The Big Three auto companies certainly deserve blame for some bad management and production decisions. But what many critics and politicians haven’t acknowledged is that the current crisis is much bigger than Detroit and is not primarily a referendum on the quality of American-made automobiles.
Sales of foreign cars are down dramatically, too. For example, Toyota sales dropped 34 percent last month, and it expects to have its first operating loss in 70 years. Canada and Europe are approving multi-billion dollar aid packages for auto manufacturing companies in their countries.
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17 Comments
So many issues here. Like the rest of the manufacturing sector, American auto companies don’t compete on an even playing field. One of the major factors is, American companies furnish health insurance, unlike foreign companies in their home countries. Imagine what universal health care would do for American competitiveness.
Looks like no industry or manufacturer will escape unscathed from the financial collapse the repubs and bush have brought us to.
I think the beer and whiskey industries will do fine.
Not when we put some more sin tax on them!
Clinton fought against more tax on beer; of course it went the other way. Wine got a break and they raised beer tax.
One or two glasses of wine a day are good for you.
You are a proponent of the sugar tax isn’t that right?
No, I’m a proponent of education, Mr Diarrhea. I base my advocacy on knowing people like you who can only learn what they already beleive.
Really?
I didn’t know wine was good for me until 10 years ago.
Did you live in a hole? That’s been known for decades.
Foreign or domestic the car companies is facing the same plight. Many of their customers are like me, I need a new vehicle and feeling the need. But on top of the banks not wanting to loan, I myself do not want to increase my debit-ness due to the employment situation. With my wife’s company cutting back on her hours and my own doing the same. There maybe even a question if either will remain open.
Not a good time to go buying a car.
“Not a good time to go buying a car.”
Then again, it could be a great time. I am seeing some pretty good prices from Toyota for the 8-passenger minivan I’m looking for. Too bad Detroit isn’t interested in my business.
The last two new cars I have bought were American (Ford and Dodge, respectively). We take excellent car of our vehicles, changing fluids, filters, hoses, belts, etc, regularly. We have an SUV with over 270,000 miles on the original motor with no major repairs, a truck with over 150,000 miles, etc. However, our new Ford’s transmission went out 1,000 miles outside warranty. The dealership along with countless letters to Ford simply said we see that a lot. Never will buy a Ford again. Our Dodge was worse. 2006 Dodge Magnum, oil changed every 5,000 miles with Mobile 1 Synthetic complete with dealer receipts, suffered complete and catastrophic (per Davis Moore Dodge) engine failure at 49,000 miles. Cause, sludge. Entirely under warranty. Now in an active lawsuit with Dodge because it does not cover the engine. Way for the American auto companies to stand behind their product. I have always tried to buy American products since I love this cooutry so much. But as for automobiles, never again. I bought a Nissan to replace my Dodge. Hopefully, we receive a favorable outcome in our lawsuit, but doubtful since Dodge stands with over 3,000 active lawsuits against their pathetic product. Bail them out, NO WAY. I would rather pay overspending, ecentric CEOs my money. At least they admit their faults.
New auto demand is down across the board; consumers are concerned about taking on unnecessary new debt in times of uncertain employment. Like Writerdog, I could probably justify a new vehicle, but I don’t know if my income will remain consistent.
XXX is correct, taking health care insurance out of the hands of employers makes them more competitive, and Detroit had that chance… read this excellent article http://www.newyorker.com/archive/2006/08/28/060828fa_fact for the history.
I was at the Carlos Mencia show last week. He asked “why do you think Detroit built all those evil SUVs? Because YOU PEOPLE BOUGHT THEM.” We can blame jet-setting CEOs, organized labor, imports, or planetary alignment, but “business” is in the biz of selling things to willing buyers. Caveat venditor.
You do know that the big 3 do not build every single part of their cars?
Their parts are contracted out to various machine shops and manufactures from all over the world.
It is a wonder as to why would the big 3 have a superior product when it is not an American made part giving a wage to a potential U.S. citizen consumer.
Take away a job from a U.S. citizen and give it a foreigner, the most probable out-come would be the foreigner will spend their money on the interest there in their country and the U.S. citizen will lose their purchasing power simply because they have to take lower wages to make a living doing something else.
Well no wonder that they are having low sells, the consequences of their actions has finally caught up with them.
Report this morning … California will run out of money in two months. And Kansas is tipping that direction. Soup kitchen anyone?
Before Henry Ford became a self-righteous prick he was almost paternalistic toward his employees, and from that came his philosophy that anyone building his cars should be able to afford one. After middle management unilaterally changed working conditions the UAW was successful in organizing Ford; that incensed ol’ Henry to the point he hired Pinkerton “detectives” to infiltrate the union movement, beating and killing organizing workers. With today’s “new hire” wages for UAW workers (about $14-16/hour), it’s unlikely a single-income UAW family could afford to purchase a new mid-line Ford. The Big 3 don’t need Pinkertons; they and their anti-union political cronies have managed to sway public opinion against those who combine their voices to gain more equal footing with those who hold the dollars, the corporations and stockholders.
The primary outcome of “globalization” has been that US workers, unionized or not, are expected to compete in wages and benefits with 3rd world workers, or compete with workers who’s employers receive direct or indirect home country subsidies. As long as the almighty dollar has more weight than the person, this will continue to be the case.
Happy Holidays, as you choose to celebrate them.
Well said, Frank Lingo!
It is amazing how many auto workers, steel workers, and mine workers have lost their livelihood or even their lives in pursuit of mutual bargaining. And yet today we hear so many people protesting against Unions, either from envy of a neighbor making more than they are or because they are a manager and would have to treat workers with dignity.
Happy holidays to all! Thank God for what you and your neighbors have and be willing to fight like hell to keep it!