you have the taxes and heath care part of everyone cost. It the retirement benfits that are killing the big 3. They are quickly approaching a 1 to 1 ratio of works to retired workers and lets face it that is not profitable. That above is the same reason why SS is failing. There are to many taking out and not enough putting it in.
Most companies do not have to pay the health care cost of their retired workers.
Actually in Germany essentially everyone has health care so actually the companies are paying the health insurance for retired workers via the insurance premiums for workers. Someone over here in Deutschland told me that for each worker there are 2 non workers being supported...and with negative birth rate it will only get worse.
So why is it a problem for US manufacturing, car makers in particular? Well, its probably easier for the Auto execs to stiff former workers their benefits than it is to actually change their business model...this is what they have been doing the past 30 odd years, works fine for them, and congress is to scared to actually do anything about it.
The big three are well known for their attempts at preventing any form of innovation in the automotive industry. That is, after all, how and why they created the loop hole in the fleet milage requirements for "small trucks"...and then proceeded to flood the market they created with cheap, low tech, crap - sold at a wonderful profit to buyers with finance from non other than...the automakers.
The perfect manufactured market.
Cheaper to buy a congress man and make a market for SUV's than it is to build a better car.