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Do You Favor A Government Loan To The Detroit 3?

3958 messages,  Last post on Oct 02, 2009 at 4:52 PM

You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires

What is this discussion about? Legislation


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#932 of 3958
Re: Car Pool to Washington [cooterbfd] by tlong
Nov 27, 2008 (1:31 pm)
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Replying to: cooterbfd (Nov 27, 2008 12:27 pm)

No. It's on it's way, but not complete.
 
So how would you propose we save as many of these D3 jobs as possible while making our auto industry truly competitive? What is the Chapter 11 alternative that preserves jobs?
#933 of 3958
Re: Car Pool to Washington [kernick] by tlong
Nov 27, 2008 (1:34 pm)
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Replying to: kernick (Nov 27, 2008 1:27 pm)

GM has more models higher than 30 mpg than any other company
 
I'd say this is mostly advertising hype. Honda could have 8 divisions and sell the Civic under 5 names and it would have more models over 30mph, too.
 
The problem is that in matching the sales-price of the competition, while having higher costs, and having to give large incentives because of years-past quality issues that linger with the consumer, GM doesn't make any money on these.
 
A related problem and more important IMHO is that if GMs cars were more expensive, but CLEARLY BETTER, many people would pay the difference. But GMs cars are not as desirable, especially the small cars. People pay more for iPods because they are more desirable. GM should make their cars this way, too.
#934 of 3958
Re: Uncle, can you spare a dime? [gagrice] by maple2
Nov 27, 2008 (3:05 pm)
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Replying to: gagrice (Nov 27, 2008 11:45 am)

It will also give Toyota, Honda and others the right to protest subsidizing the competition. I hear having a level playing field all the time in here. How much more level than two companies both building cars in the USA
 
Toyota and Honda have no business protesting anything in NA they are lucky to even be allowed to do business here. If GM and Ford were allowed to do business in Japan do you think the japs would even think about giving them a handout.
 
Those charts treat Canada the same as USA made. I DON'T THINK SO
 
Well in all fairness Honda and Toyota benefit build plenty of cars in Canada too,Why arent you complaining about the way they calculate their American content?
#935 of 3958
Re: Uncle, can you spare a dime? [maple2] by tlong
Nov 27, 2008 (3:54 pm)
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Replying to: maple2 (Nov 27, 2008 3:05 pm)

If GM and Ford were allowed to do business in Japan do you think the japs would even think about giving them a handout.
 
Japan has fit products to our market by altering or replacing their right-drive, small vehicles offered in Japan to build even large, left-drive trucks in the US. Tell me about the small D3 cars that are built with high quality, small engines, left drive for the Japanese market.
 
It may be difficult for the D3, but the Japanese companies did it here. How much effort have the D3 put into making products that fit the Japanese market? Your argument is a smokescreen for no effort by the D3.
 
And of course now they have no money to even make the effort in Japan.
#936 of 3958
Re: effect of the media [rogeliov] by nvbanker
Nov 27, 2008 (3:57 pm)
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Replying to: rogeliov (Nov 26, 2008 10:09 pm)

it's not Japan or Korea we should be worried about. The Chinese are poised to strike anytime.
 
You're right - We should have been afraid of the Japanese a long time ago (it's too late now), the Japanese should be very afraid of Korea, and Korea should be concerned about the Chinese.
 
We're done for here in the US for manufacturing......
#937 of 3958
I'll second that emotion... by iluvmysephia1
Nov 27, 2008 (4:11 pm)
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done. No deal. Finished. Cya-nara. Over with. Goodbye.
#938 of 3958
Re: Uncle, can you spare a dime? [tlong] by maple2
Nov 27, 2008 (5:20 pm)
Reply

Replying to: tlong (Nov 27, 2008 3:54 pm)

Tell me about the small D3 cars that are built with high quality, small engines, left drive for the Japanese market.
 
Why dont you explain to me the purpose of designing a car for the jap market if you wont be allowed to sell it there in the first place?
#939 of 3958
Re: Car Pool to Washington [tlong] by cooterbfd
Nov 27, 2008 (5:35 pm)
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Replying to: tlong (Nov 27, 2008 1:31 pm)

Well, I harken back to an interview Bob Lutz did way back when he started at GM. He asked the beancounters this question. We're selling cars w/$4000 in incentives on the hood. If we were to invest another $500 in better quality parts and materials, and then the car became desirable enough to take $2000 off the hood, would we not increase revenues by $1500? The beancounters said yeah, we would, but we don't look at it that way.
 
Case in point today. New Malibu has a base MSRP of about $20,500. Base Impala, about $2500 more. Yet, look at ads for both cars. i see ads every day around here for the Malibu LS for about $19,000. The Impala is generally advertised for a few hundred to a thousand more. Seeing as how the Impala is "old school" GM and the Malibu is "new school", getting better materials and such, it's no wonder that the smaller, "cheaper" Malibu commands almost as much as the bigger "more expensive" Impala.
 
Remember, the Big 3 haven't begun to see the real savings from their 2007 contracts (VEBA). Now, that's not to say that more savings can't be negotiated right now, that would say loosen work restrictions, save healthcare monies, shrink the jobs bank, etc.
#940 of 3958
Re: Uncle, can you spare a dime? [tlong] by cooterbfd
Nov 27, 2008 (5:41 pm)
Reply

Replying to: tlong (Nov 27, 2008 3:54 pm)

".....Tell me about the small D3 cars that are built with high quality, small engines, left drive for the Japanese market."
 
What about the Holden Barina and Viva, or the Vauxhall Agila and Astra??? All GM owned, RHD (not left) and available now.
#941 of 3958
Re: Uncle, can you spare a dime? [maple2] by tlong
Nov 27, 2008 (6:16 pm)
Reply

Replying to: maple2 (Nov 27, 2008 5:20 pm)

Why dont you explain to me the purpose of designing a car for the jap market if you wont be allowed to sell it there in the first place?
 
Quote from a March, 2008 article:
 
"Wander through Tokyo's upscale wards and you'll find no shortage of expensive German models".
 
BMW, Mercedes, and Audi manage to sell in Japan.

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