Volkswagen’s Tennessee plant sets new standard for low wages
09-30-11, 10:50 PM
#46
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I've never been to China, but right around this time last year I went to my home country, Belarus, which was once a part of the USSR, and people on average make an equivalent of $300-$600 per month over there. And these modest earning go WAY further than $2000 a month go in the US, especially when you couple that with the fact that they pay virtually no taxes, have free medical, free college education, very low costs on utilities, etc. IT professional make in the neighborhood of $2000 per month over there, and really live like "ballers". If it wasn't for my daughter, who was born here, I'd go back there in a heartbeat. With my skills and connections I could make even more than $2k per month and live like a king.
Not to mention that every other girl there looks like a supermodel
Not to mention that every other girl there looks like a supermodel
10-01-11, 09:55 PM
#47
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You pay peanuts, you get monkeys. I would NEVER own a car coming out of that factory, and not just because it looks like a forgettable POS either. I can't wait to see the initial quality studies for these cars and how they hold up over time. I am not saying they should be paid the same as a brain surgeon, but $12 is is barely enough to survive on for a family.
Henry Ford had it right.
Henry Ford had it right.
The $5-a-day Workday
After the success of the moving assembly line, Henry Ford had another transformative idea: in January 1914, he startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage.
While Henry's primary objective was to reduce worker attrition—labor turnover from monotonous assembly line work was high—newspapers from all over the world reported the story as an extraordinary gesture of goodwill.
Thousands of Workers Flock to Detroit
After Ford’s announcement, thousands of prospective workers showed up at the Ford Motor Company employment office. People surged toward Detroit from the American South and the nations of Europe. As expected, employee turnover diminished. And, by creating an eight-hour day, Ford could run three shifts instead of two, increasing productivity.
Henry Ford had reasoned that since it was now possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 day helped better the lot of all American workers and contributed to the emergence of the American middle class. In the process, Henry Ford had changed manufacturing forever
After the success of the moving assembly line, Henry Ford had another transformative idea: in January 1914, he startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage.
While Henry's primary objective was to reduce worker attrition—labor turnover from monotonous assembly line work was high—newspapers from all over the world reported the story as an extraordinary gesture of goodwill.
Thousands of Workers Flock to Detroit
After Ford’s announcement, thousands of prospective workers showed up at the Ford Motor Company employment office. People surged toward Detroit from the American South and the nations of Europe. As expected, employee turnover diminished. And, by creating an eight-hour day, Ford could run three shifts instead of two, increasing productivity.
Henry Ford had reasoned that since it was now possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 day helped better the lot of all American workers and contributed to the emergence of the American middle class. In the process, Henry Ford had changed manufacturing forever
10-04-11, 12:11 AM
#49
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Hottest place for real estate outside of Spain. Warsaw, Krakow, and Gdansk are now boom cities.
10-04-11, 06:37 AM
#50
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You pay peanuts, you get monkeys. I would NEVER own a car coming out of that factory, and not just because it looks like a forgettable POS either. I can't wait to see the initial quality studies for these cars and how they hold up over time. I am not saying they should be paid the same as a brain surgeon, but $12 is is barely enough to survive on for a family.
Henry Ford had it right.
Henry Ford had it right.
Then this huge point is missed. Its not like VW moved production to TN and they saved money on labor so they are selling a car with top of the line features, engines, technology etc. This new Passat is worse than the old Passat and pretty much worst in class. So why the move here? They didn't do it to offer a class leading car to save money, they did it to simply save money since the car is pretty much on par with a 1988 Camry.
Contrarily and to Kia/Hyundai's credit, they are building cars in AL/GA and the vehicles are arguably best in class and offer new engines, tech, features. So its clear that building it here is letting them pass off savings to customers.
I'm getting tired of people saying "oh we moved labor to save money and we can't compete" when the savings is not passed on to consumers, rather it just increases profits.
I honestly don't know how anyone can have any pride building the new Passat when it isn't competitive at all. If GM or Toyota or Ford sold this car it would be the laughingstock of the internet.
10-04-11, 07:54 AM
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That's how I feel about the Jetta. It sells mostly because of it's "German" pedigree, but it's built in Mexico.
I really don't know why VW chose to make the new Jetta and Pasaat more plain and of lesser quality. If it's to cater to Americans as they say, is that what they think of us???
I really don't know why VW chose to make the new Jetta and Pasaat more plain and of lesser quality. If it's to cater to Americans as they say, is that what they think of us???
10-04-11, 08:55 AM
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That's how I feel about the Jetta. It sells mostly because of it's "German" pedigree, but it's built in Mexico.
I really don't know why VW chose to make the new Jetta and Pasaat more plain and of lesser quality. If it's to cater to Americans as they say, is that what they think of us???
I really don't know why VW chose to make the new Jetta and Pasaat more plain and of lesser quality. If it's to cater to Americans as they say, is that what they think of us???
10-04-11, 09:00 AM
#53
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The new Passat, fo course, even in the low-line version, has a substantially nicer interior than the new Jetta....VW obviously designed it for a different, and more-upscale, class of buyer. Like many new and/or redesigned cars today, however, the new Passat has noticeably thinner sheet metal/doors.
10-04-11, 08:10 PM
#54
LMFAO. If there's one politician that Putin is afraid of, that would be Lukashenko. The Russian propaganda machine even went as far as making a propaganda movie about him "The Godfather" and showing it on Russian TV. Lukashenko does not act in the interests of Russia at all, he protects the interests of his country from Russia as much as it is possible for him.
Open your eye's. We your neighbors to the west know the challenges or weening of the Russian teet. But once you do, youll thrive. Look we avoided the recession and now the west comes to us not we to it.
Hottest place for real estate outside of Spain. Warsaw, Krakow, and Gdansk are now boom cities.
Hottest place for real estate outside of Spain. Warsaw, Krakow, and Gdansk are now boom cities.
I have plenty of Polish friends, and they all say life in Poland these days is miserable. That real estate boom that you are talking of just means that average folks can't afford housing and live under the same roof for several generations.
On the contrary, life style for average folks in Belarus is very good. Lukashenko managed to preserve all the positives of USSR without any of the negatives. The pay to cost of living ratio is very reasonable, theres no unemployment, medicine is free, higher education is free, daycare is free, people get paid sick leave, paid maternity leave, early retirement, virtually free utilities, etc.
10-04-11, 08:27 PM
#55
Lexus Champion
A lot of buyers simply want low cost and don't care much about a nice interior or chassis/drivetrain-sophistication. To them, a car is simply a daily-commuting machine and little else. The new Jetta, of course, appeals to them.
The new Passat, fo course, even in the low-line version, has a substantially nicer interior than the new Jetta....VW obviously designed it for a different, and more-upscale, class of buyer. Like many new and/or redesigned cars today, however, the new Passat has noticeably thinner sheet metal/doors.
The new Passat, fo course, even in the low-line version, has a substantially nicer interior than the new Jetta....VW obviously designed it for a different, and more-upscale, class of buyer. Like many new and/or redesigned cars today, however, the new Passat has noticeably thinner sheet metal/doors.
It is easier to make larger cars cheaper, so it is easier to bring down the price of the Passat; VW does not even have to build it in low-cost Mexico (but building it in the Southern States is still cheaper than building it in California, the Northern States or Canada). Time will tell how well it sells, but I believe that it will sell just as well as the Jetta -- or even better. Americans like mid-size cars better than compact cars, so a new, cheaper-price North American-only GERMAN Passat that does not look as cheap as the North American Jetta should sell very well.
It is the nameplate that is selling. Volkswagen is PERCEIVED to be better than Hyundai, Kia, Chevrolet or Ford.
10-04-11, 10:30 PM
#56
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Great post and exactly what I said about Mr. Ford.
Then this huge point is missed. Its not like VW moved production to TN and they saved money on labor so they are selling a car with top of the line features, engines, technology etc. This new Passat is worse than the old Passat and pretty much worst in class. So why the move here? They didn't do it to offer a class leading car to save money, they did it to simply save money since the car is pretty much on par with a 1988 Camry.
Contrarily and to Kia/Hyundai's credit, they are building cars in AL/GA and the vehicles are arguably best in class and offer new engines, tech, features. So its clear that building it here is letting them pass off savings to customers.
I'm getting tired of people saying "oh we moved labor to save money and we can't compete" when the savings is not passed on to consumers, rather it just increases profits.
I honestly don't know how anyone can have any pride building the new Passat when it isn't competitive at all. If GM or Toyota or Ford sold this car it would be the laughingstock of the internet.
Then this huge point is missed. Its not like VW moved production to TN and they saved money on labor so they are selling a car with top of the line features, engines, technology etc. This new Passat is worse than the old Passat and pretty much worst in class. So why the move here? They didn't do it to offer a class leading car to save money, they did it to simply save money since the car is pretty much on par with a 1988 Camry.
Contrarily and to Kia/Hyundai's credit, they are building cars in AL/GA and the vehicles are arguably best in class and offer new engines, tech, features. So its clear that building it here is letting them pass off savings to customers.
I'm getting tired of people saying "oh we moved labor to save money and we can't compete" when the savings is not passed on to consumers, rather it just increases profits.
I honestly don't know how anyone can have any pride building the new Passat when it isn't competitive at all. If GM or Toyota or Ford sold this car it would be the laughingstock of the internet.
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