TORONTO and DETROIT, Aug. 6 /CNW/ - The outspoken Canadian labour leader,
Canadian Auto Workers President Buzz Hargrove told a group of automotive
investors this morning that the current focus by the Big Three on labour
concessions is futile and won't help the overall picture of the North American
"Labour concessions cannot possibly have any meaningful effect on the Big
Three's market share in their home market," said Hargrove in a speech to the
JP Morgan Automotive Investment Conference in Detroit.
"Even if the Big Three get everything they are asking for from the UAW,
that would reduce the average production costs of a vehicle they sell in North
America by only $500," said Hargrove.
- "This is equal to less than 2 per cent of the average selling price
of a new vehicle in the U.S.
- One-sixth the current sales incentives which the Big Three are
currently using to sell new vehicles.
- One-twentieth of what Toyota saves on the import of a Lexus due to
the artificial suppression of the Japanese foreign exchange rate.
- Less than one-quarter of Toyota's current per-vehicle profit margin
on North American sales."
Hargrove said all the focus on trying to extract labour concessions
diverts attention from the North American industry's real problems, which
derive from falling market share of domestic producers. This is the end result
of a huge and growing automotive trade imbalance with the rest of the world,
according to Hargrove.
For further information:
For further information: CAW Communications, Shannon Devine, (cell)
(416)302-1699; For the transcript of the speech, email Shannon.Devine@caw.ca