How Are the Big Three Auto Makers Doing?

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Aug. 1 (Bloomberg) -- Adam Johnson reports on auto and car parts sales on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Today is auto sales day, of course when the big three tell us how they are doing.

Let's talk tires with michelin's pete selleck -- the company is hiring, expanding, and making a lot of tires.

We aren't guarding our 19th plant in north america in anderson, south carolina -- we are starting starting our 19th plan in north america.

We have been able to find all of the people right there in anderson county, south carolina.

Very good news.

The president visited chattanooga, amazon plant, a big stink about $11 an hour.

What is your base pay?

A plant like that people will start between 10-20, more $15 and $16 and go up.

Manufacturing jobs are very attractive jobs.

The impact the jobs have on the entire community, the multiplying effect, is really tremendous.

A closely is your business correlated with the auto sales we are going to see today?

Roughly about 80% to 85% of sales is replacement market.

You have to replace your tires when they wear out and that is where most of our sales are.

Nevertheless, we are involved with the oem makers -- the f-150 , those tires are michelin.

And excuse me, that was a south carolina shameless plug.

-- excuse me, that was a south carolina shameless plug.

Your book goes to the hard disk of this.

You said we cannot have a foreign policy unless you selleck is successful.

And i was asked if we are producing in the school system those with qualifications and skill sets you you need.

There are stories that hundreds of thousands of jobs in manufacturing are going begging in this country because americans are not graduating with the skills people like you need.

That is a challenge.

We need more young people going into stem programs -- instead of taking the easier courses and have any good time, you bought the down and study science or engineering or mathematics.

Boy, you are tough.

An example, this year this country will need about 120,000 new computer sciences out of college and there will only be 40,000 americans will graduate with a great.

But i don't need a computer science degree to make it higher , do i? you need an engineering and technical degree.

The people we are hiring today are off much more skilled than the people we hired 30 years ago.

To get in as a production worker, good solid high school, as a maintenance worker, technical education and we hire a lot of engineers.

Are people doing a better job making those tires that allow you to drive when you have a flat -- because they do not last as long and they are expensive.

The carmakers drove us for trying replace the spare tire to improve fuel economy and improved emissions.

Solutions to try to get rid of the spare tire like the runflat has been driving innovation the last 10 years.

Input costs, how do you manage it at a large scale?

A lot of what we buy our commodities.

Natural rubber is the largest.

It is an open market.

The costs are six times higher than 10 years ago.

So, those costs have actually been mostly passed on into the marketplace, so tires are more expensive today than they were.

But we also dramatically improves productivity.

He mentioned michelin produces tires for the natural gas ford 150, so who is buying in natural gas pickup question mark here is the head of ford's commercial vehicles sustainability group.

The early adopters have been the commercial vehicles because commercial vehicles tend to use more fuel, so therefore they end up -- they end up seeing the best benefit.

They get the quickest payback return on their investment because they're using more fuel.

A personal user is less likely to burn that much fuel so it is -- it takes longer for the payback.

That is why we have seen commercial people use it first.

With the growth of the infrastructure around the country and the the price differential now between gasoline at almost four dollars a gallon and in some cases like oklahoma, natural gas is going for $.29 a gallon -- $.79 a gallon.

There is such a difference in gas prices that the general public will be taken advantage of this as well.

What is changing inside the car?

As we all become more dependent

This text has been automatically generated. It may not be 100% accurate.


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