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DaimlerChrysler CEO Dieter Zetsche, a man who knows a thing or two about the problems facing the US auto
industry, took the opportunity to warn European Union automakers that they may eventually endure the same structural
problems their US counterparts are struggling with if action is not taken.
Europe, of course, is suffering from many of the same problems that we've been seeing here in the US-- particularly out of whack cost structures due to overwhelming labor costs and ever-increasing competition from Asia. Adding to the problems is the greater diversity within the EU market. Zetsche is calling on the automakers to focus on, well, making cars, and states that EU politicians need to do their part to clean up problems with European social-security systems.
[Source: Financial Times]
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Reader Comments (Page 1 of 1)
Razib Ahmed @ May 1st 2006 6:36PM
"particularly out of whack cost structures due to overwhelming labor costs and ever-increasing competition from Asia."
Now India is gradually trying to enter this field with its cheap labor. However, DaimlerChrysler CEO Dieter Zetsche should be happy that DaimlerChrysler has now presence in 24 Indian cities (http://www.southasiabiz.com/daimlerchrysler/) and in 2005, DaimlerChrysler sold more than 2000 cars in the Indian market. This year the prospect looks even better.
Jason @ May 1st 2006 8:12PM
Personally, I tend to focus on avoiding the mistakes made my Dieter Zetsche himself, and make sure I don't look like a crazy scientist.
MadeinDetroit @ May 1st 2006 9:53PM
Watch the paint their Dieter....
MadeinDetroit @ May 1st 2006 9:54PM
Watch the paint there Dieter...
XJ @ May 1st 2006 11:09PM
Face it, China will be the product-oriented capital of the world (if not already), and the U.S. will be the service-oriented capital. Everyone else will be in-between. Labor unions here had better get used to it.
Howard Kerr @ May 1st 2006 11:11PM
I realize the British don't always consider themselves to be a part of the EU, but the U.S. auto industry is headed in the same direction as that in the U.K. That is, lots of makers eventually consolidated into a few companies. Then British Leyland, once the largest U.K. maker, badge-engineers to cover all possible market segments with mediocre cars having marginal build quality. Finally, all car production winds up in the hands of foreigners. Although in the U.K.'s case, the unions had a lot to do with the downfall....oops.
Philbert @ May 2nd 2006 8:49AM
One step forward for globalization, two steps backwards for the common working man.
Chris @ May 2nd 2006 11:07AM
At $75 per hour, the cost of a US Autoworker to a US Auto manufacturer, I hope they DO NOT make "this' same mistake... and avoid anything that looks, smells and acts like the UAW (Unilateral Accounting Weapon).
HemiDakota @ May 5th 2006 10:58AM
Eric, remember the Dodge Razor concept, well stand by - some info: http://www.srtmopar.com/hemiblog/?permalink=512