Comments on: Detroit’s Troubles Shall Pass

By: brotherpeacemaker

brotherpeacemaker — Thu, 27 Nov 2008 22:33:59 +0000

Thanks for the feedback profunksticated,

I think we’ve all had bad experience with the domestic car manufacturers and their products. The funny thing is I know that many of us have had the same shoddy experience from the foreign car dealerships. We’re a lot more willing to forgive the foreign car dealers because of their superior products.

Peace

By: profunksticated

profunksticated — Wed, 26 Nov 2008 20:57:15 +0000

Well put. Here’s my experience with GM’s so-called gold standard, the Cadillac.

http://profunksticated.blogsome.com/2008/11/11/pro-to-general-motors-drop-dead/

By: mike lovell

mike lovell — Wed, 19 Nov 2008 15:55:19 +0000

I think you and I agree here. I believe it may be the only way for them to ever survive well into the future, domestically speaking anyways.
Rearranging the some of the duties, not just division of labor, but division of essence, to create more value-creating positions, instead of the dead end responsibilities that so many of the jobs hold within the organization, might be one way to look at things.

By: brotherpeacemaker

brotherpeacemaker — Tue, 18 Nov 2008 20:50:26 +0000

Thanks for the feedback mike lovell,

I’ve actually given this a little more thought with your comment. It appears that the business model the domestics have built for themselves is simply too unsustainable. The domestics can make money in Europe, but do nothing but bleed red ink at home. Personally, I think they should go into bankruptcy, downsize the hell out of themselves, get their act together, and then try to come back.

Peace

By: mike lovell

mike lovell — Tue, 18 Nov 2008 15:03:29 +0000

I used to own an Oldsmobile…one of the best cars I ever owned, prior to this most recent one (of course 1 payment into it, its too early to tell how that’ll pan out). One of the better selling GM models, that required the least amount of work…no wonder GM retired the line…the mechanics weren’t getting enough work, and the turnaround to buy a new one was spread out too much.

While I am not a big fan of Unions in their present form, they did have their day of necessity. And with union workers getting the deals they got, the only ones to blame for that really are the automobile manufacturers. The $25 billion the Big Three are begging for at this point will not increase their bottom line, but for the most part merely cover those legacy costs already promised. I heard somewhere that those legacy costs are also insured by the government, at least the pension portion of it all, but I couldn’t source it to be sure.
And with the overall public demand for smaller, more economical “green-friendly” cars, they have yet to figure out how to make them and have competitive costs cover their expenses. What is the solution to that? I really don’t know. I don’t know if anyone really does at this point. As you pointed out, the foreign automakers don’t have the legqacy costs that American auotmakers have to cover, but there has to be some way to figure it out. And as has gone on so far, you can be sure that the Union isn’t going to allow their pay scale to be reduced, despite the fact that it is well above the national income earner’s average, WITHOUT the benefits packages.
Good or bad, we can’t deny that we live in interesting times. Hopefully though, somewhere in here we can find the solution that will make American automakers a profitable and competitive force, without government subsidies keeping them afloat.