February 18, 2010

Are the Feds Chasing Toyota Out?

Is the US Government trying to chase Toyota out of the country because they are not unionized?  And since the US Government is part owner of GM, isn't it a conflict of interest for Congress to browbeat and bad-mouth Toyota?

In fact, the differences in efficiency and productivity (and why the unions are determined to penetrate Toyota's workforce), do not stop there. When GM fired over 35,000 employees between 2006 and 2008, Toyota laid off zero. GM loses almost $2,500 in profitability per vehicle where Toyota makes almost $1,500 per vehicle. This is largely due to GM's forced union contracts. GM's union, the United Auto Workers (UAW) mandates that GM pay, on average, each non-skilled line worker about $33 dollars per hour. This inflated wage includes workers who are "idle," meaning they don't have a specific job that day, but can still come to work, sit in a special facility and collect a pay check.

These artificially inflated costs, bound by forced union contracts, are sinking other US auto industries. Toyota has managed to rise above that, not by being anti-union, but by believing in and enforcing a corporate-wide model based on efficiency and improvement.

Now, the agents of the government, which controls GM, are publicly castigating Toyota in an attempt to smear the company and increase their own profitability. As a direct competitor with Toyota by way of involvement with GM, the assault against Toyota represents one of the most public conflicts of interests the business world has experienced.

Interesting... read the whole thing if you have the time.