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#1 | Posted by tonyroma at 2023-09-13 11:12 PM
... it was mentioned how many small towns here in Indiana - like Kokomo itself - have been devastated by Big 3 plant closings, taking thousands of good-paying, middle class jobs away forever.
So the unions are making sure that more plants will close and stay closed? See history of "Lordstown Motors" for just one reference.
There are not even "American" Big 3 anymore - Stellantis (which owns Chrysler brand, along with Fiat and Peugot/PSA Group brands) is a mostly European company, based in Netherlands. Stellantis is 4th in North America marker, barely ahead of Hyundai/Kia and is expected to slip below that next year. Jeep and Chrysler models consistently rate at the bottom of manufacturing quality ratings and have the longest inventory lot sales time.
Many Big 3 lines like Oldsmobile, Plymouth, TransAm etc. are just memories after "streamlining" of manufacturing platforms.
Toyota revenues alone are almost 80% of GM and Ford combined.
Union membership in the auto manufacturing industry has shrunk from nearly 60% in 1983 to under 16% in 2022. Nonunion competitors with U.S. locations include foreign companies such as Toyota, Honda, BMW and Volkswagen. In 1970 GM alone employed more than 400,000 workers. In 2001, the Big Three combined employed 408,000. Today, a total of 146,000 people work for those companies - 57K at Ford, 46K at GM, 43K at Stellantis. Big 3 U.S. market share declined to about 40% from more than 90% in the 1960s.
The USA was known for "Detroit" and "Hollywood" - the "middlemen" unions are killing both.
Ford should be easiest to 'kill' (or at least move out of "Detroit") - they have the most debt and lowest profit margins (less than half of GM's) and losing $Billions on their EV lines, and institutions own only slightly more than half the shares.
UAW retirees health benefits trust fund used to own 17.5% of GM and 55% of Chrysler, after 2009 bailout, but sold most of them years ago.
Defined Benefit Pension plans have been a post-WWII incentive to attract workers, but are going away in private industries for simple reason that it's basically a Ponzi scheme which is unsustainable for companies long term, especially in a shrinking industries, and are being replaced with Profit Share Distributions and Defined Contributions plans like 401(k) which are usually invested in the market.
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