Only 50% for the Big 3...

[jeepkid]

Yep, the big three only walked away with 5 out of 10 of the biggest car flops in the last 25 years...I would've thought it'd be more...

http://autos.yahoo.com/articles/auto...RvLWZsb3BzLTI1

[stealthycat II]

and they mismanaged themselves into bankruptcy ...... imagine if they'd actually had a good internal business structure what they'd be?

[Champlain Islander]

GM used to be one of the most highly admired companies in the nation or the world for that matter. Their stock was part of almost everyone"™s portfolio. Now their new mission statement goes something like this. Beg the government to keep the money rolling in then eliminate loyal dealerships to lower consumer choice which removes competition to keep prices high. The brain trust that thought that one up must be in line for a record bonus this year. This upside down government which now is dabbling in auto company ownership actually isn"™t opposing this idea. It falls right in line with their current philosophy of allowing the top to grow at the expense of the middle level and worker bees.

[Alsatian]

ORIGINAL: Champlain Islander

GM used to be one of the most highly admired companies in the nation or the world for that matter. Their stock was part of almost everyone"™s portfolio. Now their new mission statement goes something like this. Beg the government to keep the money rolling in then eliminate loyal dealerships to lower consumer choice which removes competition to keep prices high. The brain trust that thought that one up must be in line for a record bonus this year. This upside down government which now is dabbling in auto company ownership actually isn"™t opposing this idea. It falls right in line with their current philosophy of allowing the top to grow at the expense of the middle level and worker bees.

And I don't think it is going to work. What I happen to believe is that the failings and weakness of the US car business is compounded of two fatal flaws of thinking.

#1 Detroit wants us all to buy a new car, drive it 20,000 mile a year, dump the car after we have paid off the 4 year note on the car, and buy another new car that is brighter, shinier, and has newer bells and whistles than the 4-year old car. This is a marvellous business model for keeping revenues flowing for Detroit. The flaw is people may not wish to piss away their money in this way. I'm thinking as cars have gotten more expensive (my first house -- 900 square foot -- cost $20,000 in 1988, less than most decent family cars today) and as average real incomes have shrunk, this business model has become unviable. A corollary to this fatal flaw is the business model of earning 75% of one's profit from post-sales maintenance and service at dealerships. Same deal -- people get tired of getting reamed by dealers and constantly repairing their unreliable US automobiles.

#2 Mindful of #1 above, make a car that is fundamentally unreliable in the long haul -- over 100,000 miles -- price it the same as the foreign competition, and spend the difference on (a) excessive, uncompetitive wages and benefits for unskilled factory workers and on (b) excessive, uncompetitive salary and benefits for brain-dead upper level management.

[Champlain Islander]

Need a job? Sounds like you see it pretty clearly. Now.... with less dealerships it will be easier for the consumer to buy their vehicles.?????? I hope that isn't the strong point of their future plans.

Pretty much everyone is pissed off at AIG for bilking money out of the government then doing the socially irresponsible thing of giving huge executive bonuses and holding meetings at expensive private resorts.

Seeing how well they pulled that one off the car manufacturers bilked money out of the government then did the socially irresponsible thing of cutting dealerships, which didn"™t cost them anything, to keep consumers from having choice and using competition to keep prices down.

[Knightia]

I rememeber a few odd units from the pastthat prob soldquit a few unitsso would be considered a hit maybe- like AMC- pacers & gremlins& Le car? Course the companys no longer around.

But yep in general ppls income &new cars prices didnt stay equal- and the makers had to to keep comeing up with new ways & programs & longer & longer bank loans just to sell there products-one could see that would cause problems yrs & yrs ago .
But i have seen ppl who have lived in crap housing& the slums even - who just had to have there fancy trucks & cars no matter what. Didnt make much sense to me then or now.

The mates father worked at chevy in tonawanda for 25+ yrs & never bought a new car or a chevy in his life.

[Knightia]

He didnt get to retire early from chevy either tho, because he didnt buy his own or anyones elses new cars. He dieded prematurely at abount56 of a brain tumor.
But his wife did get to collect lotsa money & bennys from Gm for quite a few yrs i believe.