A Recession Success Story…and Lesson
Throughout the current recession Hyundai has not only remained profitable but has significantly expanded its manufacturing presence in Alabama and Georgia. Other foreign auto makers have had similar success. Why is it that the Big Three in Detroit have struggled so much—with two being handed generous taxpayer-funded bailouts—while we hear nary a peep about Honda, BMW, Hyundai, etc., who all have plants here?
The United Automobile Workers union has long tried to organize plants in the United States operated by foreign carmakers, most of which are in the South, but has yet to succeed anywhere.
No unions. Unencumbered by the dead weight of the UAW, foreign makers are able to offer competitive salaries and benefits while remaining competitive and profitable in a down market. Workers at GM, Chrysler, and Ford could learn a valuable lesson from this. Will they?