Crap sandwich. I don't support it, but maybe they'll wring enough concessions that it'll not be so great. At the same time, the big 3 collapsing would be kicking the upper Midwest in the ribs while it's still relatively down.
You might as well take the money and burn it. At least then you could warm yourself in front of the fire. If they get any money (which I believe they will), the big three will immediately become the big two. Cerberus will dump Chrysler before the ink dries. Ford and GM must cut their legacy costs to zero and cut production capacity by 50%. I do not see the management teams and union representatives having the courage to take such drastic measures. Don't get me wrong, I do not want to see them fail because it is going to devastate Michigan, Ohio, and Indiana. Just think of the three huge Chrysler transmission plants in Kokomo, IN right next to the Delphi plant which is already in bankruptcy.
I had this question asked to me yesterday. "Why did you buy a Hyundai?" The person asking assumed it was because the cars are relatively cheap. My answer was that I didn't trust the quality of the Big 3. Gas mileage and reliability are not the strong suits of Big 3 made cars. I truly believe this is why they are in the tank right now. The Honda plants in Ohio flourish while the Big 3 plants are nearing closing.
With or without a bailout, we'll pay for it. Either a direct bailout or they declare bankruptcy and the Fed takes over the pensions.... No way to avoid serious hurt.
"Back in the early '80s, while GM president Roger Smith fell in love with the idea of automating workers out of car factories, Toyota and others focused on refining their production techniques and produced much higher quality cars. Customers left GM's brands en masse. The company's market share has fallen from a high of just over 50 percent in 1962 to around 23 percent in 2007. In recent times, the quality gap has narrowed considerably but "perception trails reality," commented Cole. Getting those customers back would require a herculean effort. Vehicle's like GM's very first attempt at a crossover—the sub-par 2001 Aztec—didn't help. Cars like that left customers will little incentive to return."
I remember having this argument with Rich and Dave, where I was pushing the "Detroit's closed the gap" meme. It doesn't have a lot of purchase with the middle-class; interesting, that.
6 comments:
Crap sandwich. I don't support it, but maybe they'll wring enough concessions that it'll not be so great. At the same time, the big 3 collapsing would be kicking the upper Midwest in the ribs while it's still relatively down.
You might as well take the money and burn it. At least then you could warm yourself in front of the fire. If they get any money (which I believe they will), the big three will immediately become the big two. Cerberus will dump Chrysler before the ink dries. Ford and GM must cut their legacy costs to zero and cut production capacity by 50%. I do not see the management teams and union representatives having the courage to take such drastic measures. Don't get me wrong, I do not want to see them fail because it is going to devastate Michigan, Ohio, and Indiana. Just think of the three huge Chrysler transmission plants in Kokomo, IN right next to the Delphi plant which is already in bankruptcy.
It's worth noting that of all of us in the Taylor group + alumni, only three own a Big 3 vehicle. (unless things have changed.)
Jim,
I had this question asked to me yesterday. "Why did you buy a Hyundai?" The person asking assumed it was because the cars are relatively cheap. My answer was that I didn't trust the quality of the Big 3. Gas mileage and reliability are not the strong suits of Big 3 made cars. I truly believe this is why they are in the tank right now. The Honda plants in Ohio flourish while the Big 3 plants are nearing closing.
With or without a bailout, we'll pay for it. Either a direct bailout or they declare bankruptcy and the Fed takes over the pensions.... No way to avoid serious hurt.
Gotta love the UAW.
"Back in the early '80s, while GM president Roger Smith fell in love with the idea of automating workers out of car factories, Toyota and others focused on refining their production techniques and produced much higher quality cars. Customers left GM's brands en masse. The company's market share has fallen from a high of just over 50 percent in 1962 to around 23 percent in 2007. In recent times, the quality gap has narrowed considerably but "perception trails reality," commented Cole. Getting those customers back would require a herculean effort. Vehicle's like GM's very first attempt at a crossover—the sub-par 2001 Aztec—didn't help. Cars like that left customers will little incentive to return."
http://www.popularmechanics.com/automotive/new_cars/4292379.html
I remember having this argument with Rich and Dave, where I was pushing the "Detroit's closed the gap" meme. It doesn't have a lot of purchase with the middle-class; interesting, that.
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