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Detroit has run out of road. The car's future lies in Europe (Hurl-o-matic)
The London Guardian ^ | December 7, 2008 | Will Hutton

Posted on 12/06/2008 5:23:52 PM PST by 2ndDivisionVet

The car was the symbol of the prewar 20th century. Henry Ford's Model T, Volkswagen's people's car and even Britain's Morris Oxford were more than just industrial products. Suddenly, industrialisation was able to offer the mass of consumers cheap, convenient and individual mobility. The car changed industrial civilisations and their cultures.

Detroit was the undisputed centre of the industry. It manufactured more cars than anywhere else - four out of five across the globe as late as the mid 1950s. Its cars shaped American society. Americans yearned to climb into its Buicks, Cadillacs and Mustangs. The cars denoted your identity and your ambitions. The mobility spawned America's vast, sprawling suburbs. 'What is good for General Motors is good for America,' said its then chairman and chief executive Charlie Wilson. He captured an important truth.

Now, America's big three car companies - General Motors, Ford and Chrysler - are fighting for their lives. Last week, they presented last-ditch restructuring plans to Congress, promising a massive increase in fuel-efficient cars and a cessation of corporate excess as the quid pro quo for more than $30bn of soft loans and stand-by credits. Without them, General Motors and Chrysler will be forced into administration; Ford, in a stronger position, could be brought down too.

The US, already reeling from the loss of half-a-million jobs last month, would face the loss of millions more and the collapse of a key part of its manufacturing base. This is more than an appeal for a bail-out: it is American capitalism and society at a crossroads.

Many different crises coincide here. There is a crisis of lack of demand created by the credit crunch, with November sales down 40 per cent. There is a crisis of production.

(Excerpt) Read more at guardian.co.uk ...


TOPICS: Business/Economy; Editorial; Government; Politics/Elections; US: Michigan
KEYWORDS: 110th; automakers; automobiles; bailouts; bigthree; bush; congress; detroit; economy; energy; financialcrisis; oil
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To: 2ndDivisionVet; Clemenza; rmlew; Reaganite1984; firebrand; nutmeg; neverdem

I see a future under socialism where they will de-invent everything in sight. We will ride bicycles, electricity will be outlawed and we will live by hunting and gathering. Mass starvation will be state policy to get rid of “excessive carbon footprints” and we will abandon cities since they can no longer be sustained. See! Pol Pot was way ahead of his time. Welcome to Zimbabwe, the model.


21 posted on 12/06/2008 7:48:52 PM PST by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: Cacique

LOL!


22 posted on 12/06/2008 7:53:23 PM PST by neverdem (Xin loi min oi)
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To: truthguy

The UK needs a moral/practical bailout?

There is no way they could pay back the loan.


23 posted on 12/06/2008 8:18:56 PM PST by quantim (Victory is not relative, it is absolute.)
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To: Azzurri
Does this guy know that the Car of the Year in Europe is from GM? The runner-up? A Ford.

Yes, the Opel Insignia and the Ford Fiesta. Both cars were designed in Germany. As the article said, the car's future lies in Europe ;).
24 posted on 12/06/2008 8:20:38 PM PST by wolf78
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To: Captain Rhino
A former GM aautomotive engineer who works at my office says the hybrid technology in the Toyota Prius is really a GM-developed design.

That sounds like an urban legend, but I absolutely believe that GM had a hybrid design ready for production at the same time as Toyota. Even Audi had a working hybrid prototype before the Prius, which was being primed for production when they pulled the plug on the project. Didn't want to cannibalize their Diesel sales.
25 posted on 12/06/2008 8:23:59 PM PST by wolf78
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To: 2ndDivisionVet

Actually, Jeeves, the car’s future lies in Asia.


26 posted on 12/06/2008 8:32:59 PM PST by flowerplough ("The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots.")
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To: LiberConservative

You may want to get those candles out again. :)


27 posted on 12/06/2008 9:12:31 PM PST by cyberbo2004
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To: Cowboy Bob
I was there. It was a great period working under Harley Earl during the Motoramas. At the time, the unions would strike only one manufacturer and what they settled for, all the other manufacturers matched for the same. Non union personnel generally also got any improvements. American manufacturers had almost the entire market so their costs were the same and they were competitive.

In the years since, they lost their share and their legacy costs have become the noncompetitive difference. The problem, however, is not that they are not competitive, but rather we no longer have a credit economy—we have a barter economy, which doesn't work in the auto industry. It's NOT a problem bankruptcy can solve. No one will ever buy a car where warranty and service are in question. I think they have also just killed the brand names they have had to announce as part of their cutback plan.

The only solution I can see is for companies that are forced to ask the government for assistance, to be required to take a percentage (TBD) hit across the board for all employees. As to the legacy costs (retirees), if the company went bankrupt, their retirement monies would fall into the Pension Benefits Guarantee Corporation (a U.S. Government Function) anyway, so why not let the government absorb and pay all those (probably discounted) legacy costs now (without the bankruptcy). That would permanently remove that burden from the manufacturers and combined with the percentage labor reductions, should make the U.S. auto industry competitive and viable.

The costs of their cars would then be “LLL” (List-Less-Legacy”

28 posted on 12/06/2008 9:44:32 PM PST by NJJ (Support al Qaeda . . . Give to the DNC)
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To: 2ndDivisionVet
Detroit has resisted every regulatory measure aimed at making more energy-efficient cars for decades, but it was particularly successful during the Bush administration. It avoided introducing the fuel-efficient cars the big three manufacture in more tightly regulated Europe, opting for high-margin gas guzzlers for the US domestic market. Now it is paying a fearful price

he's right on that count
29 posted on 12/06/2008 10:06:24 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: Azzurri

that’s a given — GM does well in Europe and Asia, but in the US, it’s car range sucks big time. It can recover, but not with a bailout. This needs to be an internal restructuring. For the record, Ford has already started down this road and they could have turned it around by 2010 if this crisis didn’t hit. Ford gets it and their cars in Europe are really very good. GM, on the other hand.....


30 posted on 12/06/2008 10:11:15 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: kempo

gas will drop down to $30 a barrel, yes. But teh economy will pick up by Q3 2009 and the oil suppliers are cutting down production NOW. when the reversal comes, the cost per barrel WILL yo-yo up and down from $40 to $140 (when the highs and lows come, I don’t know, but they will come) — why? because the price had risen too fast and has fallen too fast. Break-even for most oil cos is $30 to $40 in current $$s, so I’d guess that in the long term it will stabilise to $70. So, it’s best for the US to reduce it’s dependence on oil and cut off it’s dependence on Middle-EAstern oil NOW.


31 posted on 12/06/2008 10:14:15 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: CE2949BB

Again, sadly, HD concentrates only on the litre class and above motorcycles. The 250ccs, 500ccs etc are dominated by the Japanese and the 100ccs to 250ccs by Indian manufacturers.


32 posted on 12/06/2008 10:15:39 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: Cronos
Again, sadly, HD concentrates only on the litre class and above motorcycles.

Even if I wanted a HD, I can't afford one. Maybe I could find a used rust bucket in my price range, but... safety sorta matters. ;)

The 250ccs, 500ccs etc are dominated by the Japanese

Which annoys me to no end.

I want an American rice rocket!

and the 100ccs to 250ccs by Indian manufacturers.

I know nothing - absolutely nothing - about Indian bikes or scooters. What I've heard about their cars (well, okay, I've only heard about cheap Tata cars) frightens me. :)

33 posted on 12/06/2008 10:20:14 PM PST by CE2949BB (Fight.)
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To: Cacique

That’s one extreme. The other extreme is over-consumption. Both are bad and both feed off each other.


34 posted on 12/06/2008 10:20:20 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: CE2949BB
Indian bikes are pretty good quality -- they have a huge market adn they generally have tie-ups with various Japanese firms. Those bikes can go through years of abuse on Indian roads --




Here's a Yamaha made exclusively for India


Now all of these are 150ccs.
35 posted on 12/06/2008 11:45:15 PM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: Cronos
Maybe GM is behind Ford on restructuring but when it comes to cars consider the following;
Chevy Malibu
Cadillac CTS
Corvette
Buick Enclave.
3 of these are on Car & Drivers top 10 list, not too bad. And next year we get the Chevy Cruze and the much anticipated Chevy Volt. GM also has a ton of plans for the E-REV vehicles beyond the Volt. Ford cannot match this. They are way behind in this area. I hope both make it. If GM can survive the next 18 months, they will make it.
36 posted on 12/06/2008 11:51:47 PM PST by truthguy (Good intentions are not enough!)
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To: Cronos

The “Hunk”? lol. I love the name.

The bikes look fantastic and being able to survive years on Indian roads are a testament to the quality.


37 posted on 12/07/2008 12:07:34 AM PST by CE2949BB (Fight.)
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To: 2ndDivisionVet
Many different crises coincide here. There is a crisis of lack of demand created by the credit crunch, with November sales down 40 per cent. There is a crisis of production.

There is the crisis of knee-jerk jealousy of America and everything it stands for among European elites, but that one is ongoing.

38 posted on 12/07/2008 12:08:34 AM PST by denydenydeny ("Banish Merry Christmas. Get ready for Mad Max.."-Daniel Henninger)
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To: truthguy

My worry is the GM management’s willpower — Ford’s management has demonstrated that they want to change and turn-around their company. however, I haven’t seen such commitment from GM’s management


39 posted on 12/07/2008 12:58:30 AM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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To: CE2949BB

Yes — note that all are 150ccs and their fuel efficiency is in the range of 100 to 110 mpg. They’re about 14 to 16ps / bhp and torque is about the same range.


40 posted on 12/07/2008 1:00:18 AM PST by Cronos (Ceterum censeo, Mecca et Medina delenda est)
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