In article <f6f162466bdbe0dfd0ef1d86383d9c2b (AT) mixmaster (DOT) it>
George Orwell <Use-Author-Supplied-Address-Header@[127.1]> wrote:
Wall Street Journal - May 20, 2007
David Cole, a longtime industry consultant who leads the Center for
Automotive Research in Ann Arbor, Mich. says one of most critical
challenges facing Chrysler's new owners is negotiating with the United
Auto Workers what he calls a "transformational labor contract" that
lifts from the company much of the $18 billion burden it carries now
for retiree health care.
Why should consumers care? Because restructuring the health-care burden
would free up capital for research and development, leading to better
technology and improved quality for future models, Mr. Cole says.
Perhaps transaction prices for Chrysler cars would go up, but the cars
would be better.
In theory, if Chrysler had another $500 to $1,000 to invest in each car
-- about what it spends on healthcare now -- it could offer more
standard safety equipment without drastically raising the sticker
price. In fact, offering more features while holding prices relatively
flat is another strategy Toyota has used to boost sales...