? ... Mr. Deming, what have you done.
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Old 04-19-2008, 12:35 PM   #5 (permalink)
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Re: Great Pay But Not In Detriot

The Japanese will wake up soon and make some changes. As the workers get older and pay and benefits start eating into the bottom line they'll move production somewhere else. States (and nations) will compete and offer them the sun and the moon to locate in their area.
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