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TM7

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De-industrializing the USA: 17 facts about the Auto Industry
« on: January 24, 2012, 09:06:19 AM »
.The US auto industry demonstrates de-industrialization model ...fyi...TM7
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                            Poor Richard's blog                              Tuesday, January 24, 2012   
 
17 Facts About The Decline Of The U.S. Auto Industry That Are Almost Too Crazy To Believe     
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Very few things illustrate how dramatically America has been deindustrialized than the stunning decline of the U.S. auto industry. Once upon a time, the United States literally taught the rest of the world how to make cars.  We were the ones that invented the assembly line.  We were the ones that showed the rest of the world what mass production could do for an economy.  For decades, we produced more cars than anyone else and we sold more cars than anyone else.  Detroit was known as "the Motor City" and our manufacturing prowess dominated the planet.  But now all of that has changed. Japan makes far more vehicles than we do today.  So does Germany.  As you read this, state of the art production facilities are going up all over China. Meanwhile, the U.S. auto industry continues to rot and thousands upon thousands of good automotive jobs continue to leave our shores.  The rest of the world is making cars better than we are, they are making them cheaper than we are and they really don't care that many of our formerly great manufacturing cities are turning into rotting, stinking hellholes.  The U.S. auto industry was once a symbol of American dominance, but now it is just a symbol of American decline.  If we want to remain a great nation, then we need to start becoming great at making things once again.
The following are 17 facts about the decline of the U.S. auto industry that are almost too crazy to believe....
#1 The average age of an automobile in the United States has gone up more than 50% since 1990 and is now sitting at an all-time record of 10.8 years.  The average length of a marriage in the United States that ends in divorce is only 8 years.
#2 Germany made 5.5 million cars in 2010.  The United States made less than half that (2.7 million).
#3 When you add up salary and benefits, the average auto worker in Germany makes $67.14 an hour.  In the United States, auto workers only make $33.77 an hour in salary and benefits.
#4 Back in 2000, about 17 million new automobiles were sold in the United States.  During 2011, less than 13 million new automobiles were sold in the United States.
#5 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe?  Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts with the rest of the world of $110 billion.
#6 Japan builds more cars than anyone else on the globe.  Japan now manufactures about 5 million more automobiles than the United States does.
#7 In 2010, South Korea exported approximately 12 times as many automobiles to us as we exported to them.
#8 According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to new tariffs.
#9 U.S. car companies are spending hundreds of millions of dollars building shiny new automobile factories in China.
#10 In 1970, General Motors had about a 60 percent share of the U.S. automobile market.  Today, that figure is down to about 20 percent.
#11 The combined U.S. market share of the "Big Three" American car companies fell from 70% in 1998 to 53% in 2008.
#12 Detroit was once known as the "Motor City", but in recent decades automobile production has been leaving Detroit at a staggering pace.  One analysis of census figures found that 48.5% of all men living in Detroit from age 20 to age 64 did not have a job during 2008.
#13 Today, only Chrysler still operates an automobile assembly line within Detroit city limits.
#14 Since Alan Mulally became CEO of Ford, the company has reduced its North American workforce by nearly half.
#15 Today, only about 40 percent of Ford's 178,000 workers are employed in North America, and a significant portion of those jobs are in Canada and Mexico.
#16 The average Mexican auto worker brings in less than a tenth of the total compensation that a U.S. auto worker makes.
#17 In the year 2000, the U.S. auto industry employed more than 1.3 million Americans.  Today, the U.S. auto industry employs about 698,000 people.
Sadly, it is not just the auto industry in America that is falling apart.  In fact, almost everywhere you look in our economy (and in our society as a whole) there is decay and decline.
For example, our infrastructure was once the envy of the entire globe.  Today, U.S. infrastructure is ranked 23rd.
Recently, I wrote an article entitled "24 Statistics To Show To Anyone Who Believes That America Has A Bright Economic Future".  In that article, I discussed many of the long-term trends that are systematically destroying this nation.
Just because we have had it so good for so long does not mean that it will always be that way.
As a nation, our wealth is declining.  A decade ago, the United States was ranked number one in average wealth per adult.  By 2010, the United States had fallen to seventh.
We lived off the wealth created by previous generations for a long time, but that was not enough for us.  We always wanted more.  Eventually we started going into massive amounts of debt so that we could keep this bubble of "false prosperity" going.
Today, when you add up all forms of debt in America, it comes to over 50 trillion dollars.
We are a great nation that is in an accelerating state of decline.
We have got to quit living off of the past accomplishments of previous generations.
We have got to quit being so lazy and decadent and spoiled.
There is absolutely no guarantee that America will always be a great nation.  In fact, when great nations fall, it usually happens very quickly.
I'm still proud to be an American, but the decay and the decline that I see all across this country sickens me.
And it should sicken you too.

Offline Cuts Crooked

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #1 on: January 24, 2012, 09:48:40 AM »
Simple solution: Tell our government to get it's nose out of private industry, shut down the EPA, cut taxes on corporations & small business, and generally reduce it's own size!

Addendum: Who is the single largest employer in the United States today?
Smokeless is only a passing fad!

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Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #2 on: January 24, 2012, 01:58:11 PM »
Simple solution: Tell our government to get it's nose out of private industry, shut down the EPA, cut taxes on corporations & small business, and generally reduce it's own size!

Addendum: Who is the single largest employer in the United States today?

I would say it is the one with the highest pay and yet produces nothing.
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Offline Cuts Crooked

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #3 on: January 24, 2012, 02:49:34 PM »

Addendum: Who is the single largest employer in the United States today?

I would say it is the one with the highest pay and yet produces nothing.


Bingo!!!!!!!!!

(Although I could argue the point regarding highest pay)
Smokeless is only a passing fad!

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Offline blind ear

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #4 on: January 24, 2012, 03:32:32 PM »

Addendum: Who is the single largest employer in the United States today?

I would say it is the one with the highest pay and yet produces nothing.


Bingo!!!!!!!!!

(Although I could argue the point regarding highest pay)

I suppose you guys are talking about the United States Government.
 
LOL  ear
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Offline Cuts Crooked

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #5 on: January 24, 2012, 03:41:44 PM »

Addendum: Who is the single largest employer in the United States today?

I would say it is the one with the highest pay and yet produces nothing.


Bingo!!!!!!!!!

(Although I could argue the point regarding highest pay)

 
I suppose you guys are talking about the United States Government.
 
LOL  ear


We have another BINGO!!!!!! ;D
Smokeless is only a passing fad!

"The liar who charms and disarms and wreaths himself in artifice is too agreeable to be called a demon. So we adopt the word "candidate"." Brooke McEldowney

"When a dog has bitten ten kids I have trouble believing he would make a good childs companion just because he now claims he is a good dog and doesn't bite. How's that for a "parable"?"....ME

Offline DakotaElkSlayer

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #6 on: January 24, 2012, 07:12:33 PM »
#3 When you add up salary and benefits, the average auto worker in Germany makes $67.14 an hour.  In the United States, auto workers only make $33.77 an hour in salary and benefits.

Gee, and for years I was told how our auto workers were so overpaid in this country and that is why production was moving overseas...  Would love to see a CEO pay comparison between the US and German auto industries.
 
Jim
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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #7 on: January 25, 2012, 02:52:25 AM »
"The whole problem with the world is that fools and fanatics are always so sure of themselves, and the wiser people so full of doubts." Bertrand Russell
"The speaking in perpetual hyperbole is comely in nothing but love" Francis Bacon, Sr.
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Offline tobster

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #8 on: January 25, 2012, 04:00:30 AM »
I find it hard to believe  U.S. auto workers only make $33..77 in wages and benefits. I know people that have retired from G.M. in their fifties and a couple older guys that have  been retired for more years than they actually worked. Maybe they include low paying companies that provide outsourced parts in the formula which would bring the average down.

Offline Dixie Dude

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #9 on: January 25, 2012, 04:13:45 AM »
Ross Perot was right, the giant sucking sound of the "free trade agreements" that were not FAIR trade agreements.  Lower manufacturers taxes and go back to regulations of say, the 1980's, then slap a tarriff on imported cars IF their government is subsidising them.  Remember, both parties are the blame.  Clinton was president, and Congress went along. 

Offline magooch

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #10 on: January 25, 2012, 04:44:43 AM »
So the Liar in Chief was full of crap when he said last night that GM was once again the preeminent auto manufacturer in the world.
Swingem

Offline powderman

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #11 on: January 25, 2012, 04:53:20 AM »
So the Liar in Chief was full of crap when he said last night that GM was once again the preeminent auto manufacturer in the world.

 
 
 
Of course he lied, it's his job. POWDERMAN.  >:( >:(
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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #12 on: January 25, 2012, 05:29:15 AM »
At the moment GM is the number one seller world wide. Why don't some of you look up the facts before automatically calling Obama a liar. Makes you all look kind of ignorant. ::)  I am guessing that we can call the Wall Street journal a reliable source for this information.
GuzziJohn



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Offline powderman

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #13 on: January 25, 2012, 06:24:14 AM »
HEH. Obama pushed to get billions in bailout for gm, then they invest it in China taking away even more jobs, now obama says he wants to create more jobs in America. Go figger. Just part of the plan to destroy us. In a war these plants would probably be converted to the war effor for China, compliments of obama with OUR tax $s. POWDERMAN.  :o :o
Mr. Charles Glenn “Charlie” Nelson, age 73, of Payneville, KY passed away Thursday, October 14, 2021 at his residence. RIP Charlie, we'll will all miss you. GB

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Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #14 on: January 25, 2012, 06:25:11 AM »
TM, that is upside down economics. Any tax is a tax on the economy. That reasoning is simple to understand. Taxes are potential capital taken away from the productive and given to the unproductive (government). Strengthen one and you weaken the other.


A tariff is a tax- the productive pay it.



Imagine, if predators killed the strongest out of the herd and left the weakest to survive. What would happen?


-----------------------------------------------------------------------------------------
Want to bring companies back and have full employment. Close down the government and the federal reserve and make America a free country again.


Capital always flees the less free country and moves to greater economic freedom. This is an economic law that cannot be repealed.
The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

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Offline Harry1

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #15 on: January 25, 2012, 06:55:31 AM »
I find it hard to believe  U.S. auto workers only make $33..77 in wages and benefits. I know people that have retired from G.M. in their fifties and a couple older guys that have  been retired for more years than they actually worked. Maybe they include low paying companies that provide outsourced parts in the formula which would bring the average down.
It is hard to belive:
    According to this Wall Street Journal article reprinted in the Star-Telegram, "on average, GM pays $81.18 an hour in wages and benefits to U.S. hourly workers, including pension and retiree medical costs."
But in his vituperative rant against the Big Three U.S. automakers, Boston Globe columnist Derrick Z. Jackson manages to ignore the huge labor cost advantage enjoyed by non-union Toyota.
How much of an advantage?  According to that same article, "Harbour Consulting President Ron Harbour estimates Toyota's total hourly U.S. labor costs, with benefits, at about $35 an hour." That's right, GM's average labor costs are 130% higher than that of the US operations of its Japanese rival.  That translates into a $1,000/vehicle average labor-cost advantage enjoyed by Toyota. Thank you, UAW!

Read more: http://newsbusters.org/node/7344#ixzz1kUfep3gn
Well bye then

Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #16 on: January 25, 2012, 07:07:16 AM »

Production always comes from investment of capital in machinery, better processes, labor, etc.

TM, the wealthy do not put their money under a mattress do they?
If they put it in a bank, it becomes  investment capital when it is loaned to business. If they put it in the stock market or mutual fund it is money available to companies for investment in production. More often they put their money into expanding their own company. And it is only fair that they should be rewarded for letting other people use their money. After all, they are forgoing present consumption.


Now if the government takes wealth away by any kind of tax, then the wealth is extracted from the productive, as well as those that would use it for improvement, and winds up in the hands of the unproductive (government) who always squanders it.


There is a reason why the freest economies have always been the strongest economies.
The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline Cuts Crooked

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #17 on: January 25, 2012, 07:45:42 AM »
Bottom line: ANY tax is payed by the consumer in the end..........period!!!!!!!!!!!
Smokeless is only a passing fad!

"The liar who charms and disarms and wreaths himself in artifice is too agreeable to be called a demon. So we adopt the word "candidate"." Brooke McEldowney

"When a dog has bitten ten kids I have trouble believing he would make a good childs companion just because he now claims he is a good dog and doesn't bite. How's that for a "parable"?"....ME

Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #18 on: January 25, 2012, 08:56:59 AM »
Bottom line: ANY tax is payed by the consumer in the end..........period!!!!!!!!!!!
CC, not really. Rothbard addressed that. If producers had the luxury of increasing prices, they would have already done so. But, the consumer suffers in the reduced standard of living.
The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline NWBear

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #19 on: January 25, 2012, 09:25:27 AM »

Addendum: Who is the single largest employer in the United States today?

I would say it is the one with the highest pay and yet produces nothing.


Bingo!!!!!!!!!

(Although I could argue the point regarding highest pay)


I thought you were talking about the Wall Street Gang ...  :P

Offline NWBear

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #20 on: January 25, 2012, 09:27:28 AM »

...
There is a reason why the freest economies have always been the strongest economies.


Like China !!!!!!

Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #21 on: January 25, 2012, 10:19:34 AM »

...
There is a reason why the freest economies have always been the strongest economies.


Like China !!!!!!
It is true that China has a freer economy than the US, but their Central Bank intervened just like our's does and the boom they created from their policy of low interest rates and easy money will at some point lead to a bust. They may be getting close now. This will be a clear example of the Austrian Business Cycle. During the artificially created boom there is malinvestment such as empty office buildings and empty trains. Adam Smith's invisible hand will take care of that. That is why it is called a correction. The market corrects stupid interventionist mistakes.
The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

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“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline SHOOTALL

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #22 on: January 25, 2012, 10:28:05 AM »
In 1972 I started in plumbing and there were 18 foundries that made cast iron pipe and fittings . Now its three I believe and plumbing foundries for drains and man hole covers are few now. Its not just autos .
If ya can see it ya can hit it !

Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #23 on: January 25, 2012, 11:53:36 AM »
TM, I agree with much of what you said and I too despise those who have made their wealth by renting the government for their own purposes, such as the big bankers and Warren Buffett. The answer is a small Constitutional government that do not have any privileges to give away. During our greater productive years, that is the way it was. For that kind of government you would not need much tax. Taxes were the necessary ingredient that fed the Leviathan (bloated government). Government will always try to grow in size and power. As it does the people must decline in liberty and in living standards. It is because they do not have any feed of their own, because they produce nothing, and so they eat most of our feed, starving us.


The increase of any tax just gives Leviathan more feed to grow fat. To attempt to correct the tangled web would only leave other loopholes. We already have a system of interventions to repair the unintended consequences of previous interventions, which creates the need for more interventions and then still more until it all crashes down. This is a top down government and it can't work because those at the top can't possibly know all the decisions that need to be made by entrepreneurs. Hayek called it pretense of knowledge. They pretend to know.

The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline Cuts Crooked

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #24 on: January 25, 2012, 02:48:27 PM »
Bottom line: ANY tax is payed by the consumer in the end..........period!!!!!!!!!!!
CC, not really. Rothbard addressed that. If producers had the luxury of increasing prices, they would have already done so. But, the consumer suffers in the reduced standard of living.

Oh yes they do pay it....in one way or another!!! Perhaps through lower paying jobs, perhaps through jobs leaving for overseas,.....or through higher cost at the market place...but rest assured, they do pay it! Anyone who beleaves otherwise is wearing some pretty good sized blinders.
Smokeless is only a passing fad!

"The liar who charms and disarms and wreaths himself in artifice is too agreeable to be called a demon. So we adopt the word "candidate"." Brooke McEldowney

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Offline Gary G

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #25 on: January 25, 2012, 04:20:56 PM »
Bottom line: ANY tax is payed by the consumer in the end..........period!!!!!!!!!!!
CC, not really. Rothbard addressed that. If producers had the luxury of increasing prices, they would have already done so. But, the consumer suffers in the reduced standard of living.

Oh yes they do pay it....in one way or another!!! Perhaps through lower paying jobs, perhaps through jobs leaving for overseas,.....or through higher cost at the market place...but rest assured, they do pay it! Anyone who beleaves otherwise is wearing some pretty good sized blinders.

Didn't I mention lower living standards, which covers all that you said and more? I think we are on the same page. But my point is that the company suffers too......and some leave the country.



The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline DakotaElkSlayer

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Re: De-industrializing the USA: 17 facts about the Auto Industry
« Reply #26 on: January 25, 2012, 04:43:36 PM »
Ross Perot was right, the giant sucking sound of the "free trade agreements" that were not FAIR trade agreements.  Lower manufacturers taxes and go back to regulations of say, the 1980's, then slap a tarriff on imported cars IF their government is subsidising them.  Remember, both parties are the blame.  Clinton was president, and Congress went along.
AMEN!  Hopefully, people will begin to realize that BOTH parties are filled with people that are just looking out for themselves, and not the country.
 
Jim
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