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      12-23-2011, 11:33 AM   #1
M3Bahn
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How Germany Builds Twice as Many Cars as U.S. While Paying Its Workers Twice as Much

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In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. At the same time, the average auto worker in Germany made $67.14 per hour in salary in benefits; the average one in the U.S. made $33.77 per hour. Yet Germany’s big three car companies—BMW, Daimler (Mercedes-Benz), and Volkswagen—are very profitable.

How can that be? The question is explored in a new article from Remapping Debate, a public policy e-journal. Its author, Kevin C. Brown, writes that “the salient difference is that, in Germany, the automakers operate within an environment that precludes a race to the bottom; in the U.S., they operate within an environment that encourages such a race.”

There are “two overlapping sets of institutions” in Germany that guarantee high wages and good working conditions for autoworkers. The first is IG Metall, the country’s equivalent of the United Automobile Workers. Virtually all Germany’s car workers are members, and though they have the right to strike, they “hardly use it, because there is an elaborate system of conflict resolution that regularly is used to come to some sort of compromise that is acceptable to all parties,” according to Horst Mund, an IG Metall executive. The second institution is the German constitution, which allows for “works councils” in every factory, where management and employees work together on matters like shop floor conditions and work life. Mund says this guarantees cooperation, “where you don’t always wear your management pin or your union pin.”

http://www.forbes.com/sites/frederic...twice-as-much/

A tale of two systems
http://www.remappingdebate.org/article/tale-two-systems
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Last edited by M3Bahn; 12-23-2011 at 12:43 PM.
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      12-23-2011, 12:31 PM   #2
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Interesting. Whatever the Germans are doing they're doing it right!
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      12-25-2011, 06:40 AM   #3
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In 2010, 7,806,394 automobiles were produced in the United States of America.
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      12-25-2011, 09:53 AM   #4
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I think an interesting stat would be to see how many cars are built per union worker per year in both the US and Germany
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      12-25-2011, 12:04 PM   #5
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??? Ya but how much is Gas there?? How much is a loaf of bread...?? Milk? The cost of living? MY 135i is ridiculously unreliable... The only thing that I will agree with is the fact that Germany have kept their stuff together when it comes to the debt crisis in Europe.
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      12-25-2011, 10:12 PM   #6
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The interesting part of statistics is that peceptions can be used. Yes, during that same year the US produced 2.7 million cars and Germany produced 5.5 million cars. During the same period the US produced 5 million light trucks (mostly traditional pick-ups). While Germany produced 0.35 million in the same category.

In other words, the US produced 7.7 Million units to Germany 5.9 Million units.

The US purchases more trucks than cars. That said, the unions control too much.
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      12-26-2011, 12:28 AM   #7
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Quote:
Originally Posted by scalbert View Post
The interesting part of statistics is that peceptions can be used. Yes, during that same year the US produced 2.7 million cars and Germany produced 5.5 million cars. During the same period the US produced 5 million light trucks (mostly traditional pick-ups). While Germany produced 0.35 million in the same category.

In other words, the US produced 7.7 Million units to Germany 5.9 Million units.

The US purchases more trucks than cars. That said, the unions control too much.
You're comparing a nation of over 300 million that once had some of the largest automotive manufacturers in the world to one that has 80 million and sells laughable units in the US comparable to Japanese manufacturers and its own.

With that said; the US automotive industry has been a joke and will be for years. This includes durability, build quality, reliability, poor management and backwards mentality for years. Little to nothing has changed even after this crisis.

First they sold dispensable cars that only lasted 3 years, then people bought Japanese because they noticed they fell apart. Then they sold far too large engines... then they sold far too many trucks and suv's... then they made 10 identical cars under different badges... now they think the Volt will save the industry. Then there were Union issues that are appalling. It's a joke and that's all there is to say.
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      12-26-2011, 09:16 AM   #8
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Quote:
Originally Posted by Questforpower View Post
You're comparing a nation of over 300 million that once had some of the largest automotive manufacturers in the world to one that has 80 million and sells laughable units in the US comparable to Japanese manufacturers and its own.

With that said; the US automotive industry has been a joke and will be for years. This includes durability, build quality, reliability, poor management and backwards mentality for years. Little to nothing has changed even after this crisis.
Actually, I was not the one making a comparison. I was pointing out that the comparison was not taling into account all criteria.

I would say that the UAW has aided in making the US automotive industry a joke. But with Ford coming out as the least of them.
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