http://business.theglobeandmail.com/servlet/story/RTGAM.20090414.wrfiat15/BNStory/Business/home
General Motors in America was given until June 1 to solve their problems or they will be forced in a bankruptcy by the American government and now Fiat is prepared to walk away from the Chrysler deal if the Canadian and American unions don’t lower their wages to at least twenty dollars an hour.
The American auto manufacturers have to be competitive with the overseas car companies.
When you look at it the government of the foreign car companies have always subsidized their national car companies because they did not want the evil three American auto manufacturers to flood the market with their cheap cars.
A lot of those foreign made cars were filling a niche market when they exported their products and with government subsidization you can say they were able to offer those cars sometimes at a cheaper rates.
I always thought that the Canadian and American governments had anti-dumping laws but they turned a blind eye because of their lucrative trade agreements they had with those countries.
The big three American auto giants did a good job until now but when the credit dried up because of government meddling the car companies are suffering.
Once the credit opens up then it’s business as usual.
Most of the foreign car companies have three or four models in their line of products and each American car company has a lot more than that so they should.
According to Mitt Romney a republican American president hopeful on Meet The Press said that labour accounts for only three percent of the car costs, which means other people are making money.
And if the labour reduction wages demands are met will this mean a cheaper car or will it mean a big payday for the shareowners and stakeholders.
How ironic that American President Obama who campaigned for more good paying jobs is ready to sacrifice jobs.
The messiah that was here to save the world and he is turning out to be another false profit.
General Motors in America was given until June 1 to solve their problems or they will be forced in a bankruptcy by the American government and now Fiat is prepared to walk away from the Chrysler deal if the Canadian and American unions don’t lower their wages to at least twenty dollars an hour.
The American auto manufacturers have to be competitive with the overseas car companies.
When you look at it the government of the foreign car companies have always subsidized their national car companies because they did not want the evil three American auto manufacturers to flood the market with their cheap cars.
A lot of those foreign made cars were filling a niche market when they exported their products and with government subsidization you can say they were able to offer those cars sometimes at a cheaper rates.
I always thought that the Canadian and American governments had anti-dumping laws but they turned a blind eye because of their lucrative trade agreements they had with those countries.
The big three American auto giants did a good job until now but when the credit dried up because of government meddling the car companies are suffering.
Once the credit opens up then it’s business as usual.
Most of the foreign car companies have three or four models in their line of products and each American car company has a lot more than that so they should.
According to Mitt Romney a republican American president hopeful on Meet The Press said that labour accounts for only three percent of the car costs, which means other people are making money.
And if the labour reduction wages demands are met will this mean a cheaper car or will it mean a big payday for the shareowners and stakeholders.
How ironic that American President Obama who campaigned for more good paying jobs is ready to sacrifice jobs.
The messiah that was here to save the world and he is turning out to be another false profit.
