Posted on 11/21/2008 11:05:08 AM PST by thetru
Who killed the U.S. auto industry? To hear the media tell it, arrogant corporate chiefs failed to foresee the demand for small, fuel-efficient cars and made gas-guzzling road-hog SUVs no one wanted, while the clever, far-sighted Japanese, Germans and Koreans prepared and built for the future.
I dissent. What killed Detroit was Washington, the government of the United States, politicians, journalists and muckrakers who have long harbored a deep animus against the manufacturing class that ran the smokestack industries that won World War II.
As far back as the 1950s,
(Excerpt) Read more at worldnetdaily.com ...
**What killed Detroit... **
1/3 US GOVT
2/3 UAW
I guess it could go either way...
Don’t remember the Author, but there is a Book out titled “What would General Motors Be Without the UAW ... PROFITABLE”
Just at a time when the ‘false economy’ we’ve have, needs to be replaced with producing more capital goods than we consume, the ‘progressives’ hate for corporations takes center stage!
I find it interesting that congress whines that the ripple effect of closing these plants would harm so many, yet they didn’t care about the ripple effect when they closed military bases all across America.
Nancy and Barney will be designing the new cars from now on.
See also Brock Yates’ “The War Against the Automobile”
There is a class of people out there who hate cars and all they stand for: Freedom, Mobility, Escape from Government Control...
First the EPA and then the 1968 “Automotive Safety Act” sought to put restrictions on automobiles that could not be met: they never dreamt that their draconian emissions standards would be met and even exceeded.
So now they’re going to define CO2 as a pollutant...
That’s AJ stuff, your gonna get burned.
Oh Pat you are such a dope.
Union contracts, poor quality products, crappy management and having fleets of giganto vehicles in their production lines when gas hit $4.00 a gallon killed the big 3.
I’m sure there are more.
The foreign brands have to deal with the same government garbage as the big 3 and they aren’t dying.
Yep, and if we tapped their butts we could run this country for an eternity.
“”To hear the media tell it, arrogant corporate chiefs failed to foresee the demand for small, fuel-efficient cars and made gas-guzzling road-hog SUVs no one wanted, while the clever, far-sighted Japanese, Germans and Koreans prepared and built for the future.””
Well if the “media” says it, it must be false!
BTW, I heard the Unions and the Media caused Germany to invade Poland.
How many Congresscritters have ever run a successful business, let alone a car company?
What kind of car was Pat driving when he started his first of many failed attempts to run for president??
>> [Those] who have long harbored a deep animus against the manufacturing class that ran the smokestack industries that won World War II.
Damn straight!
“The foreign brands have to deal with the same government garbage”
You see, if the foreigners fail, it’s socialism. If they succeed, there is an imaginary construct of freedom.
You can’t win with these guys. They listen to Limbaugh rant against unions then charge people as class warriors who think executive bonuses should not be benefited by government bailouts. They see no conflict.
The typical UAW worker doesn't care if the seal he's putting in is supposed to last 5 years or costs $1 more and is supposed to last 15 years. The bean counter in the headquarters does and chose the cheaper part which will break sooner.
I would add that a passive management that was willing to live with an uncompetitive situation played a key role. For decades, everyone involved with the US auto industry has been perfectly well aware of the cost disadvantages that they have been opperating with. However, the management has been very willing to not rock the boat to fix the fundamental problem, but instead focus on the the higher profit margin models, and trade declining market share for short term profits. Each generation of executives has been willing to kick the can down the road for the next generation to deal with.
However, even with all of the onerous regulations in place, some of which should probably be repealed or re-examined, foreign car companies not only profit but also hire US workers to build their products right here in this country.
Clearly, the US government is not responsible for "killing the auto industry."
They wouldn’t be in business at all if no one bought their hyper-expensive, gas-guzling SUV’s.
Globalization.
what killed the auto industry was the feeling that they could do whatever they want knowing that the govt would always be there to bail them out since they were too important to fail.
Aren’t we talking about cars made in Michigan? I understand car factories in the south are doing well.
“Who killed the U.S. auto industry?”
The auto industry is not killed as those outside of the UAW run Detroit are making money and selling cars.
Who killed Detroit is the question and the answer is the UAW and the Government approximately 75% and 25%.
michigan is not a right to work state. That’s the problem.
We don’t want any subsidies or bailouts at all.
What the foreign auto makers have for huge advantage is the fact that most of their profits go back into their own country's economy, making it easier to produce good auto relatively cheaply. Not so with American autos makers, who have been dealing with massively unfair trade, tax, and expense/profit practices for decades. I drive a 2001 Buick LeSabre, smooth, strong, quiet, comfortable, and it gets over 30 mpg highway, and about 20 mpg overall. Good or better than any Toyota. Our stuff is just about as good as the imports now, and has been for awhile. BTW, the foreign brands do not have to deal with the same "government" garbage as the US auto makers, that's just plain wrong.
the Big 3 is like another freddie mac. Privatized profits and socialized risks just doesn’t work.
Dissent is patriotic.
Umm, last I checked the (Formerly) Big Three were getting their asses kicked by automobiles manufactured in the United States.
After ten years and $5 billion:
The new urine processor assembly aboard the international space station, a key component in a water recycling system needed to convert urine and condensate into drinking water, was re-activated early today after problems Thursday. The processor operated for about two hours and then shut itself down again. Engineers are troubleshooting error messages
www.spaceflightnow.com
Congress had a hand in this.
I will be keeping my 4WD shortbox Republican Victory Red Chevy V8 Pick Up truck. Its paid for, and can haul a$$ anywhere on the continent.
The rest of the socialist A$$ Hats can GTH.
All hat and no cattle.Soon they will be hiring civil servats to wipe their sorry derrieres as well.
My son, was talking about a new energy policy , he lives in Japan, where they have one, 30% nuclear, 30% oil, 30% coal. 10% hydro. The country runs like a clock.
I told my son," What makes you think we will have an energy policy in the USA? Its all ideology thats driving no decisions.The Dems have controlled congress for two years and haven't implimented an energy policy. That keeps the lobbyists paying.... Thats our energy policy."
We have no leadership in our nation today. Cowards all.
It's a combination of the UAW stranglehold and government policies. It costs the Big 3 $2000 more per vehicle to build it than the foreign makers. This means they had to build bigger, more expensive vehicles (trucks, SUVs) in order to make any sort of profit. The government then places CAFE burdens on them FORCING them to devote resources to build smaller fleets of vehicles (which they cannot make money on due to their labor obligations). Their specialty is thus Trucks,SUVs because that's where they made their money. Fuel prices skyrocket, causing consumers to buy smaller vehicles and stop buying trucks and ergo, they have money problems.
It's really simple...the UAW and government policies...both in bed with Democrats...caused the Big 3 to fail. Of course, Republicans get the blame because Bush is the President...just like the mortgage crisis and Fannie/Freddie. The Democratic Party is a cancer on this nation.
Who kills or destroys most everything? GOVERNMENT!
The same CAFE standards also apply to foreign car companies and because of their better management they are not in the same state that the Big 3 currently find themselves. As you've shown, the Big 3 have no one to blame but themselves.
Pat does a good job ticking off the bullet-points. The Net Effect is that Auto Execs do not control, nor can they reasonably forsee many of the factors that affect the profitability (future) of their business. And with every new government mandate that level of control drops incrementally.
One US Auto exec lamented in a congressional hearing that “if I knew the price of gasoline in 5 years time, my job would be so much easier.” That is just ONE factor that is largely out of their control, but 5 years is roughly the time it takes to move a car design from concept to production.
It’s only going to get worse with the government will start exercising direct influence over managerial decisions at the Big 3.
The same CAFE standards, but they don't have the $2000+ burden per car that the Big 3 have. The Big 3 would make a profit, too, if they didn't have that albatross on their necks. Without CAFE, the Big 3 could've been banking cash in the 1990s and 2000s by focusing on vehicles people wanted, rather than building a special fleet of small cars (which they lost money on) just to meet those standards. You can't really blame current management, these labor agreements go back decades.
Sure I can. Management should have declared bankruptcy so that it could get out of these labor agreements. Besides, it was the management that gave away the store to the unions. Perhaps it should have realized that such concessions to the union were ultimately unprofitable.
Theoretically, yes. But who wants to be remembered for quitting?
Nardelli and Mulally have only been around a year or two. The management of all the Big 3 negotiated and restructured much better deals in the last contract that will make them almost on par with the foreign automakers. The new deals take effect in 2010. Those need to be fast-tracked. Traditional bankruptcy means the end for these companies. A more targeted, short term bankruptcy with all parties agreeing beforehand to the necessary cuts may be plausible.
UAW.
Crush the UAW and each member and you will see a resurgence in US Auto Making.
No. There's a reason its called a collective bargaining agreement. The big three's sackless management agreed to the UAW's demands. They should have had the foresight to take care of this problem while they still had the means to ride out the inevitable strike.
Pat is more right on these issues than for example Bush trade policies. Go back to the article. The imports of early years are not those of today. Basically they were bargain basement junk made at very low wages and imported. France never apologized for the Renault which was one of the worst.
In the mean time federal government was the unions best friend and along with state closed shop laws tied the Big 3's hands. When the foreign owners finally began setting up manufacturing in the USA some things had changed. First thing was they built in non closed shop states meaning the south and were non union. The people in these states unlike the UAW workers in the north welcomed and worked with the companies by not demanding unrealistic wages. It was a win win for both company and worker. It was only then though with the cars made in USA that they had to come up to US safety standards and EPA. EPA and government have not helped the BIG 3. BTW there is still a big demand for larger vehicles as in some cases that is what the buyer needs. The smaller foreign owned can not meet that demand or rather won't.
PJB is right on many trade issues and it was a dumb move on Bush's part to exclude Conservatives like him from at least having advisory positions. But Bush never has been interested in that. He is simply serving corporate masters who's interest lie outside that of the USA.
The big 3 need to bust the unions. That would be a first. True labor unions should consist of actual workers from within a company. Many labor union leaders never worked in a plant a day in their lives. Union members need to come to terms with reality and realize that a livable and honest wage for their labor means more persons work and likely JOB SECURITY FOR ALL. Labor Unions in many places have become far worse than the abusive employers they were originally formed to deal with. For example no man who can not afford a strike and has to feed his family should get threatened or the crap beat out of him for crossing a picket line.
He is simply serving corporate masters who’s interest lie outside that of the USA.(They want to bring down America)
Next, Washington imposed a corporate tax rate of 35 percent, raking off another 15 percent of autoworkers’ wages in Social Security payroll taxes
State governments imposed income and sales taxes, and local governments property taxes to subsidize services and schools.
Greed on three sides {Union, government, management} is killing the U.S. automotive industry. None want to give in an inch but all three want to give themselves OUR money.
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