As was stated, though, the increase will be about $900 per vehicle. That’s not to say it’s nothing, just that the vast majority of cost increases are not because of the unions or the workers, they’re choices that Ford made.
That's a good point. I forgot to include Texas' taxes ($0.20) and the federal excise tax ($0.18). Galveston's sales tax is 8.25%, which is pretty close to Sacramento's, so that's a wash. Thus, California pays about $1.19 at the pump, and Texas pays about $0.48. Altogether, the difference is...
As a note: California pays an estimated $0.80/gal in taxes on gas. The price per gallon in Sacramento is around $5.15. In Galveston, it's around $3. Where does the other $1.35 come from?
There it is. This is a huge nothing-burger, when it comes to pricing. Of course, when they raise prices by another $5k (presumably to benefit that most precious and delicate of creatures, the Shareholder), I bet there will be plenty of belly-aching about those dastardly unions.
As has been pointed out by others, labor costs are something like 5-15% of the total vehicle cost. Ford's executives aren't exactly gonna have to wear sackcloth and live in the streets just to keep the lights on.
I feel like gassing it would scratch it up, or maybe my local pump handles hang lower than average. Also, I'd be worried about water pooling in the base of the access door cutout.
Not to mention, tax deductions when they post a loss, and government bailouts when things get really bad. Corporations never do anything that might actually put them in real danger, any leadership that did that would be out in the street by end of day.
Those assets don't disappear, though, even if they don't sell as well as they'd hoped. How many Ford executives have gone bankrupt or lost their house(s) after a big failure? I bet the percentage is far lower than the employees who lost their jobs.
There's a wide gulf between "their profits are so high that they would barely notice sharing some with their workers" and "they should not profit at all". I don't think shoelessjoe was saying the latter.
Then the workers would all go on unemployment. Not to mention, as was pointed out elsewhere, that would hurt the corporations almost as much as the unions.
Exactly. When things got bad, they spread the hurt around-unions, the company, the taxpayer all got hit. But when the profits came rolling back in, somehow they never quite got back to everyone. Socialize the costs, privatize the profits.