2013년 12월 31일 화요일

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A               travesty               of               economic               justice               has               been               laid               upon               General               Motors               and               the               American               car               companies               in               general.

So               last               Wednesday               I               was               listening               to               my               boy               Rush               as               usual               when               he               was               discussing               the               auto               bailout               fiasco.

In               the               discussion               Rush               played               some               soundbites               from               two               Republican               Senators,               Jim               DiMent               of               South               Carolina               and               Senator               Tom               Coburn               of               Oklahoma.

One               of               Senator               Coburn's               soundbites               really               hit               home               with               me.

Without               quoting               him,               chew               on               this               info               for               a               minute.

Did               you               know               that               in               2007               both               Toyota               and               GM               sold               the               same               number               of               vehicles               worldwide?

Both               automakers               each               sold               9.37               million               vehicles               worldwide.

That               is               an               amazing               coincidence               on               the               one               hand,               but               here's               the               juicy               part.

Toyota,               in               selling               the               9.37               million               vehicles               in               2007               made               a               profit               of               $17.7               billion               dollars.

General               Motors,               in               their               selling               of               9.37               million               vehicles               in               2007               LOST               $38.7               billion               dollars!

Absolutely               amazing.
               So               Toyota               sells               the               exact               same               number               of               vehicles               as               does               GM               and               they               make               $17.7               billion               dollars,               while               the               same               effort               on               the               part               of               GM               results               in               a               loss               of               $38.7               billion               dollars.

What               to               make               of               this               turn               of               events?
               Gee,               are               those               inscrutable               little               Asians               outsmarting               we               good               old               Americans?

Prolly.

But               then               Toyota               has               at               least               two               huge               advantages               on               their               side.

Toyota               is               not               saddled               with               the               legacy               costs               of               their               retired               workforce               and               they               do               not               have               to               pay               the               outrageous               current               union-worker               salaries.

And               therein               lies               the               root               of               the               difference               and               the               root               of               the               problem.
               So               if               you're               a               union               member,               get               ready               to               get               pissed               off               at               me               because               I               think               your               organization               is               as               useless               as               tits               on               a               hog.

Now,               I               will               freely               admit               the               truth               as               to               history,               economy               and               the               worker               -               that               unions               DID               have               a               valuable               place               in               the               American               worker's               landscape.

But               those               days               are               past.
               Unions               have               their               roots               in               the               crowded               cities               and               urban               areas               of               the               Northeast               and               the               current               near-Midwest               Rust               Belt.

This               region               of               the               nation               that               was               heavily               industrialized               at               the               turn               of               the               last               century.
               In               the               early               industrialized               United               States               the               business               owner               had               an               unfair               advantage               over               the               worker.

He               had               the               job               on               which               they               and               their               urban               families               were               so               dependent.

The               bossman               could               demand               six               14               hour               days               per               week               from               the               worker.

If               the               worker               complained               the               bossman               fired               him               and               hired               some               other               poor               sap               in               desperate               need               of               employment.

The               company               held               all               the               cards,               and               the               worker               was               at               some               level               of               disadvantage.
               Unions               addressed               this               inequity.

They               provided               the               "collective               bargaining"               so               vital               for               the               workers               to               improve               their               plight               at               the               hands               of               the               company.

One               man               against               the               big               bossman               had               no               chance               at               all,               so               the               workers               "collected"               their               power               in               one               entity               -               their               union               -               hence               the               "collective               bargaining"               power               of               unions               today.
               Flash               forward               to               the               growth               of               the               Federal               government               of               the               late               20th               Century.

Government               put               in               all               kinds               of               worker               protections               into               laws               and               regulations               that               did               not               exist               at               the               time               union's               usefulness               and               popularity               manifest               themselves               as               an               attractive               bargaining               tool               for               the               workers.

Once               the               Federal               government               came               up               with               OSHA               and               various               and               myriad               Federal               wage               compensation               rules,               the               unions               were               rendered               useless.

Only               problem               is               no               one               told               the               unions               or               their               members               that               they               were               no               longer               needed.
               And               the               unions               and               their               members               know               a               good               thing               when               they               see               it,               so               they               are               holding               on               for               all               they're               worth,               and               they               are               killing               the               American               car               manufacturers.
               Unions               have               destroyed               numerous               American               industries.

The               south               and               Midwest               used               to               have               tons               of               textile               jobs,               clothing               makers,               etc,               but               not               so               much               anymore.

The               American               textile               industry               was               destroyed               by               the               cost               of               doing               business               with               unions,               especially               when               competition               from               foreign               nations               came               into               play.

We               hear               a               lot               about               "out-sourcing"               jobs.

Where               do               you               think               the               "out-sourcing"               comes               from?

Workers               in               foreign               countries               work               for               much               less               than               an               American               unionized               worker.

You               lefties               keep               preaching               how               great               "globalization"               is,               well               get               used               to               seeing               American               union               jobs               move               overseas.
               Where               do               you               think               the               Rust               Belt               got               its               name?

Its               name               derives               from               the               abandoned               machinery               and               factories               that               used               to               be               the               vibrant               economic               engine               of               this               formerly               robust               area.

The               steel               industry               was               decimated               by               foreign               steel               that               eventually               equaled               the               quality               of               American               steel,               but               at               a               much               lower               price.

The               unions               did               not               run               those               industries               in               foreign               lands               like               they               do               in               America,               hence               the               steel               could               be               made               and               shipped               to               the               US               still               cheaper               than               could               be               made               by               American               unionized               workers.

It's               a               sad               reality,               but               a               reality               nonetheless.
               And               as               the               American               steel               industry               went               so               went               the               factories               and               the               local               economies               of               the               Rust               Belt.

Unions               and               their               high               wages               and               constant               demands               drove               competition               from               non-union               shops               and               foreign               nations.

If,               for               the               sake               of               argument               it               cost               $1.00               to               make               1               pound               of               American               steel,               what               happens               when               another               enterprise               (foreign               nation               or               non-union               shop)               can               supply               the               same               quality               1               pound               of               steel               for               say               $.75               cents               per               pound?

Would               anyone               pay               1/3rd               more               because               the               steel               came               from               a               union               shop?

Hell               no,               not               if               they               had               any               sense               about               them.
               And               remember,               every               company               is               responsible               to               its               board               of               directors               and               its               shareholders.

No               one               can,               in               any               business               sense,               justify               paying               a               third               more               for               something               of               equal               quality               just               because               it               was               made               in               a               union               shop.

So               naturally               the               buyers               of               steel               went               to               the               cheaper               source               when               quality               was               equaled.

If               Japanese               steel               is               the               exact               same               quality               as               American               steel,               but               can               be               manufactured               and               then               shipped               to               the               US               and               still               sold               for               less               than               American               steel,               well               I               think               you               get               what               happens               to               the               American               steel               industry.

Don't               believe               me?

Go               to               the               Rust               Belt               and               look               at               the               blight.

Look               at               the               miles               of               urban               emptiness,               the               shells               and               foundations               of               factories               and               industries               lying               closed               because               they               were               driven               out               of               competition               by               non-union               industries.

The               proof               is               there               for               all               to               see.
               Wanna               see               Detroit               become               an               empty               shell?

Keep               on               with               the               unions               and               their               insane               demands               and               indeed               you               will               see               Detroit               go               the               way               of               Pittsburgh,               Cleveland               and               hundreds               of               other               Rust               Belt               communities.
               Now               returning               to               the               current               discussion               after               the               short               little               history               lesson,               does               the               reader               have               any               idea               of               the               numbers               involved               here?

I               recently               heard               the               following               recited               somewhere               (sorry               I               do               not               have               the               exact               quote               at               my               fingertips,               but               trust               me,               I               am               recounting               accurately               the               numbers               quoted):
               The               cost               of               a               worker               in               a               union               auto               manufacturing               facility               makes               an               average               of               $78.00               per               hour               with               benefits               included               in               that               number,               whereas               workers               in               the               southern               US               in               non-union               factories               that               build               BMW's,               Toyota's,               etc.,               have               an               average               hourly               compensation               of               $45-48               per               hour,               benefits               included               in               that               number               as               well!

That's               a               huge               chunk               of               change               there               folks!
               That's               why               so               many               businesses               move               south               -               NO               UNIONS               generally.

The               late               19th               and               early               20th               Centuries               need               for               union               protections               for               the               worker               no               longer               exists.

The               US               government               has               so               many               laws               to               protect               the               worker,               pay               him               fairly,               etc.,               that               unions               are               useless               nowadays,               at               least               from               the               worker's               viewpoint               UNLESS               the               worker               cares               more               about               the               dollars               in               his               pocket               today               versus               the               prospects               of               long               term               employment.
               That               means,               yeah,               the               union               will               get               you               more               money               today,               but               at               what               price               down               the               road?

Will               union               salary               and               benefit               packages               price               your               employment               out               of               existence?

Look               at               Detroit               and               you'll               get               your               answer.

Yeah,               the               union               will               get               you               a               higher               wage               today,               but               soon               the               very               same               union               that               CLAIMED               to               be               for               your               benefit               will               become               an               unwieldy               entity               whose               demands               will               cause               your               employer               to               eventually               relocate               somewhere               where               the               labor               is               cheaper.

Sorry,               but               that's               the               way               it               is.

You               may               not               like               it,               but               I'll               be               damned               if               you               can               deny               it's               the               reality!
               So,               still               think               unions               are               a               great               thing?

If               you're               a               lefty,               prolly               so.

But               if               you               can               put               aside               your               political               leanings               and               look               at               history               and               the               reality               of               the               numbers,               you               will               see               that               unions               will               enrich               you               for               a               short               time,               but               in               the               end               money               will               always               win               out.

Why               should               I               plunk               down               $30K               for               an               American               midsized               sedan               when               I               can               get               a               Toyota               Camry               for               $25K?

I               don't               know               about               you               but               5               grand               is               a               huge               chunk               of               change               to               me               and               damned               if               I               will               pay               5               grand               more               for               something               just               so               I               can               say               "I               drive               American,"               which               is               a               misnomer               anyway.
               Most               of               the               Toyota's               in               this               nation               are               made               here               anyway,               by               American               workers               who               work               for               a               company               based               in               Japan.

Big               deal!

Remember,               as               it               stands               now               unions               exist               only               to               further               their               own               existence.

Watch               as               GM,               Ford               &               Chrysler               move               south,               if               they               survive.

They               will               move               to               non-union               areas               and               employ               and               pay               people               a               great               wage,               just               not               $78.00               an               hour.
               So               either               the               unions               drop               the               greed               and               their               members               take               a               drastic               pay               &               benefit               cut               or               these               factories               and               the               economies               that               thrived               on               the               factory               workers               wages               will               become               ghost               towns               as               well.

Don't               believe               me,               do               ya?

Just               take               a               ride               through               western               PA               or               Ohio               and               then               get               back               to               me.

All               those               empty               buildings               and               closed               down               businesses               are               the               remnants               of               a               formerly               vibrant               economy               that               wasn't               smart               enough               to               NOT               sew               the               seeds               of               their               own               doom.

Greed               will               get               ya               every               time               -               no               doubt!






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