Friday, February 29, 2008

Unions cost America jobs


Ford has a new car out the Kuga. It's a Diesel Crossover that's expected to get around 35 MPG. That would go a long way to making SUVs and crossovers more fuel efficient in the US. However, the car is being built for Europe only. Because the Euro is so much stronger than the dollar Ford can't afford to make the vehicle in Europe and sell it in America. You would think then that the car could be made in America and sold for a profit in Europe, however, due to the unions stranglehold on US car manufacturers, the production costs of the car in America are so much higher, that they can't make it here and make money on it in Europe either.

The weakness in the dollar right now should help the US by allowing it a better opportunity to manufacture goods in the US and ship them to Europe, however the Unions in the US have pushed too hard and are now preventing companies from bringing jobs to the US.

I find it humerous how Japanese car companies can build plants in the US and build and sell cars for a large profit without union workers, while US car companies are forced to build cars overseas to try and offset the costs of doing business with the union employees that they have.