European automakers vs US automakers.."pigs & oranges"

[SoCalDem]

http://www.chinapost.com.tw/business/detail.asp?GRP=E&id=77292

European automakers report stronger profits

China Post, Taiwan - 17 hours ago



2006/2/20
FRANKFURT, AP

European automakers are reporting stronger profits and keeping their aspirations focused on flashier models and new markets, even as U.S. car companies are slashing benefits and jobs amid sagging results and spiraling gas prices.



Europeans have been used to high gas prices for years due to stiff taxes, and the use of more-efficient diesel models is widespread. "The Europeans are already well-structured with diesel and smaller vehicles, whereas the Big Three had to quickly be forced to spend a little more attention on the passenger car market," said Michael Robinet, vice president of global vehicles forecasts with CSM Worldwide consultants.



"Our earnings are not where we want them to be," he said. "We need to get to work."
Despite his stern assessment, European car makers have seen good results, with profits up at Volkswagen AG and Renault and analysts predicting BMW will have another strong year.
In contrast, GM lost US$8.6 billion (euro7.2 billion) in 2005 amid high health, pension, labor and materials costs. Ford's annual profit fell 42 percent to US$2 billion (euro1.7 billion). Most European automakers are operating from a position of strength.
They also don't have the same legacy expenses, such as pension or health care costs, said Adam Jonas, a European auto analyst for Morgan Stanley in London.
"Most of the Europeans are growing, at least in global terms," he said, but felt trying to compare U.S. and European automakers was looking at "pigs and oranges."

[physioex]

1. To bad....

Mercedes had to buy that turd Chrysler or they might be on the list as well....

[NewJeffCT]

2. well, gee it is like comparing pigs & oranges

the government pays for health care in Germany (BMW, Mercedes, VW) and Sweden (Volvo) and elsewhere. In the US, it is the employee & the employer that pay for it. That gives the European companies a huge head start in terms of the bottom line.

The biggest pro business move either party could make would be to implement universal health care.

[SoCalDem]

3. Exactly.. Can you imagine how secure you would feel

if you knew you just had to go to work, do your job, and not have to worry about having raised gobbled up by higher health care premiums?

or to be able to actually change jobs if you wanted to move?

or to be able to just go to the doctor if you were sick, without having your boss know (or have access to) what was ailing you?

Bosses could get competitive too, if they could offer higher actual wages and could attract more qualified people..and could pay them what would KEEP them there..

everyone wins.

[Jayhawk Lib]

5. It seems to me

that if you were depending on the government for health care you would be paying the same amount or more in increased taxes instead of insurance premiums. The workers will be paying the biggest part of the health care tax.

That is the way it appears to me and if you differ that is fine.

[SoCalDem]

7. If their taxes go to things they tangibly benefit from it's worth it

Our taxes go for wars, military toys, and corrput politicians.. I prefer their system:)

[NewJeffCT]

8. yes, there would be a tax increase - but -

But, by having universal health care, we cut down on the huge overhead of pushing paper, which adds 25-30% to our health care costs, far more than Japan, Canada or Western Europe. So, while there would be a tax increase, it is more than offset by the lack of insurance premiums. Additionally, if employers are no longer paying $500/month per employee, that money goes to raises for employees, capital improvements, strengthening the pension plan or 401K, etc.

We spend 2x to 2.5x what those other nations spend on health care. We have many of the best medical schools and hospitals in the world. Yet, our results suck compared to what we spend - overall, #37, infant mortality rate in the 40s, shorter life expectencies, less access to primary doctors.

[Jayhawk Lib]

9. You have much more faith in our government than I do.

One example is the new Medicare Prescription Plan.

[NewJeffCT]

10. that was mostly Bush

tens of billions in guaranteed profits for pharmaceuticals

biilions for the health insurance companies

medicare was barred from negotiating prices.

[Jayhawk Lib]

11. I repeat.... I do not trust the government with my health care..

I can see far more people getting hurt than helped. Even with Democrats taking back the Presidency, house and senate, there will still be Republicans to deal with. Shortage of medical workers, doctors, and facilities will cause massive gouging. There will be many charlatans bilking the system and the paperwork and red tape involved with government bureaucracy will drive a lot of legitimate medical personnel out.

[NewJeffCT]

12. and how is that different than now?

instead of dealing with the federal government, you deal with health insurance companies, pharmaceutical reps, state governments, etc.

[acmejack]

4. Why is it that all three of the US automakers have thriving European

businesses? All three have models which sell very well there, Ford has the world's best selling car.

[SoCalDem]

6. They only have to pay wages to employees

Employees don;t have to unionize because they HAVE healthcare. pensions and unemployment payments provided by their COUNTRY.. Being a citizen of ....... has benefits built in.. They are not just indentured servants scrambling to keep a roof over their heads

[acmejack]

13. Undestood

But they also build competive models. Cars which get 45 to 60 miles a gallon!