Bon Voyage

Campus Report ^ | March 11, 2009 | Alanna Hultz

[bs9021]

Bon Voyage

by: Alanna Hultz, March 11, 2009

With GM, Chrysler and Ford reporting losses because of the economic downturn and consumers not willing to buy, the future of the big three is questionable. The first two companies have already received billions in bailouts from the government and are requesting more money so they are not forced into bankruptcy.

At a National Press Club event, Craig Cather, president and chief executive officer of CSM worldwide and Eric Fedewa, vice president, Global Powertrain Forecasting discussed the future of the three companies and three critical questions that lawmakers and government officials will be debating through March such as:

• Are GM and Chrysler viable companies?

• If they are should they be restructured in or out of bankruptcy with additional government assistance?

• Should California and other states be granted waivers to regulate CO2 emissions under the Clean Air Act, and

• How will waivers impact the stability of an already fragile auto industry?

Cather said the “Detroit three were hit hard.” He went on to explain where things went wrong. Cather said “some problems with the companies are uncompetitive wages and benefits, too many dealers, excess capacity and redundant brands.” There are too many franchises and the companies are producing more cars than they are selling. The companies are also selling products that are similar in body style and make, so the companies are selling products that are competing with each other.

Cather also discussed how Detroit responded to the loss and said “the companies were restructuring before they came to Washington, just not fast enough.”...

[sinanju]

The Big Three are going to be the last pet causes that Obama will abandon before being dragged off the throne and off to the guillotine.

He will not easily abandon his UAW supporters. Nor will he easily abandon the Big Three car companies themselves as they are intended to build the new generation of green cars that we will all then be forced to buy.

[TruthHound]

Auto company bailouts: whistling past the graveyard.

[HighlyOpinionated]

Ford could make a comeback if they’d start building 40 mpg ESCORTS again (stick shift). I wrote them and asked them to do so. But . . . everyone wants an SUV. No they don’t. They want 40 mpg.

These people are idiots who don’t live in the real world where the choice is “a gallon of milk for the kids or a gallon of gasoline for the car.”

Dumb@$$e$ every one of them. They may live in the Penthouse, but the elevator stops a floor short.