An Ordinary Recession This is Not

[Jeepers]

with cars and/or parts being manufactured in Mexico at a cheaper labor rate why aren't the lower costs being reflected in the msrp? take a look at the car lots throughout the country and the thousands of dollars that vehicles are being reduced in price. initially overpriced vehicles??? or how about the GM commercial where their employees state that "we" can now receive the same discounts that they get. Mighty nice of them. Through my many years in manufacturing every time they had a cost reduction program it was always at my expense. If I wanted their business I had to reduce the price of my product. They even came into the plant to show me where I could cut back (lucky me). They never did ask if I had any suggestions for their operation. Go ahead and give them the money, then nod your head when they go on strike. The worm has turned.

 

[Jefferson3000]

I don't think they ever did it to lower the price of cars. Two reasons that do come to mind are:

1. UAW
2. Higher profits for them.

As long as the automotive market does not require them to offer a less expensive car to be competitive, I guarantee that there will not be one.

 

[ATeam]

Hey Phil. Good topic. It was nice to finally meet you in VA. Sorry it was only for two minutes at the fuel island. Maybe next time.

Back at you, Jefferson3000. Thank you for understanding our schedule and need to keep rolling.

 

[ATeam]

While the automotive companies and UAW are not winning much praise in this thread, other unions may be getting the message.

From MarketWatch.com, 11/28/08:

"Facing the worst economy since the 1930s, the Teamsters Union and the freight companies of YRC Worldwide Inc. (YRCW) have reached an agreement to provide the company with economic relief that will protect the jobs and retirement security of tens of thousands of Teamsters."

YRCW, a large LTL carrier, is in deep financial trouble. Details will be announced Wednesday about the deal but it seems the Teamsters are showing some interest in helping to keep the boat afloat.

See: Teamsters, YRC Worldwide Reach Agreement on Economic Relief

and

YRC and Teamsters want to change labor agreement to help out the company

 

[Moot]

(YRCW) have reached an agreement to provide the company with economic relief that will protect the jobs and retirement security of tens of thousands of Teamsters."

Sounds mighty generous of the Brotherhood to provide "economic relief" to save tens of thousands of jobs. Truth is; what choice did they have? When Yellow and Roadway are completely integrated 200 terminals will have been shuttered, power and trailing equipment will be sold off and thousands of Teamsters out of work.

Historically, at least since deregulation, when a union LTL company asked for a give back a high percentage were out of business within the next 3 years or the next contract. Which ever came first.

Yellow and the Teamsters agreed to a new Master Freight contract in January of this year. That gives them a little more than 4 years of marital bliss. The Teamsters can't afford to drag YRCW, the single largest LTL union employer left standing into the tar pits. But they probably will, with the help of Yellow management. I don't think Yellow will be around to negotiate a new contract in 2013. Even Con-Way is cutting back and closing some terminals.

Maybe when the government is done bailing out the automotive industry, followed by the boat industry they can save the trucking industry. Let's not forget the swimming pool industry, department stores, airlines, vegetarian poodle clipping, athletic shoe industry and the telegraph industry. Oh and the van segment of the expedite industry.