Great graph comparing wage and benefits between US and Japanese auto workers

[Hamlette]

(Cross post from GD)

This is Ford but I'm assuming the other two are similar.

Notice its the legacy costs that are causing the big difference. As is explained in the article, the difference in legacy costs is that Ford has more retirees than Toyota because its been in business in the US longer.

The article also points out that another problem is that people have more faith in Japanese cars and it will take longer for the US makers but build a good reputation. I think another problem is US auto makers have concentrated on bigger cars, actually, trucks and that is the market they serve. I know people who own big trucks because they need them for work and they love their Chevy or Ford and there are no big trucks made by Japanese mfgs.

http://www.prospect.org/csnc/blogs/ezraklein_archive?month=12&year=2008&base_name=is_detroits_problem_wages

[tsuki]

1. They need to give us the legacy cost of the two catagories, workers

and Upper Management.

[Hamlette]

5. really? who cares?

legacy costs have to do with the length of time the companies have been in business

[lligrd]

2. The UAW Is Providing Some Answers

From UAW.org

Q: Do labor costs make up the majority of the cost of producing a vehicle?
A: No. Labor costs are about 10 percent of the costs of producing a vehicle. The other 90 percent includes research and development, parts, advertising, marketing and management overhead.

[leftofthedial]

3. find a "great graph" comparing US executive pay with Japanese executive pay

hint: you'll need a much larger monitor to show the US executive side of the graph.

[Hamlette]

4. does it matter if its a tiny fraction of the cost of doing business?

I'm not defending excessive CEO pay but I understand it is a tiny fraction so why does it matter?

It's like everyone complaining about welfare which is less than 2% of the budget.

[leftofthedial]

6. because it is an artifact of the entire corrupted, capitalist-infested system in the US.

[jaw11]

7. some data

This is a link to a blog comparing average US executive salaries/compensation to those of comparable Japanese executives, in this case, bankers.

http://laborrightsblog.typepad.com/international_labor_...

The graph posted on this forum comparing American company (Ford) auto worker pay with Japanese company US auto worker pay is misleading in certain ways (though interesting in terms of the breakdown). It's misleading when you consider that Toyota wages are actually higher than the Big 3 wages by a dollar or two or three an hour. Honda and Nissan are a little lower but Toyota is higher. So the generalization that "Japanese" companies are more competitive because they pay less is false. Toyota is the most competitive of the three big Japanese companies and they pay higher wages in the US on average than the US companies pay their workers. So much for the connection between higher wages and competiveness and blaming the workers based on comparison with the Japanese companies.

http://www.aftermarketnews.com/Item/28594/uaw_losing_pa...
http://www.daytondailynews.com/n/content/gen/ap/Auto_Wo...

But the media won't report this. I guess they have their agenda.

http://mediamatters.org/items/200812060002

What i am trying to understand is, why are the Japanese cars called "imports" if they are made in the US? What percent of the American market for Japanese cars is supplied by cars produced by US companies and what percent are produced in Japan? Are some of them bought from companies made in Japan? Since Japanese health care (and old age pensions?) are state funded, this would obviously reduce production costs for companies producing cars in Japan--the point being, if the US wants to have globally competitive companies, the US government should take over the responsibility of providing health care benefits, as is done in other civilized companies with which the US competes. Otherwise, how can US companies compete? I imagine there may be high protectionist tariffs on imports but i haven't found this information yet.