The U.S. Auto Industry and the Ripple Effect (Video)

[ctrlraven]

http://www.youtube.com/watch?v=72cHfOKoA1c
72cHfOKoA1c

[vonirkinshtine]

I still think the root of all this is CRAPPY U.S. CARS! Maybe the crappy quality comes from not enough money devoted to R&D and engineering because it's being wasted elsewhere? All I know is, if they had a product that people wanted, they would be getting money, and we would not have a problem. I HATE THAT THE FRIGGING GOVERNMENT WILL PUT A BANDAID ON ANYTHING WITHOUT KNOWING WHY ITS BLEEDING TO BEGIN WITH! Can we not look at why no one wants to buy a Chevy, Ford, or Chrystler product?????? I firmly beilve that's the root cause. Give the bailout money to R&D and engineering. Let's make cars that will beat the offerings from Toyota, Honda, Mazda, BMW, Hundai, etc.

[MERCMAN]

Does anyone recall what happened when the steel manufacturing companies went belly up? The railroad industry? No bailouts for them. Jobs were lost, communities were plagued with unemployment and loss of tax base. The economy recovered from those blows because it had to. US steel companies tightened their belts and retooled to compete with cheaper steel from other companies. The Big 3 need to do the same IMHO.

[Bluerauder]

Interesting video but it pre-supposes that without the $25 Billion bailout, the US Auto industry will collapse. I don't believe it ... not unless the Board, CEO and leadership at all three automakers have given up. Ain't that why they get paid the big bucks? This train has been headed for a wreck for the past 10 years or more. Beancounters have been driving the train. Unions bear a large part in the responsibility for this too by driving auto prices for domestics above the competitive range.

Last week Ford Motor Company did not want to join in on the bailout -- as I recall, they turned down GM's offer to participate. What happened? Seems that they thought that they could weather the storm without the bailout and appeared to be in a better position than GM or Chrysler. What happened? Maybe they didn't want to miss out on the gravy train if Uncle Sam was gonna donate $25 Billion.

If the auto industry tanks because of the current leadership, policies, business plan, and strategic marketing strategy .... then maybe it should. Hopefully, a new and better model will rise in its wake without all of the current detriments to quality, ingenuity, and innovation.

[KillJoy]

Does anyone recall what happened when the steel manufacturing companies went belly up? The railroad industry? No bailouts for them. Jobs were lost, communities were plagued with unemployment and loss of tax base. The economy recovered from those blows because it had to. US steel companies tightened their belts and retooled to compete with cheaper steel from other companies. The Big 3 need to do the same IMHO.


TRUTH!

:up:

KillJoy

[dpotter]

One word....UNION. Bargained labor has driven the price of the end product far beyond the value. I saw a quote last week that each GM vehicle is burdened with $1,500+ of employee benefits while Honda, Toyota, etc manufactured in America albeit with non-bargained labor, were in the $110 per vehicle range for employee benefits. Do the math.

[TAKEDOWN]

Ripple effect is scary, but I do agree with MERCMAN.

[Leadfoot281]

..... Hopefully, a new and better model will rise in its wake without all of the current detriments to quality, ingenuity, and innovation.

It's gonna take one hell of a capitalist to kick start a new auto company if the big three disappear.

On a smaller scale, How many new motorcycle manufacturers have come and gone in the last 50 years?

Who else has tried to start manufacturing American electronics/TV's ect ?

I think that once these car companys are gone, they'll stay that way. Right now they can't compete with their labor rates.

[Haggis]

There is a song I remember that puts this all in prospective; help me out here Dom.


"We're turning Japanese, we're turning Japenese."

[Bluerauder]

It's gonna take one hell of a capitalist to kick start a new auto company if the big three disappear.
I am putting a downpayment on a 2010 Tucker..... in blue, of course. ;)

[Mike Poore]

Interesting that the Video was produced by GM:

http://www.thetruthaboutcars.com/business-week-slams-gmfactsandfictioncom/

Not all in the business world bought it.

[Bigdogjim]

Does anyone recall what happened when the steel manufacturing companies went belly up? The railroad industry? No bailouts for them. Jobs were lost, communities were plagued with unemployment and loss of tax base. The economy recovered from those blows because it had to. US steel companies tightened their belts and retooled to compete with cheaper steel from other companies. The Big 3 need to do the same IMHO.

For steel we now pay the price. INPORTS=more money lost overseas!

Railraods= not as large a scale as autos when you add in suppliers.