Andylusion
Platinum Member
The problem is that US companies put money into their union workers instead of their product. This was explained to me by my mechanic when I last owned an American car.
So after I got rid of that piece of junk, I went to Toyota and never been happier. Never been towed, never been late for work, never been stranded anywhere, because Toyota put their money into quality than labor. That's why Toyota can give you a 100,000 mile 7 year warranty on their products and American companies can't.
If you go to an American dealership, and compare a 50,000 mile used car compared to the price of a new one, you'll find a huge gap. Do the same at Toyota, and you'll see how much value their used cars have kept.
The engineers aren't union.
That's irrelevant. Engineers are paid for out of profits. Profits is produced by the price minus cost of production. When you drive up labor costs, you have to lower the cost somewhere else, in order to have a profit.
The people designing the cars that break are irrelevant? Really?
Yes, they are irrelevant.
You not getting this.
You can't put into a car, parts that are so expensive that the car no longer makes a profit. If the price of labor is higher.... the cost of the parts MUST be lower. Engineers can't make a part that costs 3¢ and lasts 200 years. If they engineer the part to last longer, is always costs more. But a Chevy Metro, doesn't magically become worth $30,000, because they have an alternator that will last 100 years.
So the cost of the car doesn't really change. A $20,000 sedan, will not bring a higher price, because they put in a better alternator.
Thus, as the price of labor costs go up.... because of Unions.... the cost of parts, has to go down. They have to cut cost, in order to make a profit. So they put into the car, the crappy alternator, that hopefully lasts until it's out of warranty.
The issues were all design and engineering based. so far you have backed up your claim with no proof. What parts are you talking about? How is it Japan has union workers in Japan without the issues you claim?
Couple of things.
Engineers at car companies are presented with requirements they have to work within. When the company tells the engineers part X has to be cheaper, then engineers have no choice but to cut the price of the part, by designing it more cheaply.
I worked at a dealership back in the early 2000s. In fact I was working there on 9/11. One of the things I learned there, was that older Cadillac alternators were better, than the newer alternators. That's why I picked that part as an example. The way I found out about it, was I saw a mechanic pull in his own Caddy, and replace the stock alternator, with an older one. Both alternators were exactly the same, except the new one, was smaller in size, and much lighter. The small size meant it dissipated heat less, and would wear out faster.
I came to find out all the guys there did that to their own cars. Ditched the new alternator (sold it usually), and replaced them with bigger older models that lasted forever.
Why did they have a perfectly good alternator that would last longer than the car, and engineer a new one that didn't last? Answer.... Cost.
Now why would the company require the engineers make parts that were cheaper? Union labor driving up the cost of labor, means the parts going into the car have to be cheaper.
As for Japan unions, Japan has been in an economic stagnation for decades. It is entirely likely that Unions are playing a major part in that.
But there is actually a bigger reason. Unions are not magically all the same. A union in the US, is not the same as a Union in some other country. Sometimes they are, but that isn't a given.
For example, Unions in Germany are extremely pro-corporate. Corporations are not vilified around the world, like they are here in the US. France, Unions attack corporations. Which is why companies are pulling out of France one by one. But in Germany, and Japan, corporations are seen as benefits to the country, and to the public, and to the workers.
So one reason Japanese Unions have not driven their companies into bankruptcy, is because they actually "like" their companies, and "like" their jobs, and are happy to have a good job.
In the US, we had the Unions meet with Hostess executives, and the Execs said openly, if you strike, we will simply declare bankruptcy and close the company.. The Union voted to destroy the company. That would never happen in Japan.