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Automotive News & Views Inside Line Article Comments Article Comments Kiss the American Auto Industry Good-Bye (as We Know It)
420 messages, Last post on Oct 16, 2007 at 3:43 AM
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Article comments for Kiss the American Auto Industry Good-Bye (as We Know It) - Take a snapshot for posterity, because today's U.S. automotive landscape won't look like it does for much longer. (more)
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| Gm is the only american car company that is doing good, but know one seems to notice. | |
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I was born and raised in Detroit, but made a conscious decision to leave while I was in college. I saw a few things happening (this was over 20 years ago). First, the U.S. had anti-trust laws prohibiting a then very crippled Chrysler from merging with either of the others. The anti-trust laws were set up when it was only a U.S. economy not a global economy. Other countries often protect the best interests of their industries; we make it harder for them to compete on a global stage. Second, the union contracts and set up were untenable. There was no value put on quality work, only seniority. I had a lot of friends who would have loved to go into the industry, but kept getting in and getting cut as the most junior. Having worked in other businesses/industries for the last 20 years; its often the opposite. The higher paid people are let go in favor of the lower paid. Third, Detroit was very reactive. This was a combination of the local unions and the top management. I worked for GM, and long-term planning often took a back seat to crisis management. Given all this, I still can't bring myself to buy a car from a Japanese-based company - too many people in my formative years lost jobs due to the influx of autos from there. OTOH, I drive a Mercedes-Benz, because they make the best car for my wants. |
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Replying to: jsmilesrmhs (Mar 06, 2007 2:23 pm)
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Replying to: bumpy (Mar 06, 2007 5:21 pm) |
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Replying to: jsmilesrmhs (Mar 06, 2007 2:23 pm) Let's see, GM has decent product that is finally approaching the quality of the competition. (and by the way, I have only owned GM and Ford products in the past 20 years.) However, their main supplier (Delphi) is in Chapter 11. So are many of their tier 1s. That means that they are going to have a heck of a time squeezing the life out of them for cheaper parts. (Glad we decided to pass on the GM business.) When is the last time they have MADE money for an entire year? What is their return on investment over the past few years (negative)? What about all the accounting issues recently? What about their pending liabilities related to Delphi? GM is not a company that I am excited about.
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Replying to: jlawrence01 (Mar 06, 2007 6:47 pm)  Having said that, I am most encouraged by the courageous baby steps GM has taken so far. Here's hoping they stay on track for the next four or five years. |
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| The domestics flip flop in cycles. One minute Ford is looking to be in the best position, 2 years later GM is. Just last year, Chrysler was hot with the 300. Now we're talking obliteration. Again, like Nippon said, within the past 6 months or something GM is looking like its turning a corner. Great, good for them. But how bout 5 years from now? It's that consistency that has always been lacking and I'd be willing to bet even the non enthusiasts know this and that is why the lost market is going to be a tough road to recover from. Toyotas consistency over the years (even if compromised over the past few months) has resonated with buyers and that is why they continue to remain unstoppable. | |
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...has always gone through these boom and bust cycles. 1920s - Hot new car company -boom 1934 - Airflow flops - bust 1940s - Actually in 2nd place ahead of Ford - boom late 1940s-early '50s - staid conservative styling - bust 1957 - Forward Look a hit - boom 1958 - Quality woes - bust 1962 - Plucked Chicken Plymouths and Dodges - bust 1965 - Mopar Muscle Era in full swing - boom 1974 - Energy Crisis I - bust 1983 - Iacocca and K-Cars as saviors - boom 1987-93 - Overreliance on K-platform - bust 1994 - LH cars - boom 1998 - Daimler "merger of equals" - bust 2003 - Cool new 300 and others - boom 2006 - Overreliance on trucks and SUVs - bust |
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That is it in one word. As we sell our countries economic future to the lowest bidder. We must think long term in all our purchases. A new way of consumerism? I still believe Ford will turn itself around, it has the cash. GM won't go anywhere they will survive just fine. The media has played a partial role in this in the constant bashing of GM and Ford products and letting the Toyota/Honda issues slide by. Granted, GM/Ford are partialy to blame too. But the media doesn't let up! |
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Replying to: jlawrence01 (Mar 05, 2007 8:44 pm)
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Automotive News & Views Inside Line Article Comments Article Comments Kiss the American Auto Industry Good-Bye (as We Know It)
