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What if you were in charge of GM?

874 messages,  Last post on Oct 28, 2009 at 10:20 AM

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

What is this discussion about? Automotive News, Classic Cars, Concept Cars, Future Vehicle


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#871 of 874
Re: One more reason they failed... [vinnyny] by Mr_Shiftright HOST
Oct 25, 2009 (2:19 pm)
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Replying to: vinnyny (Oct 25, 2009 1:49 pm)

True but....it costs the same amount of money to make a bad car as it does to make a good one....in terms of quality control I mean.
 
But aside from reliability, --it's the styling, comfort and performance that matter the most.
 
I'd say the cost of the car, if its a few hundred or even a thousand more than the competition, is not a factor for success if everything else is really really good. Toyota has pretty much proven this, as has BMW and Subaru.
#872 of 874
Re: One more reason they failed... [Mr_Shiftright] by grbeck
Oct 26, 2009 (7:08 am)
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Replying to: Mr_Shiftright (Oct 23, 2009 11:54 am)

Mr. Shiftright: Data from the Congressional Budget Office states that average real income of the bottom 90% of American taxpaypers (which should include all UAW members) fell 7% 1973-2000. The top 1%'s income rose $148% and the top 0.1% (which should include the CEO of GM) rose 343%. (this, by the way, *excludes* capital gains).
 
This doesn't prove that the wages of UAW members failed to keep pace with inflation. The number of UAW workers in that 90 percent is literally a drop in the bucket...if that amount. An increase in UAW wages would simply be overwhelmed by the direction of everyone else's wages in that income bracket of society.
 
The bottom 90 percent of the population also includes illegal immigrants and the native workers who compete directly with them. Ilegal immigration produces downward pressure on the wages of people who compete directly with them in the employment market for jobs. This downward pressure will affect the entire 90 percent bracket.
#873 of 874
Re: One more reason they failed... [grbeck] by Mr_Shiftright HOST
Oct 26, 2009 (7:17 am)
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Replying to: grbeck (Oct 26, 2009 7:08 am)

I don't think so. I think the bottom 90% would include ALL UAW workers.
 
Households earning over $100,000 is about 15%. (85th percentile and above)
 
At $60000 per year, a UAW worker would be in the 63rd percentile.
 
A person earning minimum wage would be in about the 15th percentile.
 
U.S. national median is about $44,000 (50th percentile).
 
SOURCE: US Census Bureau, 2005
 
No matter how you cut it, if you're in 90th percentile or less, you are earning less money than you used to.
#874 of 874
Re: One more reason they failed... [vinnyny] by jae5
Oct 28, 2009 (10:20 am)
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Replying to: vinnyny (Oct 25, 2009 1:49 pm)

While I agree with you and the host that quality has to improve, continuously improve, GM can't continually use the "competitive disadvantage" excuse either. The day is going to start and end with product, the whole product, not just a little glamour and glitter. And it doen't help that GM over-prices their vehicles then has to put $$Ks on the hood to move the metal. Kind of counter-productive and doesn't really fall under competitive disadvantage.
 
Also, you earlier posted about the southern states offering tons of incentives to the the "foreign" manufacturers and not to the domestics. You do understand that this is based on new plants / facilities and the "incentives" don't last forever, usually lasting 5 ~ 10 years? Also, why would you offer a tax incentive when you don't have to? I mean, there may be a reason to do it, like if you're Michigan and you're trying to keep your one ecomonic base, but then can you actually afford reduced tax revenue? Unlike what the Fox gang thinks, you can't just cut taxes - eventually you're going to have to raise very high & very quickly.
 
Don't get me wrong, you've made good points & I agree with some of them. But the bottom line again comes to product, market knowledge, labor, management, willing to correct errors and being fleet of foot, especially in the global world.

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