Detroit/Japan Differences

[mojammer]

I apologize if this has already been covered; I found this article interesting:

http://www.nytimes.com/2008/11/19/opinion/19romney.html?_r=1

One point he made is that the estimated extra burden the americans have is about $2000 per car.  Does anyone else know more about this?  Is it close to accurate, or is this guy talking out of his ass?

[Vinsanity]

I remember reading that Romney piece in another publication somewhere; I don't know if the car czar appointment is still part of the bailout plan, but if it is, this is probably the one guy that should take the job.

[MX793]

I've read several reports and all would indicate the US domestic manufacturers have an extra burden of between $1500 and $2000 per vehicle when you throw in their generous benefits for both current and retired workers.

[Byteme]

I've read several reports and all would indicate the US domestic manufacturers have an extra burden of between $1500 and $2000 per vehicle when you throw in their generous benefits for both current and retired workers.

For GM the difference is about $21 an hour.  From:  http://www.cbsnews.com/stories/2008/12/19/business/main4677571.shtml?source=RSSattr=U.S._4677571

The Associated Press reported that, for example, the average United Auto Workers member makes $29.78 per hour at GM, while Toyota pays its workers (most of whom are non-union) about $30 per hour. However, when total benefits (including pensions and health care for workers, retirees and their spouses) is factored in, GM's total hourly labor costs is about $69, while Toyota's is about $48.

And you can't ignore all the tax breaks state and local governments have given foreign manufacturers to build plants in the US, in their backyards.  Those have helped lower theier cost of making a car in the US.