"johnboy" wrote in message news: snipped-for-privacy@news.supernews.com... | "Bill Berckman" wrote in message | news: snipped-for-privacy@g14g2000cwa.googlegroups.com... | > VW lost $1.29 bilion in North America last year | | VW lost everywhere. The North American losses are hard to separate from the | total company losses. VW Germany has a particular (some would say peculiar) | concern for their workers and are loathe to fire them, even when they have | factories in Germany full of workers who are sitting on their hands, making | busy work, doing anything but making automobiles. (The factories were built | for massive production levels that they no longer have to meet.) There is a | long-standing relationship between management and workers, a virtual union, | a German social situation that most US companies would never understand or | tolerate. US companies would fold entire divisions, fire thousands, and | cancel their retirements and pensions rather than endure the social promises | made decades ago, as VW Germany is doing now. | | I'd not be surprised to see that whole paradigm overturned very soon now | with VW's new president. | | What would you do if you lived in Germany?
Have you noticed how many car companies from Europe have moved or built factories here in the US? Nobody points out the insourcing, but the Europeans are doing it a lot. The social contract in the US says that I sell my skills to you for a good price, and you look for good employees without paying too much. Employers compete in the US for employees, and employees compete in the US for employers. When one changes their mind, they are free to go. No contract, but the way it is, and has worked fine for awhile. Old Europe is learning the hard way, while "New" Europe is itching to make some of that money and has those socialists running scared. I'm sitting back with a smile on my face waiting for the Croats and neighbors to come out with a fine automobile at rock bottom prices, just like VW did when they started out, too. You compete on price and quality, and Europe isn't able to compete on price, and frankly, the quality is starting to slip a lot as well.