"Detroit's Big Three Face Obstacles in Restructuring"

During 1900s American automakers had a large market share, due to increase competition from foreign automakers it started sliding down. The Detroit's big three: General Motors, Ford and Chrysler are all suffering because of foreign competitive pressure. There are Various factors like health care, pension and different benefit programs that American auto makers provide to their employees in regards to their foreign competitors.


The Detroit's big three are burdened with the obligations to provide health care benefits for employees.In addition, foreign auto companies are not burdened with the same cost, because nearly all competitive countries have national health care systems. Foreign competitors are more focused in better products developments. The American companies are more focus on giving benefit on employee than focusing on making competitive products.

I think U.S. auto companies need to figure out how to reduce the health care cost and should more focus on making better product than foreign competitors to attract more potential consumers. It might improve the comparative advantage and bring a huge benefit for auto companies in the United states in the future. If it is hard for the U.S. automakers then they should import automobiles from Asia instead of manufacturing here. In Asia, labor is cheap and they have national health care system. I  think  U.S. auto should think about comparative advantage or outsource the companies where they can focus into their product and compete with foreign competitors.