The United Auto Worker’s greed continues to hold manufacturers and the consumers hostage. The current American auto industry business model is a failure, and to allow it to follow this path and pump billions of dollars into a model that will continue to fail is insanity. I have closely listened to the debates over the past few days, and I have concluded that I would rather see GM, Ford, and Chrysler die this year than watch the death rattle drag on into the next decade at the taxpayers’ expense.
Trust me, this hurts me. I love MOPAR. I have watched the maker of such beautiful cars like the ‘69 Dodge Charger, the ‘74 Dodge Challenger, the ‘68 Dodge Hemi Coronet, and of course the new Challenger Hemi SRT8 (Hemi made in Mexico) go through its ups and downs. With the dedication I have for Chrysler (yes I drive a Chrysler PT Cruiser convertible, which was MADE IN MEXICO), the manufacturer doesn’t share that same dedication for me, the consumer. Let me explain.
The mismanagement of car companies force huge odds against making a profits. The fact the UAW prices its labor and benefits at extreme rates forces the price of these cars higher and higher each year. The average American consumer is left with few options when it comes to buying a new car. With higher prices come higher monthly payments. Loans have gone from 36 months to 72 months to keep these monthly payments affordable. Most American cars don’t stand up to the average wear and tear of six years. Many Americans look in another directions.
I have gone down the Japanese road. American tariffs, thanks to UAW lobbyist, have pushed the price tags of these cars up. I felt guilty at first when I bought my first Toyota, but understanding the economics of the American car industry caused my guilt to die quickly. Many of these non unionized Japanese auto plants have found homes in the United States and provide Americans with good jobs (there is a ‘new’ car industry growing in the South). Most of them are doing well considering the economy. And where is GM, Ford, and Chrysler opening plants to compete? MEXICO, and Chrysler has been in talks with China to produce a small, fuel efficient model.
Why is it that American car manufactures are moving to Mexico and yet the cost of American cars don’t reflect the labor savings? It’s simple. The contracts with the UAW are so outrageous that they can’t cut cost and pay benefits.
Daimler sold Chrysler is for this reason. The union pensions were draining the company. The bailout is mostly for the UAW to continue to pay benefits.
Frankly, I am tired of being a slave to the UAW. The last two decades have seen price breaks in so many industries for the average consumer, but not in the car industry. I say it’s time for Detroit to reinvent itself and say goodbye to the UAW.
If they aren’t willing to kiss them goodbye, then good riddance to the Big Three. It’s been nice knowing you. You have priced yourself out of my life while lessening the quality.
I once used to fear any of the Big Three going under, and now I see the possibility of all three going under. I say don’t give them a dime. They have done this to themselves, and they have failed to reinvent themselves by ridding themselves of the UAW. Simply put, the time is past for the UAW and they are no longer effective in the global economy.
You are screaming what about the jobs? When it comes to being a member of the UAW or feeding your family and maintaining a living, I would choose my family. If the auto workers want to choose the UAW, they need to face the fact their jobs have been placed on life support. They aren’t coming out of the deep coma.
I guarantee you this will be the best thing for the American consumer. When you go to look at that new shiny car on that showroom floor, you will know the sticker doesn’t contain the hidden cost of outrageous UAW benefits. In other words, prices go down, and you win.
Author: Clay Bowler
Originally published at WesternFront America
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