How Germany Builds Twice as Many Cars as the U.S. While Paying Its
Workers Twice as Much


LEIPZIG, GERMANY - NOVEMBER 05: Workers assem...

A BMW assembly plant in Leipzig, Germany.

In 2010, Germany produced more than 5.5 million automobiles; the U.S
produced 2.7 million. At the same time, the average auto worker in
Germany made $67.14 per hour in salary in benefits; the average one in
the U.S. made $33.77 per hour. Yet Germany’s big three car
companies—BMW, Daimler (Mercedes-Benz), and Volkswagen—are very
profitable.

How can that be? The question is explored in a new article from
Remapping Debate, a public policy e-journal. Its author, Kevin C.
Brown, writes that “the salient difference is that, in Germany, the
automakers operate within an environment that precludes a race to the
bottom; in the U.S., they operate within an environment that
encourages such a race.”


http://www.forbes.com/sites/frederickallen/2011/12/21/germany-builds-twice-as-many-cars-as-the-u-s-while-paying-its-auto-workers-twice-as-much/
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