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To: meyer
Bottom line - It costs the big three around $3000 more in labor costs to build a car of equivalent size, features, and quality as it does a non-union manufacturer in the US. That's why Toyota is making money and GM is not.

Is it strictly labor costs? What about regulations, taxes and government interference? Why does everyone put the full onus on the labor?

46 posted on 12/12/2008 5:34:03 AM PST by raybbr
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To: raybbr
Is it strictly labor costs? What about regulations, taxes and government interference? Why does everyone put the full onus on the labor?

That's just the cost-of-workforce portion of the difference. It doesn't take into account the excessive costs of all the fun union gamesmanship (and yes, I was a union member for 11 years - there's plenty of games being played). And it doesn't account for the lack of flexibility of the workforce at the big three.

If you look at the numbers in an earlier post, you'll see that the difference between Toyota's $17.7 billion profit and GM's $37.8 billion loss amounts to about $6000 per vehicle. That's a huge gap!

47 posted on 12/12/2008 5:44:56 AM PST by meyer (We are all John Galt)
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To: raybbr
What about regulations, taxes and government interference

Aforementioned affects every manufacturer equally in the US.
You are trying to defend the indefensible.

65 posted on 12/12/2008 7:02:59 AM PST by realdifferent1 (We've tried the soap box, jury box and ballot box. Only one box left.)
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To: raybbr
“Why does everyone put the full onus on the labor?”

I certainly don't. GM has been mismanaged for 30+ years. That's why I want GM to declare bankruptcy via Chapter 11, and be forced by creditors to reorganize with a new management team (and new labor contracts) in place. Why the President wants to throw $20b in TARP money at the same bungling fools who drove GM into the ditch is beyond my comprehension.

75 posted on 12/12/2008 10:14:53 AM PST by riverdawg
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