Cars, Cars, Cars

It will be interesting to see what plans for the future the Big 3 automakers report to Congress. While US automakers are not doing well financially domestically, some of their foreign plants are very profitable.

Many factors are involved in making a profit making cars. Perhaps most important is cars that people are excited about earning. Too much emphasis has been placed on the disadvantage US automakers face in overcoming the wage, pension and health care needs of US workers. It is estimated that these costs add an additional $1,500 - $2,000 to the price of a car. On the other hand, many people are happy to pay more for foreign cars because they are high-quality and include useful features.

We should not seek to cut costs at the expense of workers. US workers should reasonably expect to earn more than Asian and south-of-the-border workers; they've earned (on the whole) their position and live in a country with a high standard of living.

Nevertheless, we can learn a few lessons from what's going on at Ford's Camacari auto plant.