Comments on: American Axle Losing Interest In The “American” Part http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/ The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 22 Nov 2009 05:55:25 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: guyincognito http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-440231 guyincognito Wed, 21 May 2008 12:36:22 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-440231 @ golden2husky, "I think the bigger picture is being missed here. If the company made components for an automaker whose product was in strong demand, the component maker could afford to offer a decent wage." This isn't really true. Vehicle manufacturers can charge anything the market will bare for a vehicle, however parts manufacturers only get to charge material cost + labor/overhead + small profit (unless they have some patented technology that is in high demand). In most cases the automakers design the parts or at least have a singificant hand in designing them, therefore nearly any vendor can be chosen. Since material costs are fixed those vendors with the lowest labor and overhead costs will always be favored regardless of how much or little the automaker is raking in on their end. And the difference in labor/overhead for a typical UAW plant vs say a Mexican plant for hundreds of thousands of parts is huge. @ golden2husky,

“I think the bigger picture is being missed here. If the company made components for an automaker whose product was in strong demand, the component maker could afford to offer a decent wage.”

This isn’t really true. Vehicle manufacturers can charge anything the market will bare for a vehicle, however parts manufacturers only get to charge material cost + labor/overhead + small profit (unless they have some patented technology that is in high demand). In most cases the automakers design the parts or at least have a singificant hand in designing them, therefore nearly any vendor can be chosen. Since material costs are fixed those vendors with the lowest labor and overhead costs will always be favored regardless of how much or little the automaker is raking in on their end. And the difference in labor/overhead for a typical UAW plant vs say a Mexican plant for hundreds of thousands of parts is huge.

]]> By: golden2husky http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-439362 golden2husky Wed, 21 May 2008 00:24:05 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-439362 I think the bigger picture is being missed here. If the company made components for an automaker whose product was in strong demand, the component maker could afford to offer a decent wage. What the union "demanded" and what management could afford to give would not be that far apart. Now, with product demand in the crapper, and the union in a weakened state, the stage has been set for a demoralized workforce that will probably cause quality to suffer, which it turn will accelerate the outsourcing. Everybody ends up suffering, except for the very upper crust of management. As usual. I think the bigger picture is being missed here. If the company made components for an automaker whose product was in strong demand, the component maker could afford to offer a decent wage. What the union “demanded” and what management could afford to give would not be that far apart. Now, with product demand in the crapper, and the union in a weakened state, the stage has been set for a demoralized workforce that will probably cause quality to suffer, which it turn will accelerate the outsourcing. Everybody ends up suffering, except for the very upper crust of management. As usual.

]]> By: Geotpf http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-439331 Geotpf Wed, 21 May 2008 00:01:48 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-439331 At some point, the weak dollar will stop the outsourcing. Exactly when that point will be is the question. At some point, the weak dollar will stop the outsourcing. Exactly when that point will be is the question.

]]> By: taxman100 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-439312 taxman100 Tue, 20 May 2008 23:53:27 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-439312 In the next few years, replace American Axle with the name of your employer. All of Corporate America is looking for ways to move work overseas. In the next few years, replace American Axle with the name of your employer.

All of Corporate America is looking for ways to move work overseas.

]]> By: NickR http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-439272 NickR Tue, 20 May 2008 23:43:31 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-439272 I hope they at least have the decency to change their name. Busbodger and Seabrjim...I agree with your comment and your amendment respectively. We'll beggar ourselves to our own demise. I hope they at least have the decency to change their name. Busbodger and Seabrjim…I agree with your comment and your amendment respectively. We’ll beggar ourselves to our own demise.

]]> By: seabrjim http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-438932 seabrjim Tue, 20 May 2008 21:30:31 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-438932 I wish we had a decade or two. I'm thinking 2012...forget the comparisons to our forefathers, our children will spit on our graves. America may be a paragraph or 2 in a history book. I wish we had a decade or two. I’m thinking 2012…forget the comparisons to our forefathers, our children will spit on our graves. America may be a paragraph or 2 in a history book.

]]> By: N85523 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-438381 N85523 Tue, 20 May 2008 18:39:46 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-438381 It used to be that manufacturers didn't ever consider outsourcing production. These days, the UAW are shooting themselves and our manufacturing sector in the feet by strangling the automakers into outsourcing, though this is just one of many factors... It used to be that manufacturers didn’t ever consider outsourcing production. These days, the UAW are shooting themselves and our manufacturing sector in the feet by strangling the automakers into outsourcing, though this is just one of many factors…

]]> By: joeaverage http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/comment-page-1/#comment-438372 joeaverage Tue, 20 May 2008 18:38:53 +0000 http://www.thetruthaboutcars.com/american-axle-losing-interest-in-the-american-part/#comment-438372 Domestic auto makers screwing up and the suppliers are moving out. I guess in a decade or two we'll wake up one morning and ask where did the American auto industry go? Then we'll go get into our imported Chinese vehicle purchased through Wal-mart and drive to work for a foreign owned company. Domestic auto makers screwing up and the suppliers are moving out. I guess in a decade or two we’ll wake up one morning and ask where did the American auto industry go? Then we’ll go get into our imported Chinese vehicle purchased through Wal-mart and drive to work for a foreign owned company.

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