Skip to content

Comment on The American Car Industry Can't Go on Like This

Comments

We need to look for the structural reasons we can't make a cheaper car compared to China. I don't believe it's all "we pay people too much" either. Autoworkers aren't paid that much.

Historically UAW auto workers made very good money for the type of work they do, probably $100-150k/yr in today's dollars adjusted for inflation. It's changed since 2009ish after the bankruptcies, but the auto industry is still heavily unionized in the North, and the UAW exerts a lot of pressure even on the foreign (non-union) southern automakers by virtue of the threat of unionization, and so auto jobs are still heavily sought after as one of the best jobs you can get for a certain skill level.

It’s not the car assembly that’s the primary bottle neck; it’s the manufacturing of the thousands of parts that make up the car. It takes decades to spin up a supply chain like that (which used to exist in the US but hasn’t for a long time).

AboutSource Built by g1lg1l

Hackerly is an independent reader for Hacker News, built on the public HN API. Not affiliated with Y Combinator.