Tuesday, January 30, 2007

Unions Do Drive Up Car Costs

But so do tariffs and unfair taxation on American car companies. One way to even the playing field is to invoke tariffs equivalent to the exporting country. U.S. vehicles would look appealing in comparison. An 8% tariff on a $25,000 car is $2,000. That seems only fair, doesn't it, especially when you consider some countries like Vietnam have 80% tariffs on foreign vehicles (and that's "liberalized" from 90%).

John Hawkins cites how Unions drive up costs of cars and cut into profits.

Imagine the auto industry with an even economic playing field. They wouldn't be dying, they'd be thriving. It's also important to know that the upper-management teams at car companies are always top-heavy. I'm not sure these companies understand the notion of "nimble".

No comments: