Weekly Editorial - December 4, 2008
1. a) How many companies belong to the other American auto industry?
b) Name those mentioned in the article.
2. a) How many Americans do the Big Three carmakers employ?
b) How many do the foreign-owned carmakers in the U.S. employ?
3. How will the foreign carmakers in the U.S. be affected if the Big Three go under?
4. List the factors contributing to the foreign carmakers success in the U.S. even as the Big Three fail. (para. 5-10)
5. a) What are the hourly take-home wages for U.S. and foreign carmakers' employees?
b) What are the hourly wages for each including benefits?
c) Ask a parent or teacher what is typically included in an employees' benefits.
6. Legacy costs (referred to in para. 7) refer to company obligations to pay heath care costs and pensions for current employees and retirees. Legacy costs are widely credited with handicapping American auto manufacturers and older airlines worldwide, diminishing their competitiveness. Organized labor (unions) sees such criticism as part of a desire to abandon any form of social contract between worker and employer.
How did foreign carmakers operating in the U.S. avoid legacy burdens?
7. What do you think of this comparison between the Big Three and America's "Other Auto Industry?"