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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
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Replying to: dave8697 (Nov 25, 2008 7:22 am) I think you should start reading a financial paper, if you think the underlying fundamentals of the economy are good! Many people have overspent for years, they've bought houses that are now worth 50%, or have seen no appreciation in 10 years, people have nothing to show for 10 years investing in 401K's ... As the Obama team is now saying - we'll be lucky, very lucky, if we're out of recession in 2-3 years. Decades of bad decsions that got us in this situation - whether in the Big 3 or the economy, are not going to be fixed in a few months. I think the Big3 will again get raked-over-the-coals if they come back to Congress with a few tweaks to their business-as-usual. They had better come back with a plan for a market of 10-12M vehicle sales and what realistic slice they have of that, what revenue they have from that, and what their total costs will be. And the bottom line better show they can make a profit! If they come in with vehicle sales in 2009 will be 15M, and our marketshare will increase, but we'll still lose money because of pensions and wages, then they should be ushered to the door (or committed for wasting our time). The Big3 need to plan for a very bad economy and how to make $; if the economy turns around then great they make more $. But we can not loan $25B now, and in summer '09 when that's gone, give them another $25B. I am not responsible for what the Big3 or the unions got themselves into; they have never helped me, and therefore I see little reason to support them forever!  Let them all get in a room, and decide what they will cut to start making money; they either decide to live in some matter or decide to hold their position and die!
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Replying to: driver100 (Nov 25, 2008 7:33 am) All I can say is WOW. That is one impressive operation. Too bad it is not sitting in the USA. |
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Replying to: andre1969 (Nov 25, 2008 7:34 am) Since they just introduced the 370Z, last year the GT-R and the Maxima, and the rest of their lineup is fairly new, maybe they just don't have anything left to redo. Their oldest products are the Xterra and Titan and maybe they decided not to invest in a redesign of those given the market for those vehicles. It is also prudent not to waste money, BEFORE you get in trouble, rather then wait until you're months from bankruptcy to save $. 
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Replying to: andre1969 (Nov 25, 2008 7:34 am) Those shows are geared to getting customers' butts behind the wheel, so that they will keep Brand X in mind when it comes time to buy a new vehicle. They aren't about unveiling new concept cars or production models to a national audience. I can't imagine that local Nissan dealers would want to be completely left out of that action. |
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Replying to: kernick (Nov 25, 2008 7:42 am) In the best of years selling huge high margin SUVs, GM could not make 5% net profit. I would consider that a good reason to fold up the tent and go home. It looks like Ford has a plan. It probably will send more of their operations out of the USA. Will Ford's share of a bailout build factories in other countries like that beauty in Brazil? |
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Auto Industry Impact on the U.S. Economy • Nearly 4% of the U.S. GDP is auto-related • One out of every 10 U.S. jobs is auto-related • Accounts for $690 billion, or about 20% of all U.S. retail sales • Generates more than $10 billion of annual tax revenue • Largest purchaser of steel, aluminum, iron, copper, plastics, rubber and electronic chips • Second only to the semiconductor industry in R&D spending GM’s Contribution to the U.S. Economy • Directly employs approximately 96,000 people • Has 6,500 dealers across the country who employ another 340,000 people • Provides pension benefits for nearly 475,000 retirees and spouses • Extends health care benefits to about 1,000,000 people • Purchased in 2007, $30 billion of goods and services from 2,000 suppliers in 46 states • Sold 22 million vehicles in the last five years that have more domestic-parts content than Honda and Toyota Learn more at gmfactsandfiction.com View a video at youtube.com/watch?v=72cHfOKoA1c Changing for the Better • GM negotiated a landmark labor agreement with the UAW in 2007 that will enable us to match labor costs with foreign automakers by 2010 and virtually erase the competitive gap • 11 of GM’s last 13 new vehicle launches have been cars and crossovers, and 60% of our capacity will be dedicated to these vehicles by the end of 2010 • GM leads in manufacturing productivity in 11 out of the 20 North American segments in which it competes (2008 Harbour Report) and has 5 of the top 10 best rated engine plants in North America and the #1 transmission plant • In the 2008 J.D. Power Initial Quality Study, GM had more segment leaders than Toyota or Honda •GM have reduced warranty repairs by 40% over the last five years •GM is targeting fuel economy leadership in every class of vehicle we introduce and GM has 20 models that get at least 30 MPG highway, based on 2009 EPA estimates – that’s twice the number of our nearest competitor • GM is making a major commitment to hybrid cars and trucks and offers nine hybrids for 2009 • GM is a world leader in biofuel vehicles with more than 3 million flex-fuel vehicles on the road in the U.S. and has committed to make flex-fuel vehicles 50% of annual volume by 2012 •GM has established the world’s largest hydrogen fuel-cell test fleet here in the U.S. •GM is working to bring the Chevy Volt extended range electric vehicle to market by November 2010. Volt is designed to move 75% of America’s daily commuters without using a single drop of gas!
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Replying to: andre1969 (Nov 25, 2008 7:34 am) The other thing not mentioned by the previous posters is that Chicago and Detroit are both in the Midwest, a market largely devoted to domestic cars. I remember visiting Chicago and seeing many cars I had never seen even once here at home, except in pictures. The bigger markets away from the Midwest are also much bigger markets for the imports, so it makes sense for them to concentrate show dollars there. At this rate (we are up to what, six automakers not attending the Detroit show, all foreign?) the domestics will have the Detroit show all to themselves. But will they be able to afford a large presence there? It looks like they are not spending much on making it to the California shows this month.
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Replying to: American_Eagle (Nov 25, 2008 8:56 am) Accounts for $690 billion, or about 20% of all U.S. retail sales GM only accounts for about $150 billion so the others can pick up their share. Those are all nice statistics about GM. You left out the most important one. GM lost $72 BILLION over the last 4 years. They have NO PLAN to pull out of that kind of loss. GM lost money the year Toyota had their most profit EVER. If GM could not make money in 2004-2006. How can they make money when the economy is in the toilet? Why prolong the agony and throw away your children's future? |
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Replying to: nippononly (Nov 25, 2008 9:14 am) |
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I like cold hard blue Capatalism, whatever that means. I don't find Capitalism to be cruel, only fair and just. I have written off my fair share of companies due to poor customer service or poor product buying experiences. Here are all of the companies I've written off for years now: 1) Chrysler (1995 Vehicle purchased in 1994.... probably wrote them off around 4 years later as I had tremendous warranty costs right after the 3 year 36K mile mark, and although I had a lot of warranty visits the first 3 years, I didn't write them off until the problems increased EXPONENTIALLY after warranty expiration; thanks Chrysler engineers; you got it JUST RIGHT with a perfect design to fail like clockwork AFTER the warranty expired. Good job, your design timing was better than Rolex! (Will go bankrupt in 2009 without 3rd bailout!) 2) Ford (guilty by association with Big 3) (Will go bankrupt in 2010 w/o bailout #2)? 3) GM (guilty by association with Big 3) Will go bankrupt by Xmas w/o bailout #2)? 4) AT&T (thriving despite being on the top 10 WORST lists of customer service) 5) Circuit City (Filed for Bankruptcy recently; good riddance! middle finger is appropriate to their workers!) 6) Best Buy (Thriving despite terrible Customer Service reviews; probably because Good Guys, Tweeter, and others have gone out of business first). 7) Insurance Agent: Eastwood Insurance (criminals) 8) Insurance Company: Bristol West (criminals) 9) Insurance Underwriter: Coast National Insurance (associated with above) Based on the list above, I think I have a good knack for hating/avoiding/writing-off companies that are doomed to fail. Inevitable failure; just a matter of time. Oh yeah, Bank of America almost made the list above, but they did finally settle after a few letters going up the chain. Companies that honored their product by honoring warranties, contracts, terms, and conditions, and even display exemplary service by extending warranties when needed; free of charge; demonstrated a willingness to care about retaining a customer: (I'd DEFINITELY BUY from these companies again). 1) Honda (thriving) 2) Sony (but they have 1 strike; still good). 3) Audi (best car to date in every way) 4) Kenwood (fixed my car stereo 6 months after warranty expired) 5) Mercury Insurance (pays out on claims; what a novelty for an insurance company). 6) Cox Cable (good phone and cable service, good customer service, but is getting pricey!) 7) Toyota (based on relatives and friends' insanely reliable experiences) 8) Crutchfield Electronics
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