Comments on: America’s Two Auto Industries

By: m1ek

m1ek — Wed, 12 Nov 2008 14:43:35 +0000

Oh, and the idea that GM couldn’t see this coming a long time ago is ludicrous too. They, and to a lesser extent Ford, actively fought against CAFE and generated loopholes and tax preferences for the monster SUVs that enrich the people who are trying to kill us (and succeeded in one notable instance). To me, it’s borderline treason to keep pushing those vehicles knowing what they do to our environment and our security, yet even today, even after $4.00 gas, they’re still doing it.

By: m1ek

m1ek — Wed, 12 Nov 2008 14:41:04 +0000

AutoIndustryInsider is a shill, folks. There’s a reason people interested in reliability don’t accept anectdotal reports or jokes like the JD Power survey and instead rely on reports with large sample sizes like the ones CR does – and there is still a large gap between GM, at least, and Toyota and Honda. (Ford, they mention in the most recent issue, has made admirable strides and now has quite a few models which can be expected to at least be decent on this metric).

If GM made small cars that were as good as the Civic and Corolla, they would at least be losing a lot LESS money than they are now with the ridiculous Cobalt and offensive Aveo (a small car that actually doesn’t even get very good mileage) simply because they could charge a comparative premium, as the Civic and Corolla do. To believe that their woes are due to their cost structure is to fall for a red herring.

By: freddie

freddie — Wed, 12 Nov 2008 13:18:54 +0000

Auto Industry Insider:

I’m not sure what the point of your comment is. Are you for the bailout? Are you arguing that we should feel sorry for GM because they produce worse cars, both in design and quality, than Honda? Honda’s management clearly has the “big brass balls” to steer their company in the right direction.

By: enoriverbend

enoriverbend — Tue, 11 Nov 2008 19:03:46 +0000

@BG (November 11th, 2008 at 6:05 am )

“Regardless of whether GM/Ford/Chrysler file bankrupcy, I will continue to buy American. ”

Me too. In fact, I bought my last pickup truck from the closest American pickup truck factory — the Toyota factory in Indiana. I suppose my next one might be from the Republic of Texas, though.

By: Dr. Kenneth Noisewater

Dr. Kenneth Noisewater — Tue, 11 Nov 2008 18:11:00 +0000

your analysis presupposes that GM is as efficient as Toyota and Honda. Union obligations ossify job titles and processes as well. It’s more than just per hour labor costs.

EXACTLY.. And it’s not just push from above as well when it comes to work practices, Toyota culture rewards workers for finding efficiencies and better work practices from below, on the line itself… Some improvement found in one plant quickly spreads to all, and in a shop that mandates strict work practices that can’t happen, and Toyota can’t take advantage of those productivity gains, so their business loses out. THIS as much or more than anything else is why they don’t want to become encumbered by UAW.

By: SaneInSF

SaneInSF — Tue, 11 Nov 2008 17:58:08 +0000

Insider – your analysis presupposes that GM is as efficient as Toyota and Honda. Union obligations ossify job titles and processes as well. It’s more than just per hour labor costs.

Also don’t forget the multiplier effect as products move through the “value” chain — what starts as “$510″ (and it’s probably more than that) at the factory increases as people in channel and distribution “take their cut.”

By: DL

DL — Tue, 11 Nov 2008 17:55:20 +0000

Another point to be made:

Every bailout creates political pressure for yet another bailout. It becomes a vicious cycle.

By: Dr. Kenneth Noisewater

Dr. Kenneth Noisewater — Tue, 11 Nov 2008 17:31:26 +0000

Regardless of whether GM/Ford/Chrysler file bankrupcy, I will continue to buy American. You will never see me in a Toyota, Honda or Nissan. So you'll buy an Aveo (built in Ko-rea) before a Honda Accord (built in Marysville, Ohio aka 'Real' America)?? To quote T. J. Watson: THINK.

By: Dr. Kenneth Noisewater

Dr. Kenneth Noisewater — Tue, 11 Nov 2008 17:28:53 +0000

Regardless of whether GM/Ford/Chrysler file bankrupcy, I will continue to buy American. You will never see me in a Toyota, Honda or Nissan.

So you’ll buy an Aveo (built in Ko-rea) before a Honda Accord (built in Marysville, Ohio aka ‘Real’ America)??

http://www.ohio.honda.com/manufacturing/map.cfm

To quote T. J. Watson: THINK.

By: vdhinaka

vdhinaka — Tue, 11 Nov 2008 14:40:55 +0000

The same thing can be applied to Financial Industry also. Why do they want to bailout banks like Wachovia. I know people working there. Most of them are morons. Same thing about Fannie/Freddie. The list goes on…..