Hoovey689

iTrader: (16)

How Germany builds 2x as many cars as U.S. while paying 2x the salaries

First, let's put some salient numbers on the table: 5.5 million versus 2.7 million and $67.14 per hour versus $33.77 per hour.

The first set of numbers belong to Germany, and represent the total number of vehicles built in 2010 and the average wage of an autoworker in that country. The second set of numbers are the equivalent figures from the United States. In other words, twice as many vehicles are built in Germany every year than in the U.S., and German autoworkers make double what their American counterparts earn.

Interestingly enough, all three major German automakers – the BMW, Daimler and Volkswagen groups – operate facilities in both their home market of Germany and in the U.S. And, just as intriguingly, the factory workers in the southern states of America who work for German automakers aren't paid wages that even come close to matching those of their German counterparts.

Why the disparity? According to an article from Remappingdebate.org, it has to do with an ongoing "race to the bottom" when it comes to wages in the U.S. and a mutually beneficial working relationship between German automakers and IG Metall, the German equivalent to the United Auto Workers union in the States. In short, German automakers are paying Americans less because they can.

There's an entire three-page article with commentary from industry insiders and other experts on the matter, and we suggest you read it for all the details on the great wage disparity that makes the U.S. a low-cost country for German automakers operating outside their home borders.

http://www.autoblog.com/2011/12/27/h...ying-2x-the-s/

memasterac

After I've seen "this video" I was totally amazed by the way Germany building vehicles.

JessePS

I bet the big 3 would be like, if we did this we could only build half of what we do and would have to charge more.

caddyowner

IMO, the source of that article, Remapping Debate, appears to be an organization that promotes a Socialist agenda and contends that the mainstream media has become anti-union and anti-worker. (Hey, bashing the mainstream media worked for the right, so why not the far left, too.)

A couple of problems with the numbers:

- The production counts include cars only. It omits light truck production of 213.5K in Germany (including GM Belgium) and 4.9M in the US. (OICA 2010 production statistics)

- The US wage of $33 per hours compares to a GM quote from around 2006 of $39 per hour average rate including base pay, COLA, overtime, holiday, vacations, and night-shift premiums. However, it omits an additional $33 per hour in healthcare, pension, and other benefits. (Indianapolis Star, 2007) I don't know what the German v. US personal income tax rate is or who pays for healthcare benefits in Germany.

Och

iTrader: (3)

It also omits that German government has historically subsidized its automakers, while US automakers until recent were paying heavy taxes.

rogers2

Germans are paying US workers a lower salary. Not a surpise to me.
Especially down south, fyi you can find holes in almost everything that is written if your looking for something to add to the story.

PhilipMSPT

iTrader: (5)

Let's not twist ideas here.

Certain places pay certain wages.

Look, we don't complain that we pay Asian Indian computer techs less than a dollar an hour when they service your computer needs/questions over the phone. We don't complain that Filipina nurses get paid $6 an hour in the Philippines instead of $50 an hour in the U.S. Hell, you can get a surrogate mother to carry your child in South America for about $3k, whereas an American would get paid $50k + health benefits.

Why complain what Americans are paid versus Germans? Apples and oranges...

LexFather

I'm I also thinking they seem to be bunching entire orgs together whereas they might omit work that is outsourced?

The article has its points and should be taken as an additional source, not the only source.

DustinV

Regarding the salaries, the German worker needs to get paid more because the cost of living is substantially higher in Germany. Everything is more expensive here, and thus, people need to be paid more in order to be able to survive.

If an American and German worker each get paid $ 60 an hour in the US and Germany respectively, the American worker can buy more with $ 60 in America than the German worker can in Germany with the same $ 60.

Once external factors like typical European taxes and prices are factored in, the disparity between the wages of both workers isn't that big.

LexFather

Damn that was quick

Jetfire

iTrader: (3)

That video was pretty cool. Would like to visit if I'm ever in that city.

Mr. Burns

They built that factory for the VW Phaeton, a car not exactly known for its stellar quality.

<VENOM>

When the Phaeton was available in the US the quality was high, and it still is one of the best built VW and hardest to find on the used market, whats wrong with it in your eyes or are you just an internet negative nancy

4TehNguyen

iTrader: (1)

in the 1950s, we had the highest salaries in the world yet our products had the lowest prices. That's because we had capital and less regulations to enable high efficiency and productivity

LexFather

There is no denying the Phaeton was built off the Bentley platform, it debuted some world firsts and is superbly put together. Quality was awful and its hard to find on the used market b/c there are none to find. They sold way to poorly. You can get a W-12 Phaton for 30 grand.

Irony is Ironic