Wall Street Journal Article - regarding UAW Strike.

[Cubfan1]

Great article from the Wall Street Editorial Board , this morning :

https://www.wsj.com/articles/united...vehicles-big-three-68a673a8?mod=hp_opin_pos_1

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[TheOne]

92% of the CEO’s compensation is performance based incentives! If they don’t achieve certain goals, they don’t get the money!

And its the union worker who make the goals so the Ford CEO can take home 22million dollars

 

[turbopilot]

Zero sum game for the UAW. Want more money to do the same job? Then more automation will seem practical for the manufacturers. The enemy for UAW hourly workers is the automation that will replace them if they demand too much. How much the CEO makes is irrelevant. BTW, in publicly traded companies the majority of CEO pay is tied to stock performance, not specifically company performance at any point in time. In reality the equity markets determine how much the top management makes not the company board of directors after stock options are granted. This system works, but the finer points do not fit well on a picket sign.

 

[JJSnell]

Great article from the Wall Street Editorial Board , this morning :

https://www.wsj.com/articles/united...vehicles-big-three-68a673a8?mod=hp_opin_pos_1

Anyone got a copy\paste of this? Im not a WSJ subscriber

 

[JJSnell]

Zero sum game for the UAW. Want more money to do the same job? Then more automation will seem practical for the manufacturers. The enemy for UAW hourly workers is the automation that will replace them if they demand too much. How much the CEO makes is irrelevant. BTW, in publicly traded companies the majority of CEO pay is tied to stock performance, not specifically company performance at any point in time. In reality the equity markets determine how much the top management makes not the company board of directors after stock options are granted. This system works, but the finer points do not fit well on a picket sign.

Exactly this... Unfortunately, or fortunately however you want to look at it... the CEOs job is to run a successful company and get stock prices to increase. The CEO and other C Level management will do what it takes to increase stock value. If Darrell, who has a 12th grade education and is bolting bumper skirts on an auto for $40-$60 an hour (and higher than that after Pension and 401k and health benny contributions, then they will scrap all the Darrells and just automate everything. Tesla from day one has had a LOT of automation, their stock value is a more attractive purchase than Ford.
Cali just passed some bill where fast food employees will make $20\hr. Well I can guarantee you, most of those workers will be shown the door for self serve kiosks....

 

[Cubfan1]

Basically said that Ford takes a 60k loss for every EV vehicle it
manufactured in Q3 this year.. This begs the question of “how in the world” can any/ all of the Big Three catch Elon Musk ?

 

[turbopilot]

Basically said that Ford takes a 60k loss for every EV vehicle it
manufactured in Q3 this year.. This begs the question of “how in the world” can any/ all of the Big Three catch Elon Musk ?

Tesla market cap is $859 billion, Ford is $50 billion and GM market cap is $47 billion. Elon could have Ford and GM, if he wanted them, but who wants them? He bought Twitter for $44 billion. Just wait. The fat lady has sung. UAW is squeezing a dying goose.

 

[JExpedition07]

Tesla market cap is $859 billion, Ford is $50 billion and GM market cap is $47 billion. Elon could have Ford and GM, if he wanted them, but who wants them? He bought Twitter for $44 billion. Just wait. The fat lady has sung. UAW is squeezing a dying goose.

That’s all bullshit market cap evaluations lol, you need to do some deeper digging. Elon isn’t all that as much as I like him. Y’all treat him like gods gift. Smart man who runs a successful business but Tesla could not absorb Ford or GM. One is a smoke and mirrors evaluation, one is real output. Tesla is a long ways from that.

 

[HammaMan]

That’s all bullshit market cap evaluations lol, you need to do some deeper digging. Elon isn’t all that as much as I like him. Y’all treat him like gods gift. Smart man who runs a successful business but Tesla could not absorb Ford or GM. One is a smoke and mirrors evaluation, one is real output. Tesla is a long ways from that.

Tesla's growth is exponential right now. Not linear, not stagnated, exponential. VW just laid off their EV workforce in germany because tesla and the chinese took all of the business. I don't think elon is a messiah but he's got 100x the capacity to get shit done than just about any CEO out there. He's revolutionized EVs and by extension automotive in general, and his accolades in space launch and communications is unparalleled as well. He's rolled out more features to twitter in 8 months than they had done in the last 5 years AFTER firing 85% of the staff.

Credit where it's due.

 

[HammaMan]

Basically said that Ford takes a 60k loss for every EV vehicle it
manufactured in Q3 this year.. This begs the question of “how in the world” can any/ all of the Big Three catch Elon Musk ?

Tyrannical govt intervention, which they've begun to swing into action. This will get interesting, and it won't go how the politician's think it will. Brains and capital vs incompetent corrupt politicians --- and he own's the "public square". Personally I would have entered missile development a little sooner. He seems to be a bit of a pacifist -- space x should have had an autonomous weapons division already.

 

[icemanrrc]

Here’s a few thoughts I ponder.
I felt a previous employer wasn’t paying me what I was worth for my time, talents and energy I was providing to them. I simply left that company and went to another company that did.
I wonder what happens for the future of the big three companies if they are forced to cave in to the demands? I wonder if that will be the end of Detroit and the American auto workers as these companies start to look at shedding these financial demands by simply closing more plants in America and begin to open more in Mexico and abroad? I wonder, however, will the narrative be in a few years that the big 3 sold out American jobs or will it be the AWU forced themselves out of jobs?
No raise is free. Stock holders will want their returns. Price increases for vehicles will be inevitable in a time where interest rates are already keeping many from purchasing vehicles and customers already fed up with the current prices for new vehicles. Now add in greater price increases to cover new cost of labor if workers demand is met.
Folks need to pay attention here. There is a far greater concern here than just workers wanting a substantial pay raise. The automobile industry in America as we know it maybe forever changed. And not for the better.

 

[JExpedition07]

Here’s a few thoughts I ponder.
I felt a previous employer wasn’t paying me what I was worth for my time, talents and energy I was providing to them. I simply left that company and went to another company that did.
I wonder what happens for the future of the big three companies if they are forced to cave in to the demands? I wonder if that will be the end of Detroit and the American auto workers as these companies start to look at shedding these financial demands by simply closing more plants in America and begin to open more in Mexico and abroad? I wonder, however, will the narrative be in a few years that the big 3 sold out American jobs or will it be the AWU forced themselves out of jobs?
No raise is free. Stock holders will want their returns. Price increases for vehicles will be inevitable in a time where interest rates are already keeping many from purchasing vehicles and customers already fed up with the current prices for new vehicles. Now add in greater price increases to cover new cost of labor if workers demand is met.
Folks need to pay attention here. There is a far greater concern here than just workers wanting a substantial pay raise. The automobile industry in America as we know it maybe forever changed. And not for the better.

Completely agree, that’s why I feel unions are sort of archaic. If your are a performer, someone will pay you more $$ to come to them. More money is always available if you have skills. Employers who refuse to pay more for performance get swallowed up and cucked out by those that do and get their lunch eaten. It sort of self regulates.

 

[HammaMan]

Mexico is the 'new' china. Cheaper labor, no tariffs. UAW is all but demanding US auto to move south of the border. I wouldn't at all be surprised to hear that there's a push to get the illegals working to 'solve' these issues. NY is desperately trying to solve their tiny fraction of the issue by putting them to work. None of this is going to turn out in the manner their fairytale beliefs pretend it will. Tesla even building a plant in MX.

 

[PPK]

If Ford is truly losing $30k per EV... whle Musk is making typically 30% on each EV.. i really doubt GM and Ford will make it. Automation needed to surmount Tesla's lead is just wishful thinking, i am afraid. The internal combustion engine is what protected GM and Ford from other competitors. Take that away and they will be eaten alive. That is their key expertise. It is being nullified via the regulatory fiat.

We are going to end up with a computer on wheels. Think of Wang, UNIVAC, Sun Micosystems, Honeywell, Control Data... mainframe manufacturers who did not make the turn. We are seeing the same play out with EVs.

 

[jcaspar]

He could easily have Toyota and VW if he wanted them but again, who would want them?

Tesla market cap is $859 billion, Ford is $50 billion and GM market cap is $47 billion. Elon could have Ford and GM, if he wanted them, but who wants them? He bought Twitter for $44 billion. Just wait. The fat lady has sung. UAW is squeezing a dying goose.

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