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Author: Real_News
Date Posted: 2009-01-11
Viewed: 17,670
Why US Auto makers went bankrupt and Not European Auto makers?
You want to know what is so wrong with US economy, you want to see WHAT utter complete Lunatics Republicans are and have been, and how Democrats have not been that much better, then all you need to do is ask yourself:
WHY is it that ONLY US Auto makers went bankrupt while the European Auto makers such as Benz, BMW, VW, etc. did not? That is sales of Autos were down for most Auto makers, but only US Auto makers went bankrupt, why is that? OTN, market valuation of Germany's VW alone is MANY TIMES greater than that of GM, F & C combined!

But before you answer the above question, keep these FACTS in mind:

  1. The net actual salary of German Auto workers are substantially higher than that of US Auto workers (aka UAW). To be exact: take out the health care costs out of UAW workers pay checks, since in Germany they pay $0.00 for health care costs since they have Universal Health Care and you will see that UAW workers are paid substantially LESS than comparable German or French Auto workers net take home salary.
  2. German Auto workers have much more benefits that US Auto workers, considering the FACT that in Germany by law employees are entitled to 8 weeks paid vacation per year while in US no such law exists and thus employees are lucky to get 2 weeks paid vacation per year.
  3. Plus many other benefits that German (Auto) workers have which US (Auto) workers dont, such as in Germany they get free day care, unemployment benefits which are substantially higher and last substantially longer. etc. etc..

And also keep in mind these FACTS:

1- While US Auto makers have been laying off US Auto workers by 10s of 1000s as if they are Cockroaches, in Germany German Auto makers have not had ONE lay off, repeat not EVEN ONE lay off, with Government subsidies, because that would be bad for the Social fabric of the country which ultimately will mean the German car makers and businesses as a whole.

2- German population is less than 1/3 of US and Germany hardly has any natural resources compared to US.

So why are the US Auto makers went bankrupt while the European Auto makers did not?

Answers are:

1- Europeans have Universal Nationalized Health Care and many other Socialized services
This means European Auto makers, well the whole people & nation, pay ZERO for health care expenses on top of their Taxes because health care is totally paid for from the Taxes that they pay, whereas US Auto makers and People have to pay 100s of Billions of Dollars per year for health care costs on top of the Taxes that we pay. And get this: for someone making $36K to $100K per year, Taxes are the same or slightly less in most European countries than in US. AND as the Ultimate "Adding insult to injury", Health care takes 8% of GDP in Europe while it takes 16% of GDP and rising in US. And Republicans are such lunatics to call Germany "Socialist.." and Universal Health Care "Socialism" and our Media is so right-wing to generally repeat the same Republican loonie line. To be exact consider that for example GM has 10s of Billions of Dollars of health care payment obligations to current and retired UAW workers, which the lunatic Republicans and right-wing Media sites as the reason GM is going bankrupt, while VW of Germany has ZERO Dollar of such payment obligations because they have Universal (National) Health Care in Germany, again what the lunatic Republicans call "Socialism..".
So because German Auto makers have been saving 10s of Billions of Dollars per year in health care costs, because they have Universal Health Care in Germany, they could invest these savings in making better cars or building their cash reserves for a "rainy time", etc.

2- Europeans do not waste their money (their People's Taxes) on a Gargantuan Military budget while US does
Consider this fact: US Military budget is larger than Military budget of every nation on earth combined
while US market now is at best 15% of world economy. The result of this incredible Military budget are many negative things for the US economy, one of which is the best and brightest of our engineers are working on Military matters, to make weapons to kill people, while best and brightest of European engineers are working for their Auto industry or for other industries that make things that people buy. After all who makes the best Fighter planes, best Tanks, best Submarines, best Helicopters, etc.? US or Germany? US does. Why? Because our best and brightest engineers and too much of our resources are going to make Weapons to Kill rather than Cars and other products people buy. Or consider this amazing fact: US has 350,000 troops positioned in Europe, pumping in excess of 50Bill American Tax payers money into Europe, while Europe is much richer than US AND Europe has NO enemies that it cannot easily defends itself from easily.

3- US products are boycotted by most of the World due to US & Israeli war-mongering
That is most of the World considers the US War in Iraq, Israeli war in Lebanon, Gaza, etc. and US support of these Wars to be criminal and wrong at best, and as a result they will NOT buy US made products, such as Autos, Planes, etc., IF competing products are available which are at least as good. I mean think for yourself, IF you are one
of the Billion Arabs/Moslems, whom we send to $800Bill of our money per year in form of Oil purchases, would you buy a US made Car, Plane, etc. given how wrong you find the US War in Iraq to be and Israeli War & killings in Gaza to be or would you buy a German made car or a French made plane, etc. when they are both pretty much priced the same and deliver the same if not better quality, etc.?

Now why these issues are so very important and worth repeating OVER and OVER until they are addressed? Because the above reasons for WHY US Auto makers are doing so badly as a result of which they went bankrupt, etc. etc. apply to (almost) all of US manufacturers, to all of US businesses, as a result of which US economy is doing so badly compared to European economy as evident by average house prices in Europe being so much more valuable than average house prices in US, as evident by Euro being so much more valuable than US Dollar, etc. etc.

So you see unless we make immediate and fundamental changes to US economy, which means also US policies, US economy will continue to fail one part after another, as evident by US Auto makers teetering on the edge of failure and all other bad news coming out of US economy. These fundamental changes as should be obvious from the reasons given above for why US Auto makers are going bankrupt means finally realizing that the policies of the Republicans and right-wingers in US are that of a Lunatic at best and that we need to invest much more of our money (Taxes) in our people and cities and much less of it in unnecessary Wars and a Gargantuan Military.

Also you want to see how right-wing US Media is, consider the FACT that it does not ask the above MOST OBVIOUS question, for if it did then it would have to give the answers which would prove how lunatic Republicans are and how right-wing US Media is and how little difference there is, or at least has been to date, between Democrats and Republicans, because the right-wing lunatic policies that have lead to the near collapse of US Auto makers were, at least to date, were fostered under both Reps & Dems.

In closing, just consider that Republicans and our right-wing Media (aka Agents of Big corporations & wealthy), railed against UAW getting paid too much as the reason for US Auto makers going bankrupt, when avg UAW gets $60K per year in net pay (after health care costs) and on Mar/29th Wagoner the x-CEO of GM was so called fired AND given a $23Mill severance pay and the Republicans had NO problem with that.
So get this according to Republicans and our right-wing Media: $60K per year for UAW workers is too much and why US Auto makers are doing so badly WHILE $23Mill for Wagoner is fine.

P.S., As the ultimate proof of what lunatics, what Hoaxes, Republicans and their ideas are watch that they will NOT be able to answer the above question.
That is they will not be able to answer "WHY is it that ONLY the US Auto makers (aka Big 3) went bankrupt while the European Auto makers such as Benz, BMW, VW, etc. are doing quite fine? " and keeping in mind that German Auto workers are paid far more than UAW and they have far more benefits than UAW and German Auto companies have had ZERO lay off while US Auto makers have laid off 10s of 1000s of workers.
But instead of answering this question, which if they tried to do will just prove what lunatics Republicans are and how right-wing US Media is, what they will do,
out of desperation, is throw a few insults at me or a few rants. Watch.

For details of Steps we need to take to set the US economy right check out:

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COMMENTS     Posted: 23    Pending: 1

By Guest:   james davis 2011-07-28

"Mar/29th Wagoner the x-CEO of GM was so called fired AND given a $23Mill severance pay and the Republicans had NO problem with that."

This was not part of a severance, it was his pension that he paid into. As part of the government take over he was not allowed any severance. Also, the $23mill will be paid over the rest of his lifetime. I'd like you to find a Republican that thinks he deserves this money.

I will leave you with some insight on how irrelevant this article is for blaming healthcare for the downfall of GM. It was outrageous deals management made like this pension deal that put GM in financial trouble and will continue for generations.

By Member: Real_News 2011-07-29

You freaking moron, that is you 1st proven yourself to be a tyipical Republican lunatics by being against NHS, which again ALL Conservative parties, set aside Liberal parties, in developed World 100% support.

2nd, you freaking moron, you state:
"was outrageous deals management made like this pension deal that put GM in financial trouble "

The pernsion deal that US Auto makers get is paltry, is a small fraction, of what European, Japanese, or Korean Auto makers got and get, and as you know European, Japanese, or Korean Auto makers did NOT go bankrupt. To be exact a KEY part of the so called "pension deal.." that GM Union workers got that was so expensive for GM was the health care coverage, which again for you Republican LUNATICS; European, Japanese, or Korean Auto makers, etc. pay almost ZERO for since in these countries you pay your Medicare Taxes, as we pay here, and then after that the Government run NHS takes care off the health care payment of the retires and NOT the company.

So that is the WHOLE point you Republican lunatics, that is because in European, Japanese, or Korea, et. they have NHS, the Auto makers in these countries did NOT have the huge pension obligations of GM, etc.

By Guest:   2011-07-17

I think the better question would be: Why did GM and Chrysler fail and not Ford. Did you forget that we have a strong vehicle manufacture in the US that did not need a bailout from you and me? Did you know that they also provide healthcare for their workers? Its a company i mentioned earlier, called Ford Motor company. This little fact renders this entire article as irrelevant.
Did you know that GM had the largest sales in the US during their crisis that caused them to go bankrupt? The reason they went bankrupt is they are a poorly managed company. Thousands of companies managed to go though the hard economic downturn with out a government bailout, while providing healthcare and continue to today. It's called managing your company.
My prediction: Gm will go bankrupt and need complete restructuring in another 5 years. This is due to managements inability to forecast the market. Example: sitting on a current stockpile of trucks, and failure to bring a hatchback into the US.

By Guest:   ultimate_fighter 2011-07-21

If 75% of US Airlines crash and NONE of the European airlines, Japanese airlines, Korean airlines, etc. crashes yĆ³ur suggestionn would be that:
"rather than ask why 75% of US Airlines crashed the right question is why did not 25% of US US Airlines crash?"

So as the Republican lunatics such as many US Seantors like Graham, McConnel, etc. said: "The problem with GM is that it spends more on employee health care than on Steel...", which is true but DOH that is the case becasue Republican lunatics have prevented Socialized health care as they have in Europe, Japan, Korea, etc. as a result of which US Auto makers are spending 10s of Billions of Dollars on health care on top of the Medicare Taxes that they pay whereas European, Japanese, etc. Auto makers pay their Taxes and NO more on health care.

Also, Ford CEO himself said that if GM and C had gone bankrupt that would have likely lead to Ford bankruptcy too since they share so many same auto part makers.

By Member: JPR2011 2011-07-14

First of all Germans Do have a national health plan but also a private plan, you have a choice depending on your income. Second germans do not get health care free, they pay monthly premiums just as they do in the USA. Third yes they have a more effecient healthcare system, it is called a non profit, that goes for Hospitals and all of the medical professions. Doctors do make a good living, but unlike USA Doctors in Germany the education is free except for a slight charge and books. Germans do not get automatically 8 weeks vacation, it all depends on your age, young people get four weeks the first year when they work for a company. Germans do get paid more the the Americans, they save more mony in their bank accounts, but they also pay for things that are free in the USA like radio and TV tax. But as a whole Germans are better educated, live better and get better pay for their work along with a great Health care system, vacation and much better food and Beer. Americans support Corp

By Member: ThinkDeep 2011-07-14

Yes, that is true that Germany has private health insurance as do many countries that have Universal Nationalized Heath Care (NHS), but these private health insurance companies are tightly regulated by Government laws and regulation as to what they can charge and what they can pay their Execs.

2nd, the article does not say that Germans get "get health care free"! What it says, what the FACTS are, is that they pay ZERO for health care expenses on top of their Taxes. So they get health care for FREE for the Taxes that they pay, if you are employed. That is EVERYONE in Germany who works by Law has access to health care whereas in US 10s of Millions of people who DO work have no health care because their company does not offer health insurance because they cannot afford it or because they want to save such payments. And on top of this by Law here you pay next to nothing for Deducibles and co-pays which can cost 10s of 1000s of Dollars in US for a family per year.

3rd, Now if you are unemployed in Germany then yes you do get health care for FREE, for you and your family until you get a Job, but again for Taxes that you have paid and will pay all your live.

Finally another point that you made, which I have made in other places, are another example of what is so wrong with US and that is why US economy is doing so badly compared to Germany, etc. European country, that is in Germany they have Universal Nationalized Education too, which means which meas you can go up to your PhD pretty much for FREE. Contrast this to US where getting a BS degree can cost you an astonishingly INSANE amount of $100,000 AND MORE, putting your or your family in debt for years to come, EVEN if you get a good Job, and GOD help you if you dont get a good Job.

By Member: power2people 2010-01-02

Just think that according to the attached article the best "uber alles" car, which means the best of all cars for those that dont know German, comes from Germany which according to Republican lunatics is a "Socialist country" since Germany like ALL European countries has Universal Nationalized Health Care, Universal education and many other social services. Proving yet again what a lunatics Republicans have been and are for having opposed such a essential thing for American businesses to be able to compete Globally as Universal Nationalized Health Care since again all European countries such as Germany have Universal Nationalized Health Care as a result of which ALL Europeans get health care for free or near free, well free for the Taxes that they pay, while health care is taking about 9% of GDP in typical European country while in US 50Mill have NO health care, 2Mill+ are going bankrupt each year due to health care costs and health care is taking about 18% of GDP.

And lets also state the fact that how right-wing, which means owned by Big Phrama, Big insurance, etc. Democrats/Obama are too since they have NOT proposed a Universal Nationalized Health Care system as they have in Germany, France, UK, Israel, etc. and instead they have proposed the health care reform that does not Nationalize health care which is the KEY to cutting health care costs to 9% of GDP, which means saving American Government, which means Tax payer, $1.2Trillion per year.

By Member: kathy_cali 2009-04-27

Very true what you have said.
Now, you know what is amazing, here you have the right-wing lunatics, aka Republicans or Talkradio or Fix TV etc., calling Europe "Socialist..", calling Germany "Socialism..", etc. rubbish and you look at almost everyone of these Republican congressman or Talkradio slime bags and you will see that they are driving either a Mercedes Benz, BMW, Porsche, etc. German Luxury car. Which is just one more proof of what a Hoax, what lunatics, Republicans and the right-wingers are, that on one hand they decry Germany/Europe being "Socialist" for having such social services as Universal Nationalized Health Care and many other Social services and on the other hand the 2nd biggest purchase they make after their houses is a German made car.

Amazingly, Not facing the fact that one of the reasons that German Auto makers are doing so well that they themselves buy German made cars the 1st chance they can get is because they have Universal Health Care and many other Social services in Germany and they have much more pro labor and pro Union laws, again what these lunatics call "Socialism..".

So in fact Germany or European countries are not "Socialist.." countries, but they operate a few key industries, such as Health care, Education, etc. on Socialized basis, as we operate the Military on Socialized basis, and that is why the other 80% of their Capitalist economies does much better than the US economy as EVIDENT by Euro being so much more valuable than US Dollar or German Auto makers doing fine while US Auto makers went bankrupt.

Now you might ask., if the above is true then why did not European economies kick the arsss of US economy up to few years ago? The answers are 2 things:
1- The European Union coming into formation 7 years ago which removed great inefficiencies from the European economies
2- Iraq War that showed to the World how right-wing and Undemocratic US actually is

By Member: Lux_Report 2009-12-02

So U need to ask yourself WHY is that GM went bankrupt while German Auto makers did not? Answer is that in Germany, like ALL European countries, they have Universal Single Payer health care so health care costs of German Auto makers for their current and retired employees is nearly ZERO while US Auto makers have to pay 10s of Billions of Dollars for health care of their current and retired employees. So German Auto makers could spend those 10s of Billions of Dollars in SAVINGS in R&D to build better cars. Now why do we not have Universal Single Payer health care while Germans, in fact ALL European do? Because of Republican lunatics who have called, and are still calling, Universal Single Payer health care to be "bad", to be "Government takeover of health care" as if that is bad since that is exactly how health care is operated in Germany, in ALL European countries, or it is how Military, Police, Fire, etc. are operated in this country.

By Member: power2people 2009-04-22

Very true.
Consider the FACT that Republicans call Germany "Socialism.." or the lunatics on Fix TV or on right-wing Talkradio state "do we want to end up like Europeans..." etc. non-sense and here you have Volkswagen alone that has a market capitalization greater than that of GM, Ford & C combined AND has had NO lay offs in Germany contrast to GM alone that has had 10s of 1000s of lay offs in US. So either "Socialism..", which is what the lunatic Republicans say Germany has, is better for countries economy and its businesses or countries like Germany in fact are not "Socialism.." but Hybrids of Socialism+Capitalism which means essential services like Health Care, Education & day dare are provided on Socialized basis as a result of which the other 90% of their Capitalist economies are doing much better than US economy again as evident by Volkswagen alone that has a market capitalization greater than that of GM, Ford & C combined, or Euro being much more valuable than US Dollar, etc. etc.

By Member: accuallan 2009-04-06

I wish I could live in an alternate universe Like you do.......

By Member: power2people 2009-04-06

It is amazing how you Republicans (aka right-wingers) can never answer any points logically and instead resort to 1 line rants or your favorite word "Socialist.."

So go ahead and answer Sanctuary's question as to "WHY is it that ONLY the US Auto makers (aka Big 3) are teetering on edge of bankruptcy while the European Auto makers such as Benz, BMW, etc. are doing quite fine?"

You cant because if you try you will just prove Sanctuary's points, which is what lunatic Republicans are and how the rightwing (pro Wealthy and anti Middle class) policies of US gov, whether Reps or Dems, have and are destroying the US economy. And that US economy will continue to go down the toilet unless we adopt European style liberal and social policies. In case you still cannot face the FACTS, again answer this question you buffoon: "WHY is it that ONLY the US Auto makers (aka Big 3) are teetering on edge of bankruptcy while the European Auto makers such as Benz, BMW, etc. are doing quite fine?"
and GIVEN that German Auto workers are paid much more than UAW, given that they have much more pro-labor pro-union laws in Germany, given that you luni Republicans call Germany/Europe "Socialist".

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