Excerpt Of The Day: How Unions Are Running The Big 3 Automakers Into The Ground

“According to the latest calculations, the gap between Japanese and American carmakers’ profits average out to about $2900 per vehicle, and the home team does not have the advantage.

A big reason is the cost of labor. As analyzed by Harbour-Felax, labor costs the Detroit Three substantially more per vehicle than it does the Japanese.

Health care is the biggest chunk. GM, for instance spends $1,635 per vehicle on health care for active and retired workers in the U.S. Toyota pays nothing for retired workers – it has very few – and only $215 for active ones.

Other labor costs add to the bill. Contract issues like work rules, line relief and holiday pay amount to $630 per vehicle – costs that the Japanese don’t have. And paying UAW members for not working when plants are shut costs another $350 per vehicle.” — Alex Taylor III

Hat tip to Mickey Kaus for the story.

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