Auto Companies

[dieseltaylor]

A skeptical Automotive News Europe reader commented that Volkswagen's quest to topple Toyota as the world's No. 1 car company will bankrupt the German automaker. That won't happen soon, or likely ever.

VW has a cash pile of 19.6 billion euros ($27 billion), 9 billion euros more than at the start of the year. The cash surplus was boosted by record sales of 5.4 million new cars in the first nine months. The company expects 2010 unit sales to exceed last year's record level of 6.3 million cars, driven by high growth in China and booming sales at its Audi premium brand.

COuld it be that the co-operative model of workers and management in Germany actually has merits over other systems of enterprise?

There may be hope - Mullally seems worth his dough -

Mulally negotiated four new agreements with United Auto Workers, which has brought down labor costs from $76/hour to $55/hour.[12]

He lives within three miles of his office at Ford's global headquarters in Dearborn, Michigan, arrives at 5:15 AM every morning, and works for twelve hours. He has a meeting with Ford's executives, called a "Business Plan Review" every Thursday at 8:00 AM in the "Thunderbird Room" at Ford Headquarters.[12] At a "town meeting" of information technology staffers in February 2007, Mulally said, "We have been going out of business for 40 years", Mulally told a group of 100 information technology staffers at a "town meeting" and has repeated this message to employee groups.[29]

[ironbar]

I'll tell you true, I've been amazed at the amount of money VW is spending here in Chattanooga at their new plant. When it was pointed out that they needed at least another 2000' foot of rail line installed, for a run around track, they didn't bat an eye. People who understand how to spend money to make money.