Posted on 04/03/2009 7:20:55 PM PDT by 2ndDivisionVet
The global financial crisis is suffocating the Detroit automakers, but the problems at General Motors, Ford, and Chrysler have been festering for years—even when the mighty "Big Three" were earning billions. Aging factories, inflexible unions, arrogant executives and shoddy quality have all damaged Detroit. Now, with panicky consumers fleeing showrooms, catastrophe looms:
There will be plenty of business-school case studies analyzing all the automakers' wrong turns. But, as they say in the industry, it all comes down to product. So here are 10 cars that help explain the demise of Detroit: GM and Chrysler need a multibillion-dollar government bailout to survive, and both could be in bankruptcy by summer if they don't meet tough government demands. Ford hasn't asked for a bailout—yet—but it's bleeding cash and racing the clock to turn itself around.
Ford Pinto. This ill-fated subcompact came to epitomize the arrogance of Big Auto. Ford hurried the Pinto to market in the early 1970s to battle cheap imports like the Volkswagen Beetle that were selling for less than $2,000. Initial sales were strong, but quality problems emerged. Then came the infamous safety problems with exploding fuel tanks, which Ford refused to acknowledge. Message: The customer comes last. "The problems for the domestics really started in the '70s when they were offering cars like the Pinto up against higher-tech, better-built Toyota Corollas and Honda Civics," says Jack Nerad of Kelley Blue Book.
(Excerpt) Read more at autos.yahoo.com ...
The Japanese auto companies were somehow able meet our ridiculous environmental laws.
Not sure why GM and Chrysler were not able to do the same.
Ford did it, and they did not have to go to Bush or Obama and Beg for Billions.
X - Cars!!
Further, one of the reasons that foreign competition was so hard on Detroit is:
The competition could build NEW PLANTS and use NEW technology! America was, somewhat, stuck with old fashioned plants and equipment, and upgrading was harder.
Also, I respect Ford for not asking for taxpayer funds, but you are completely WRONG if you think Ford is financially healthy.
In fact, if Ford survives, it will be because Ford will be able to MAKE the SUV’s and trucks that Obama will not let GM make, anymore!
Back to Unions: Unions stand in the way of innovation and productivity. Unions intimidate members to vote and strike and do whatever the bosses want. Unions rip off benefit funds, health funds and retirement funds constantly.
Type “labor union crimes” or “labor union corruption” into your browser!
The energy price fluctuations, on top of the enviro regs, on top of the financial collapse all contributed.
However, if the labor unions had not forced impossible salaries and benefits onto these companies, they would be MUCH better off!
Maybe I was thinking about the auto show styling exercises.
THat’s a corvair.
air cooled engine in the back.
True dat.
MechanicKarma
I loved my Ford Pinto! I really liked my parent’s Ford Pinto.
It’s a Monza! Built by Chevy!
Yes they were. They were use to manufacturing cars to meet even stricter environment standards than the standards that applied in the States.
American companies made a conscience choice to cede the small, more fuel efficient market to the Japs. They may not have been the fatal blow, but it certainly made their situation much, much more difficult.
Corvair.
Monza.
I rented a LeSabre and thought it was wonderful, planned to buy one when my Altima wore out. But ....
You’re right about the 10,000 miles per year, though I drove from Seattle to Miami three times with it. No way I’d push her over 75 mph any more, though when it was new, we just flew across the country. Big fun.
Two of my friends in FL are GM and Ford retirees, and really depend on those pensions. The fellow who was a tool and dye maker with Ford gets only $600/mo from Ford plus very good health insurance and I don’t know what else. He’s been retired a long time, is now 90 and going strong. He’d be forced to sell his home without that Ford money.
My GM friend came from a poor family with 8 kids, worked her tush off on the assembly line, contracted lung cancer, lost a lung 20 years ago. She gets some kind of disability payment from GM and the government that almost supports her, but she has to work too. Thank God she can do caregiving 10 hours per week, but she’s really not very strong. I’d hate like hell to see her take a financial hit. Or any hardworking American who depends on those “welfare” payments.
I’m glad I met these two people a few months ago just to keep the argument real for me. Two sides, Jim from C-Town. OTOH, I worked in management in a publishing house 50-80 hour weeks, no overtime, no pension because I was just so tired I had to walk out the door before retirement age. Got paid lots less than a man in the same job. I’m working until I croak. Fortunately, I can produce a pretty good income, don’t have to work at Burger King. Some pretty impressive people do work at my local executive BK now, but that’s another story.
See #46
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