With Chevrolet Sonic, G.M. and U.A.W. Stand Automaking on Its Head

by darthfader 6 Replies latest social current

  • darthfader
    darthfader

    Interesting to see such cooperation between GM and the UAW. I wonder what the quality of these will be -- how long will they last? Will they really be competitive with cars made in Mexico etc?

    http://finance.yahoo.com/news/With-Chevrolet-Sonic-GM-and-nytimes-3082900830.html?x=0&.v=1

    The only subcompact car being built on American soil will soon roll out of an assembly plant here in suburban Detroit that is as unusual as the car itself.

    The production line has been squeezed into half the space of a traditional plant. Welding robots are concentrated in efficient clusters, instead of being spaced along the line, while many of the workers earn half the typical union wage. Even the first coat of rust-proofing has been reformulated so that it is one-hundredth as thick as — and thereby cheaper than — the coating on other cars.

    One of the oldest axioms in the auto industry is that no company can build a subcompact car in the United States and make money because they are priced too low. The Ford Fiesta is built in Mexico. The Honda Fit is made in several places, including China and Brazil. But with Americans — and Detroit — rediscovering small cars because of high gasoline prices, General Motors is intent on shattering that notion with its new Chevrolet Sonic. Not only does it give G.M. a new entry in the lowest tier of the market when it goes on sale this fall, the Sonic is expected to be a breakthrough in establishing a new level of cooperation between Detroit and the United Automobile Workers.

    The radically revamped factory here operates with fewer and cheaper workers, many of whom are paid $14 an hour rather than the full U.A.W. wage of $28 an hour....

  • james_woods
    james_woods

    Maybe it is not fair, but somehow this reminds me of the defunct Saturn brand...

  • Mad Sweeney
    Mad Sweeney

    I had two Saturns. Both good cars for the money.

    Will they really be competitive with cars made in Mexico etc?

    Volkswagens have been made in Mexico for a long time now.

  • james_woods
    james_woods
    I had two Saturns. Both good cars for the money.

    What I meant was: Good cars or not, the division failed and had to be closed.

    And I guess they were better cars than the Vega.

  • Mad Sweeney
    Mad Sweeney

    All of GM should have been closed, actually. But we bailed them out. I think each taxpaying family deserves a car as repayment.

  • james_woods
    james_woods
    All of GM should have been closed, actually. But we bailed them out. I think each taxpaying family deserves a car as repayment.

    Well, at least it saved the Corvette. But wait - every taxpaying family can afford a car - and can afford to pay more taxes. The non-taxpaing families are the ones who are entitled to a free car.

  • darthfader
    darthfader

    Im not sure how any manufacturing company can use American workers when there are workers just sourh of the border who can fill these jobs for $10 including all benefits. Its hard to see any alternatives when you look at the $30 per hour for entry level and $60 for full-wage labor. 1/3 to 1/6 the labor rates are just to hard to pass up.

    Now in time the standard of living in these other countries will raise, it's just what is going to happen to US Jobs and the middle class while we wait for the changes to come. Some say that a rising tide floats all boats - that is assuming that all boats are at the same sea level.

    I just don't see a workable solution to this problem..

    <boat-rower>

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