Why a Detroit bailout will fail

"Total compensation per hour for the big-three carmakers is $73.20. That’s a 52 percent differential from Toyota’s $48 compensation (wages + health and retirement benefits). In fact, the oversized UAW-driven pay package for Detroit is 132 percent higher than that of the entire manufacturing sector of the U.S., which comes in at $31.59."
Not that a Democrat congress will be deterred from a bailout when their union voters are at stake.
Meanwhile, there are no less than ten new automaking startups daring the current economy. Wow.
UPDATE: What one Ford Focus drove its owner to do to save almost two thousand dollars in repairs.

0 responses to “Why a Detroit bailout will fail

  1. Yep. Let’s have some economic Darwinism. Let GM fail, bail out Ford and send a rather imperative message to the UNIONS. Invest the bailout effort in the automotive sorts the PM article covers.

  2. Better might be to let the Big Three fail and the Little Ten buy up their physical plant piecemeal. But the UAW would never forgive the Dems and other unions would hear of it.