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The failure of the Detroit automakers
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bacasper



Joined: 26 Mar 2007

PostPosted: Sun Nov 09, 2008 6:04 pm    Post subject: Reply with quote

mindmetoo wrote:
bacasper wrote:
khyber wrote:
I just don't get it. America HAS some of the greatest engineering minds in the world; it's fair to guess that Ford has a least a couple of those. If they can't design a decent affordable efficient car what that says to me is that they are a company that has given up: Why give them money...

It's not that they CAN'T design one, they just refuse to for the same reasons automakers and the oil companies sabotaged the public transportation infrastructure in the last century: they need to keep the American public guzzling and paying for gas at the highes rates possible.


No. Now you're getting your information from Roger Rabbit? Geez.

Well, if it isn't the status quo's leading apologist.

Rolling Eyes
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BS.Dos.



Joined: 29 Mar 2007

PostPosted: Sun Nov 09, 2008 7:07 pm    Post subject: Reply with quote

I think the other thing is that if the administration do throw cash at the failing US auto industry, and I believe they will, then it should also back-up this commitment fully and not just pour cash into what appears to be a rather large hole. Rather, the administration needs to sit-down with the auto boys and together, formulate a strategy that will in-turn influence transport policy. Whatever way forward is deemed as being most appropriate, either LPG, hybrids or electric etc, then the administration needs to ensure that the infrastructre is or will be in place before money is poured into R&D projects that will turn-out new, clean vehicles, but which the public wont buy if there's no way of actually powering them up.

I'm fairly sure that the auto makers already have much of the R&D work completed. Its just a case that most are probably gathering dust after they were shelved after the last anticipated auto industry overhaul. Additionally, R&D investment needs to extend far beyond fuel-type alternatives and should incorporate broader research initiatives that start factoring in other variables such as lighter material composites, alternatives to rubber use and research into fuel-to-wheel ratios etc. The bottom line is, is that there are now, more than ever, three new variables in the auto mix; a need to reduce oil dependancy; a failing economy and a growing environmental consensus. That right there is a blueprint for 'change'.

I personally think that we're at the dawn of a new age of motoring, an age that should be first welcomed by acknowledging the fact that large, sweaty and impractically inefficient SUV type people movers are not the way forward. If you want it, then you should be made to pay for it, and then some, regardless of any petty arguments of liberty and freedom of mobility. You want to drive (and pollute) an off-road vehicle on the roads? then you should pay, both in the showroom and at the pump. Furthermore, I think that you're going to see the implimentation of a lot of these congestion charge scheme proposals being planned for some of the larger US cities pretty soon too.


Last edited by BS.Dos. on Sun Nov 09, 2008 11:23 pm; edited 1 time in total
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Bigfeet



Joined: 29 May 2008
Location: Grrrrr.....

PostPosted: Sun Nov 09, 2008 8:17 pm    Post subject: Reply with quote

Let them die. Throwing money at them will only delay their deaths. They'll use that money in order to close US plants and move them to Mexico faster. American car companies are not competitive and haven't been for decades.
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Poemer



Joined: 20 Sep 2005
Location: Mullae

PostPosted: Sun Nov 09, 2008 8:44 pm    Post subject: Reply with quote

khyber wrote:
Quote:
The more I think about it, this corporations MUST pay healthcare insurance for employees and retirees at inflated prices, the more I think that our entire healthinsurance scam is one of the major factors making U.S. companies extremely uncompetitive in the world market place.

You'd think...but take a look at the first two sentences:

Quote:
It didn't get far because no one could figure out how to make money on low-priced compacts with Ford's high labor costs.
Besides, the automaker was racking up billions in profits by selling pickups and sport utility vehicles. Times were good and gas was cheap.

First, don't those two bolded parts seem incongruous? Their labour prices were too high but they racked up "billions in profits"?

It's pretty clear that a lack of vision and an unwillingness to invest in innovation was the main reason for their downfall.

Seems more to me that they're trying to shift the blame away from their ineptitude.


It is not incongruous, low priced compacts have a much smaller margin on them than higher priced SUV's and Pickups. The high sticker price of pickups allowed the car makers to pay the bills AND still have plenty of money left over.

You are right about the lack of vision though. US automakers basically surrendered certain portions of the auto industry to the Japanese and Korean car makers based on the mistaken belief that there would be more time to shift away from a total reliance on truck sales if necessary. They have been caught with their pants down because Toyata et al have been putting real money and resources into green R&D and are now in a strong position to give consumers what they want. The writing has been on the wall for a while, but Ford and Chevy refused to read it.
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BS.Dos.



Joined: 29 Mar 2007

PostPosted: Sun Nov 09, 2008 9:20 pm    Post subject: Reply with quote

If the US can't compete on cost, then it needs to add value. Plain and simple. It's sink or swim. I think it'd be political suicide to let it sink.
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Tiger Beer



Joined: 07 Feb 2003

PostPosted: Sun Nov 09, 2008 9:28 pm    Post subject: Reply with quote

Can't let it sink...those are American companies and they just need to be competitive. There is a lot of potential money there. They certainly need a very heavy focus and vision and plan.
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Zutronius



Joined: 16 Apr 2007
Location: Suncheon

PostPosted: Sun Nov 09, 2008 9:35 pm    Post subject: Reply with quote

Evolve or die. The big three need to evolve and adapt to change or they will go under. It's a shame it's come to this because they have had some good ideas (EV1) and let them die off. Hopefully they'll learn from their mistakes this time around.
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BS.Dos.



Joined: 29 Mar 2007

PostPosted: Sun Nov 09, 2008 9:37 pm    Post subject: Reply with quote

^^Sure. And one which dovetails with a wider transport policy. Not sure how we describe the current automotive industry, maybe Motoring_V4.2 or something, but if we're to make the shift to V5.0 sometime soon, then the US is well placed to punch well above its weight and deliver this. Afterall, mass production of vehicles was pioneered and mastered in the US. Now, that doesn't mean you're better than everyone else at it, but your auto heritage is second to none. It'd be a shame for a large number of blue-collars if that legacy was squandered.
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sojourner1



Joined: 17 Apr 2007
Location: Where meggi swim and 2 wheeled tractors go sput put chug alugg pug pug

PostPosted: Mon Nov 10, 2008 1:52 am    Post subject: Reply with quote

Like in most other industries, fat asses managing them road a gravy train to nowhere, but personal gain for too long and left nothing for tomorrow. Well tomorrow is just about here and there mediocre work yielded only big financial troubles for the next in line. It happened all across the board in Americas economy. They didn't build value in companies, they built value in their personal bank accounts taking the easiest routes. Go figure.

I say let em' drown as this day and age is high time to restructure and redefine everything; not support the fat asses who got us in this big commingled mess in the 1st place.
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Tiger Beer



Joined: 07 Feb 2003

PostPosted: Mon Nov 10, 2008 2:31 am    Post subject: Reply with quote

I believe DETROIT might be part of OBAMA's economic plan. For example, Gov. Jennifer Granholm and former U.S. Rep. David Bonior are both on Obama's 18-member economic advisory team. He has also been talking to auto leaders in Detroit on how Detroit can be a part of what he wants to use to jumpstart the economy.

I also think it would personally be a HUGE mistake to let the Detroit automobile industry sink (particularly if there is a ton of money being alloted for Wall Street, etc.).

Some interesting things of Detroit, autos and Obama from Obama's website: http://www.barackobama.com/2007/05/07/remarks_of_senator_barack_obam_12.php

There is a lot to this, but here is part of it:

Quote:
We've heard for years that the spiraling cost of health care for retired autoworkers constrains manufacturers from investing in more fuel-efficient technology. We all know the statistic - health care costs currently account for $1,500 of every GM Car. So here's the deal. We'll help to partially defray those health care costs, but only if the manufacturers are willing to invest the savings right back into the production of more fuel-efficient cars and trucks.

This isn't being talked about, but corporations could be MUCH MORE efficient without the health insurance scam going on in America. Anyways...to the rest of the plans...

Quote:
Now it's not enough to only build cars that use less oil - we also have to start moving away from that dirty, dwindling fossil fuel altogether. That's why my second proposal will create a market for clean-burning, home-grown biofuels like ethanol that can replace the oil we use and begin to slow the damage caused by global climate change.

The potential for biofuels in this country is vast. Farmers who grow them know that. Entrepreneurs and fueling station owners who want to sell them know that. Scientists and environmentalists who study the atmosphere know it too.

It's time we produced, sold, and used biofuels all across America - it's time we made them as commonly available as gasoline is now.

I've already done some of this work in the U.S. Senate by helping to provide tax credits to those who want to sell a mix of ethanol and gasoline known as E85 at their fueling stations. And since it only costs $100 per vehicle to install a flexible-fuel tank that can run on biofuels, I've also proposed that we help pay for this transition.

Government should lead the way here. I showed up at this event in a government vehicle that does not have a flexible-fuel tank. When I'm President, I will make sure that every vehicle purchased by the federal government does.

Of course, to truly overcome the lack of a biofuel infrastructure in this country, we need to create a market for the production of more biofuels.

Like the auto industry, the oil industry has generally been resistant to making the transition from petroleum to biofuels - with some even trying to block the installation of E85 pumps at fueling stations.


Come to think of it, if we invest in these other fuels and make them available nationwide, perhaps Americans could still drive those big tanks around if they really chose to do so. Technically, anyways.
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Milwaukiedave



Joined: 02 Oct 2004
Location: Goseong

PostPosted: Mon Nov 10, 2008 3:06 am    Post subject: Reply with quote

Haven't we been down this road before?

Chrysler's Crisis Bailout 1979

In all fairness, they did pay the government back.
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mindmetoo



Joined: 02 Feb 2004

PostPosted: Mon Nov 10, 2008 4:13 am    Post subject: Reply with quote

bacasper wrote:
mindmetoo wrote:
bacasper wrote:
khyber wrote:
I just don't get it. America HAS some of the greatest engineering minds in the world; it's fair to guess that Ford has a least a couple of those. If they can't design a decent affordable efficient car what that says to me is that they are a company that has given up: Why give them money...

It's not that they CAN'T design one, they just refuse to for the same reasons automakers and the oil companies sabotaged the public transportation infrastructure in the last century: they need to keep the American public guzzling and paying for gas at the highes rates possible.


No. Now you're getting your information from Roger Rabbit? Geez.

Well, if it isn't the status quo's leading apologist.

Rolling Eyes


At least I back my words with peer reviewed research. I just don't make crap up.
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khyber



Joined: 16 Jan 2003
Location: Compunction Junction

PostPosted: Mon Nov 10, 2008 8:47 am    Post subject: Reply with quote

Hey, I'm ALL for seeing the American auto industry succeed. But clearly, the people who've been in charge over the last 10 years are not the people to do it.

I think what so many industries (and politics) in America need is for the people in charge to STFU and start actually doing things to secure their society. The last 8 years seems to have been nothing but lipservice. I mean no disrespect to Americans here but are there industries in the US that have shown meaningful growth over the last 8 years (besides the housing market)?
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mises



Joined: 05 Nov 2007
Location: retired

PostPosted: Mon Nov 10, 2008 9:35 am    Post subject: Reply with quote

IlIlNine wrote:
The amusing thing is that Ford of Europe has a lot of efficient, well regarded cars on the market... with engine options that are not available to north america. They have the know-how, all the engineering has been done, all that would be required is a re-tooling of their north american plants and they could at least start selling SOMETHING resembling a quality car relatively soon...

If they do something like this remains to be seen...

But I predict that it will be companies in China and perhaps TaTa (indian) that will enter the US marketplace and absolutely clean up with cheap cars.


This is very true. The American car firms have a "two fleet" policy. Seems strange, but it is true.

Single payer health insurance is needed for these large high-value added firms to stay competitive with Europe and Asia.
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some waygug-in



Joined: 25 Jan 2003

PostPosted: Mon Nov 10, 2008 3:19 pm    Post subject: Reply with quote

I think the big thing that North American Auto makers have to deal with is the cost of labor. The old style union vs management system will not be profitable in the coming years.

They will have to find ways to enable employees to share in profits of the company, other than - higher wages, more union dues, etc.

Some kind of employee share program in exchange for wage cuts are probably the only way they can survive.
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