Letter to the Editor 1, 11-14

Dear Editor, In response to the editorial published on Wednesday about the ‘Big Three’… Dear Editor, In response to the editorial published on Wednesday about the ‘Big Three’ automakers not deserving assistance from the federal bailout monies to get out of the financial mess that plagues our economy, I agree with The Pitt News that a bailout is a ridiculous notion for the ailing companies. Not only do they not deserve such funding, but also at this rate, with Bernanke and Paulson no longer disclosing where our tax dollars are going, I don’t think any company deserves to have our money without accountability. But I’m not writing this letter for that. What I’d like to mention is that the opinion of this piece is terribly ignorant when it comes to the American car companies. The editorial said, ‘U.S. auto companies simply aren’t competitive on the world stage anymore, to the point where foreign-made cars outsell American cars everywhere in the world, including in the United States.’ This isn’t completely true. While the three major U.S. companies don’t hold more than half of the industry’s share at 47 percent of the American market in October, according to statistics from Automotive News, I would hardly call them uncompetitive. Ford, as well as GM’s Australian Holden division, also draws huge profits in Europe and Australia, and China and India aren’t too far behind. So why are these companies struggling? It might have something to do with the approximately $65 per hour per United Auto Worker commanded by employees to cover wages, benefits and pensions, according to a 2005 article written by Henry Payne of The Detroit News. That doesn’t compare too favorably to the $14.81 per hour Honda pays for labor without the associated legacy costs. The Big Three may look like a sad puppy with their collective tail in between their legs, trying to gain support of the federal government. It isn’t all their fault that a union has a stranglehold on their profits. Don’t paint the American automotive industry to be the bad guys. Jacob Brown School of Arts and Sciences/Business