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Location: The Frenchie Farm, Where We Grow 'em Big!
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B/C they wanted the money to purchase Chrysler LLC. I think that was a smart move. It would have cut jobs, the demise of seven Chrysler/Dodge/Jeep products, and the closing of four US plants. IMO...I'm glad it didn't happen.
B/C they wanted the money to purchase Chrysler LLC. I think that was a smart move. It would have cut jobs, the demise of seven Chrysler/Dodge/Jeep products, and the closing of four US plants. IMO...I'm glad it didn't happen.
I really don't know what think about this at this time! I have agreed with you from the begining, but GM and Chrylser need some sort of loan to keep business running.
I'll put it this way...
>Do I want a GM-Chrysler merger, buyout to happen?
*NO, this would be a very dangerous move, risking way over 35,000 jobs.
>Should the Detroit 3 recieve some type of loan or bailout?
*YES, in order for GM and Chrysler to continue business they need some sort of loan, otherwise GM will go bankrupt some time next year. While Chrysler could totally collapse if they don't recieve help.
>The perfect sceniro:
FOR GM: To stay General Motors Corp and recieve a bailout from the gov. any mergering is not a good idea right know especially with Chrylser.
FOR FORD: Stay Ford Motor Co. and recieve a bailout, even though ford seems to be on their feet currently, it is only because they sold off all of their luxury brand cars recently (Jaguar, Land Rover, Aston Martin) they have cash at hand in Oct 2008, but what about next year? If they continue to lose billions.
FOR CHRYSLER: DO NOT MERGE WITH GM! But do look into an alliance, merger, buyout, etc. with other companies that will take the company seriously. My opinion would be make a Nissan - Renault - Chrysler alliance that would not only strenghten Chrysler but also share ideas so that Chrylser has a better chance in going global (for real) and turn the company around. Even if Chrysler must be bought out by a foreign company, so be it, at least it would save thousands of jobs in the U.S. and specifically here in metro Detroit and Michigan. Chrysler has not been in this kind of shape since the late 70's. In my opinion when Daimler AG owned Chrysler, the company was in the best shape that it had been in a long time. When the DaimlerChrysler split happened and Cerberus bought them out the entire company went straight down hill. Looking back, it is VERY VERY unfortunate that Daimler decided to sell them off over a year ago now.
I'm not sure if you agree with all of my ideas but this what seems best to me for the business and the great impact that this has on many states.
And to answer the original question, NO, they American automakers are not going to totally get dissolved. They have gone through these kinds of problems before and they have always gotten through. I don't know if every single one will get through, but all of the Detroit 3 will not totally fail.
They can't keep running at such loses as they have been for much longer.Youwould ahve thought that gopign thur the 70's recession and market would ahve tought then something but apparently not. Basically since then they are not much more than a SUV manufacturer. Every market that others have started to compete in they have loss the market. I see a much smaller company coming out of this if they come out at all.
Really a question of what's cheaper for taxpayers....a few $Bn for a temporary bail-out of a failed business (Honda and Toyota seem to be financially OK and build lots of cars in US)....or let GM/F/C go into pre-packaged bankruptcy....and spend a few $Bn in additional welfare payments for the unemployed....
US engineered and built cars have been lame for decades: inept management; weak engineers; non-productive, costly labor; dealers that are not customer focused....market of college-educated, semi-intelligent, semi-affluent buyers has been largely buying US-built Accords/Camrys for some 20yrs...and those w/a few more bucks buy German-engineered&built Mercedes (and not those POS SUVs from MB either)....
And those smart kids growing up in Detroit region (or other old industrial towns in Midwest) have migrated away to Chicago or NYC or SiliconValley for decades....Steve Ballmer of Microsoft is prob Detroit region's most famous alum, but he left some 35 yrs ago....Larry Page of Google grew up in Lansing; went to U-MI undergrad and fled to Stanford for grad school....talent flows to where the best economic and intellectual opportunities exist....places that can't attract or retain talent should be allowed to die....Darwinian selection can be harsh, but it's the most efficient approach for a globally competitive economy, unless one hopes to emulate socialist places like France or much of EU where lazy underachievers can enjoy a comfortable life on welfare, sort of like government employees in US....
Sorry to be cold-hearted, but the Big 3 have been in a no-win situation for close to 30 years. They still can't compete in quality with Toyota and Honda. It sounds like it's time for somebody to go bye-bye! Maybe if they would go back to basics, stop carrying 30 models each, and focus on 1 model for each category of vehicle, they might be able to produce something of quality at a price that we can afford. How many mid-sized sedans does one company need to produce?
I wouldn't blame the big 3's engineers. The engineers can come up with some fantastic stuff and their designers can create a work of art. They're usually a hit at the auto show and magazine articles. Once that's done, then the accountants and executives take over and rip it to pieces. Wonder how much money they'd save per car if their union contract didn't require them to pay employees who aren't working? Toyota was going to open an engine plant in Michigan until some UAW protestors went nuts and so Toyota backed out and moved the plant to another state. Nice. UAW mob bosses keep that up and they'll work their way out of business along with GM, Chrysler, and Ford.
I wouldn't blame the big 3's engineers. The engineers can come up with some fantastic stuff and their designers can create a work of art. They're usually a hit at the auto show and magazine articles. Once that's done, then the accountants and executives take over and rip it to pieces. Wonder how much money they'd save per car if their union contract didn't require them to pay employees who aren't working? Toyota was going to open an engine plant in Michigan until some UAW protestors went nuts and so Toyota backed out and moved the plant to another state. Nice. UAW mob bosses keep that up and they'll work their way out of business along with GM, Chrysler, and Ford.
I agree the UAW is the biggest down fall in the American Auto industry. I had to go to school to learn about working on the Corvette and get paid an ok wage with some benefits from the dealer that I work for. But to pay some clown 60k a year to install lug nuts on the assembly line, Get real. A monkey could do the assenbly line work for 1/4 the cost. S%^t can the union would be a start.
Last edited by Fastway57; 11-01-2008 at 07:57 AM..
Reason: Spelling
They have to get out from under those pension and healthcare obligations. I read that GM alone has 600,000 retirees and spouses they're paying for. I can't remember exactly, but it works out to like $1500 per car....no way they can compete with the Toyotas and Hondas of the world.
I know it sounds cold, but the game has changed....if the US automakers fail, the retirees are out of luck anyway.
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)....or let GM/F/C go into pre-packaged bankruptcy....and spend a few $Bn in additional welfare payments for the unemployed....
)....
