Friday, September 21, 2007

Michigan 3 vs. Japanese 3

According to Edmunds, the average automotive manufacturer incentive in the U.S. was $2,362 per vehicle sold in August 2007, down $159, or 6.3%, from July 2007, and up $51, or 2.2%, from August 2006.

The average incentive for the "Michigan 3" (Ford, GM, Chrysler) was $3,373, and the average for the "Japanese 3" (Nissan, Honda, Toyota) was only $1,365. Add an additional $1,500 per vehicle in health care costs for the "Michigan 3" compared to about $200 per vehicle for the "Japanese 3," and it's no surprise that GM lost $2 billion in 2006 and Ford lost $12 billion.

3 Comments:

At 9/22/2007 7:40 PM, Anonymous Anonymous said...

So are you making an argument for Universal Health care?

...Add an additional $1,500 per vehicle in health care costs for the "Michigan 3" compared to about $200 per vehicle for the "Japanese 3," and it's no surprise that GM lost $2 billion in 2006 and Ford lost $12 billion.

http://mjperry.blogspot.com/2007/09/michigan-3-vs-japanese-3.html

Japan's health care system is characterized by universal coverage, free choice of health care providers by patients, a multi-payer, employment-based system of financing, and a predominant role for private hospitals and fee-for-service practice. Virtually all residents of Japan are covered without regard to any medical problems they may have (so-called predisposing conditions) or to their actuarial risk of succumbing to illness. Premiums are based on income and ability to pay.

http://www.nyu.edu/projects/rodwin/lessons.html#introduction

 
At 9/23/2007 9:17 AM, Anonymous Anonymous said...

Are you trying to make a point? If so..... what

 
At 9/24/2007 7:36 AM, Blogger Walt G. said...

The points are that the Japanese 3 price their cars closer to what the customer will pay, and 100- year-old companies have commitments to past employees and citizens who built the U.S. companies and the U.S.’s infrastructure.

 

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