Total Compensation Per Hour, 2007-2008 (includes wages and all benefits):
Big Three automakers — $73.08
Toyota — $48.00
All workers — $28.48
The UAW is unwilling to make any concessions to help the big three out. You can see that their workers make $40 more in wages and benefits than other American workers. The big three do not make money on small car sales. That is why they pushed the overpriced SUV's. Any plan to re-tool them to make small cars will fail because their cost structure is too high. It would be very unfair to take tax money from someone making $15 an hour and use it to bail out someone making $73 an hour in wages and benefits.
As an e-mailer said in a post at Michelle Malkin's blog earlier this morning:
"The Big 3 has a cancer that needs to be removed. It doesn’t take a rocket scientist to understand why they cannot compete profitability (sic). They have parity on supply costs, materials, and energy with Honda and Toyota. So why can’t they compete? It is clearly the cost of labor."
Read more here.
Looks like the current congress is too smart to waste our money on a big three bailout. I doubt the next one will be that bright.
UPDATE 1-U.S. automakers bailout outlook in doubt-senator