Competitive Connection

Then and Now
In 1960, the average wage for manufacturing work was $2.26 an hour. For 2006 in the United States, the average manufacturing wage was $16.80.

What others are saying . . .
Center for Automotive Research looks at industry
Sean McAlinden, the chief economist for the Center for Automotive Research in Ann Arbor, said the Detroit auto industry is in its darkest days and that decisions made in the contract being negotiated this year will go a long way to determining how and where the Detroit automakers do business.
"Productivity will not solve these problems," McAlinden said. "We'll have to change prices -- that means wages, benefits. The problems are too large to rely upon gradual productivity -- at whatever reasonable rate -- to make a difference." –Source: Detroit Free Press, February 21, 2007
What others are saying. . .
Consumers make decisions on value
Americans are buying Toyota cars made by Americans in America. Americans are buying Hyundai cars made by Americans in America. Americans are buying Honda cars, Nissan cars, Mercedes-Benz and BMW cars -- all made by Americans in America.

It comes down to money. Consumers don't drive flags. They drive cars. If they believe a car has good value for dollar, then that is the car they buy. If they don't see that value, they don't buy. Their purchase decisions aren't based on what is good for the community, or the country, or the UAW. In that regard, consumers are much like corporations. They are in it for the money.–Source: Warren Brown, Washington Post, February 18, 2007

What others are saying . . .
About the Chevy Malibu
“General Motors has finally realized that, while people will happily buy boring sedans from Toyota, they will not from GM. So GM has worked hard to improve the quality as well as the emotional appeal of its cars and trucks.” – Source: CNN Money.com, Peter Valdes-Dapena

A look at the competition
Warranty issue at Honda
 About 6 million Honda and Acura owners will get extensions of leases or warranties, or in some cases refunds, as part of a $16 million-plus settlement stemming from faulty odometers, which chalked up miles too quickly. Because of the defective odometers, warranties expired earlier than they should have.

As part of a tentative class-action settlement, American Honda Motor Co. will:

• Extend by 5 percent the mileage-based coverage period of its warranties.
• Extend mileage allowed in leases by 5 percent.
• Reimburse customers for repairs made just after their warranties expired.
• Refund $6.1 million in fees for exceeding mileage limits to about 25,000 former leaseholders – who will receive $265 each.

"People who had been making the 300-mile trip to Grandma's house found out that Grandma had moved 12 miles away when they bought a Honda," said James Holmes, an attorney for the car owners. "With everything you know about Japanese engineering, it's hard to believe 2 or 3 percent just slipped past them," he said. --Source: The Detroit News, February 20, 2007

 

A look at the competition
Cuts at Nissan
Nissan expects to cut its hourly workforce in Tennessee by about 5percent through voluntary buyouts and early retirements.  The company is offering packages to 6,200 workers at its two plants located in the state, including its massive vehicle assembly facility in Smyrna, which builds midsize cars, trucks and SUVs.

Nissan has made critical strides in productivity at its Tennessee plants, reducing its need for manpower. Nissan is giving workers until March 13 to accept packages that promise a lump sum payment of $45,000, plus $500 for each year of service. The company employs 16,000 people in North America, with more than 9,000 working in U.S. production jobs.--Source: Dow Jones, February 20, 2007