On Sun, Feb 27, 2011 at 1:27 PM, Bob Sullivan <rf.sulli...@gmail.com> wrote:
> Frank,
> I wouldn't spin it so anti-auto maker management.

I'm not saying that unions didn't or don't have a hand in the current
state of things, but I think it's naive to put ~all~ the blame on
unions (as I perceived had been done by Paul).  Despite what you may
think, I'm not some union lackie.  These top-heavy organizations often
put their ~own~ needs before those of their own workers...

> Managers gave the union the wage and benefits packages they wanted,

No, the unions and the companies worked out an agreement that they
~both~ agreed on.  They danced the dance, didn't they?  Unions asked
high, companies responded low and they eventually met in the middle.

> then passed the costs onto the consumers.

While maintaining their profits, I'm sure.

> Low priced cars like the VW Beetle made inroads in the US market.
> Customers began to vote on price and managers responded.
> Unfortunately the rush to take costs out also affected quality.

And there's the crux.  A decision was made to compromise quality.
That was a management decision.  Do you really think that Ford
couldn't have made a better car than the Pinto?  GM the Vega or
Firenza?  You make it sound like an inevitability;  it's just
"unfortunate" is all...

NO!  It was a decision to cut corners, put the consumers lives at risk
(covering up problems) and try to sell as many units as possible.
These people aren't stupid, they made decisions.

> Eventually the foreign makers were shipping in cars created
> with better quality by employees paid a lower wage.
> High trade barriers would have been the only chance to keep
> the high US union wages, but foreign workers wanted a share of that 
> prosperity.
> Why would you favor American workers over Foreign workers?  :-)

C'mon, Bob.  My guess is that German workers make as much as
Americans, and did back in the 60s and 70s.  People kept buying
Volkswagens and BMWs long after they were more expensive than
similarly sized American and Japanese cars.  Detroit simply refused to
make a BMW 2002 when they could keep selling Dodge Darts.

cheers,
frank

-- 
"Sharpness is a bourgeois concept."  -Henri Cartier-Bresson

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