But don't the competitors in Germany and Japan have high labor costs as well? Isn't Mercedes owned Chrysler doing better than the big two? SR --------------------------------- The Europeans have also been losing market share to the Asian producers, and have used the threat of relocating production in East Europe and elsewhere to pry concessions from their workers.
But if things haven't deteriorated as quickly as in the US, I'd guess it's because a) the European companies don't have the additonal burden of rapidly escalating health care costs to contend with and b) the labour and bankruptcy laws make it more difficult for the firms to use their courts and regulatory bodies to gut collective agreements - powerful leverage in the hands of US corps.