Discuss Detroit » Archives - July 2008 » NYTimes bi-weekly "Detroit(& St. Louis) Is So Screwed" write-up « Previous Next »
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Flyingj
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Username: Flyingj

Post Number: 247
Registered: 08-2006
Posted on Thursday, July 03, 2008 - 11:35 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

http://www.nytimes.com/2008/07 /03/business/03auto.html?bl&ex =1215230400&en=2144c0053de4934 1&ei=5087%0A
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Digitalvision
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Username: Digitalvision

Post Number: 949
Registered: 11-2003
Posted on Thursday, July 03, 2008 - 11:53 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Why do the US plants not have this flexibility? It seems like a "no, duh" kind of move.

Seems like that's a lot of the answer right there for both sides.
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Retroit
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Username: Retroit

Post Number: 280
Registered: 04-2008
Posted on Thursday, July 03, 2008 - 1:32 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If I'm not mistaken, laid off auto workers make 85% of their normal pay.
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Lilpup
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Username: Lilpup

Post Number: 4603
Registered: 06-2004
Posted on Thursday, July 03, 2008 - 1:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

and if that's really the problem why did Toyota tank, too?

A discussion on the radio yesterday had the host say Asian manufacturers did well, then talk up Honda (and only Honda) while putting down the domestics. Toyota's sales drop was never mentioned.
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Bob
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Username: Bob

Post Number: 1840
Registered: 11-2003
Posted on Thursday, July 03, 2008 - 1:41 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This is not really anything new, at least around here. It was a protection that the UAW won for their members, and they will fight hard to give up that generous benefit. It does seem ridiculous to people who are outside the industry, but if you are a worker getting that, it does not seem so bad. Although I knew someone who was in the job bank who had to sit in a room doing nothing for the time of his shift, not exactly fun, but I suppose better than no money. It beats the $300 they would be getting in unemployment from the state. But if you are an outsider, you see it as just another waste of money that the Big 3 are somewhat short of right now.
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Whithorn11446
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Username: Whithorn11446

Post Number: 241
Registered: 03-2007
Posted on Thursday, July 03, 2008 - 2:07 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The 95% SUB benefit is something Walter Reuther won for the UAW in the late 1950's or early 1960's. The ORIGINAL idea was to provide an incentive for the Big 3 (especially Chrysler) to attempt a more balanced approach in their production throughout the year so that employees were generally working 40 hour weeks. Apparently Chrysler in those years was notorious for laying off workers for weeks on end and then having them return to work 60-70 hour weeks. Reuther wanted to stop that.
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Vas
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Username: Vas

Post Number: 911
Registered: 01-2004
Posted on Thursday, July 03, 2008 - 2:12 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

These are scary times. I hope D.C. bails us out if its needed.
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Bob
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Username: Bob

Post Number: 1843
Registered: 11-2003
Posted on Thursday, July 03, 2008 - 2:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Part of the reason Honda did not have a sales dip, is they never gave into making larger vehicles. They fought the urge and kept making small fuel efficient cars. Toyota is being hit with having gave in and built a large SUV, and trying to get into the truck segment. They have lots of great small cars, the problem is, they can't build them fast enough. The Prius is only built in Japan, so that is leading to not getting enough of them.
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Digitalvision
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Username: Digitalvision

Post Number: 950
Registered: 11-2003
Posted on Thursday, July 03, 2008 - 2:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Toyota tunk on truck sales.. just like the others. The Toyota truck hit was 38.9%, but their cars were only 9.4%. Honda basically doesn't sell trucks in any great volume, so in this case, they're pretty insulated.

If you have a flexible production line, you can do so much. There is little to no retooling - a friend over at a Honda plant says you can literally put almost any vehicle right after another on the same line, (even with size differences of the Element and Civic of 3 or 4 feet) so as the orders come in they can be filled.

They are even strongly experimenting with the idea of building cars after they're ordered, like they do at Dell computer, so that there is little to no excess inventory.

This allows you to whether changes in demand much better, instead of the Detroit 3, which have to idle plants and workers as well as lay people off (which by the way, few workers actually WANT to be idled - they want to do their job).
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Bob
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Username: Bob

Post Number: 1845
Registered: 11-2003
Posted on Thursday, July 03, 2008 - 2:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

FYI.....Dell is getting away from the build as you order way of doing things. Cost to much to build them to order. Instead they are pushing more people to buy prebuilt models from a selection of set-ups. Cost cutting move.

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