Posted on 11/20/2008 4:39:41 AM PST by kellynla
Detroit depended largely on SUVs for sales and profits for many years. But those vehicles were very popular, and there was very little competition from foreign automakers.
In 2002, General Motors sold more than 2.8 million light trucks including 1.2 million SUVs. That was an increase of 6.2% from the year earlier. That same year, GM sold 2.3 million cars, a drop of almost 9% from the previous year.
When gas prices spiked in 2007, buyers suddenly shifted to smaller cars. That was quickly followed by an economic crisis that drove down sales of all types of vehicles. But trucks remain an important part of Detroit automakers' product strategies. Even with marker share for cars increasing, GM sold more trucks than cars in October
(Excerpt) Read more at money.cnn.com ...
Title should read 6 parts. Still early here & I need another cup of Java. LOL
They don’t need any bailout. Cut and cap all executive pay at $300,000 or less until they become profitable. Then watch profitability increase. They already know what they have to do. There is presently just no incentive to do it.
This guy lost me on number 5, the unions.
The unions have basically told these people go blow. when it comes to “giving up”.
The big three should bankrupt and move to a right to work state without Grandholm strangling the state as well.
Wait, why just the executives?
Bring down the base benefits for All workers. Including the “six weeks off” for retooling in the summer. Don’t pay them.
Then we talk.
...
Listening to wmal am 630 in VA yesterday, the union rep said somewhere (I came in at the end of the story) that “concessions of any kind were out of the question.” Let them starve like the welfare begging bums that they are.
>>Listening to wmal am 630 in VA yesterday, the union rep said somewhere (I came in at the end of the story) that “concessions of any kind were out of the question.” Let them starve like the welfare begging bums that they are.<<
Exactly!!!!
Even this article says it, it’s not the wages, it’s the benes.
Cut the benes. Vacations back to two weeks, Priciest BC, down to the HMO, matching funds, summers for retooling, GONE!
Make them work like the rest of us grunts. All of them. My BIL has been a GM engineer since High School. Makes fine money and good for him, but why should he be the ONLY one giving up.
Screw the lot of them. Let them file bankruptcy and move.
Health benefits for retirees are a big part of this equation. How many employers could afford to pay for full health care benefits for retired workers? After all, the retired workers aren’t contributing anything towards the bottom line of these companies except in a negative way. Several American steel companies ended up going out of business because they had to pay for similar benefit packages for their retirees. Foreign companies aren’t saddled with the same sort of obligations, which is why they are more competitive.
However, regardless of why the auto makers are in trouble, it is not the taxpayers’ responsibility to bail them out. And if we do bail them out, which industry will step forward next for handouts? Corporate welfare is just as bad as welfare payments to individuals.
Profitability was a big part of what got them in this. Large cars were what they were making money at, people were buying them, and they were the only vehicles that could be padded enough to cover the UAW's demands. The big three were making cars and trucks that covered both bases, made money and people were buying them. How is this a bad model to follow while you try to restructure like Gm and Ford were doing before the s*** hit the fan?
When the oil prices shot through the roof many people expected what has happened to occur, it was a bubble and it was going to burst. The problem is it happened coupled with the stock crash and money constraints all at the same time.
I am not saying that the execs aren't to blame, they have done some dumb-assed things too, but the major problems are the unions and the contracts negotiated years before most of these guys ever saw the inside of an office.
I am a supplier to these guys, lived most of my life in the Detroit suburbs and just about everyone I knew growing up was tied into the auto industry one way or another.
Not a single person, not one, that I knew had anything good to say about the unions and could have told you 20+ years ago this outcome of bankruptcy was going to come over the pensions and healthcare without a major concession by the unions, it was etched in stone.
The citizens
Detroit, day or night is it as dangerous as everyone says it is? What are the areas to avoid?/Just Asking - seoul62.....
The union leadership have lost interest in the workers. If the workers all get laid off, the union guys can still cash in.
Interesting article for a quick summary. BUT...Is it just me (it’s early here) or is this article full of mistakes such as incorrect words and grammar? Makes me question the reliability of any of the facts as stated.
Yes, especially at night. I have seen cops drive by a car being stripped right on the side of Davison ave. and not even bother to stop during the morning rush.
If you are right downtown during the day you will be okay, just don’t dress or act like you have money and always be aware of what is going on around you is all I can say. If you find yourself in the Cass Corridor at night then I recommend you get the hell out ASAP, especially if you are white.
Detroit never really understood the baby boom market, nor did they ever make any serious attempt to do so. In the 1960’s and 1970’s, when boomers wanted reliable, good handling, economical cars, Detroit made gas guzzling, expensive, unreliable, floating boats. Germany and Japan stole the market, and gained brand loyalty that they still have from boomers. When Detroit did deign to make economical cars, they were junk. (pinto, etc.)
When boomers got jobs, and wanted something more upscale, Germany and Japan was there with Mercedes, BMW, Lexis, Infinity, etc, and Detroit was still making junk.
Now they want us to bail them out, and they still aren’t giving the baby boomers what we want. I will admit, that, for a time, they stumbled into the SUV market, but even that was successfully invaded by foreign companies. How can any company do business when it ignores a market that is 70 million strong?
BTW, I have a Chrysler, you buy American nuts can get off my back. But it is the first American brand I have bought since my piece of crap 1975 Camaro.
Agreed.
And it's also not our responsibility to bail out risky loan makers and derivative gamblers.
No automaker bailout? Then rescind the AIG/FM/FM/banking bailouts. Now.
What’s really killing Detroit? There’s only three parts, and they’re all Democrats:
U, and A, and W.
A retired autoworker called Rush the other day. Guy was 57 and had been retired for 2.5 years. He was complaining the the pension really wasn’t that big and he had to go out and get a part time job.
Age 55, retired with a pension and paid health care benefits.
How many regular Dick or Janes can retire at 55 with a pension and health care benefits?
US Military, retire in the 40’s, pension and med benefits. :)
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