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 ...
“The car’s future lies in Europe (Hurl-o-matic)”
In Europe recently, we choked on diesel exhaust outdoors and cigarette smoke indoors. They seem to be candidates for lung disease over there.
European cars are small, that’s all. So are some of their city streets.
I can live just fine on $70 a barrel.
Thanks — I guess that’s what affect teh big German autowerks too.
Not with regards to the UAW problem — I’m talking about the choice of cars, the range, narrowign the number of brands etc. — I see Ford doing more on that as well as on improving it’s profitability and efficiency as a company. I’ve also been returning to Ford cars (including the Ka) and they are goooood. GM, on the other hand — all I see them doing is keep makign the same silly mistakes over and over again
Mind if I ask you what car you drive? Or, perhaps, you are like some good folks I know who commute on most days by motorbike/small car / bicycle and, during winter by their truck —> a sensible use of resources and one which, when we drill ANWAR, will ensure gas for Americans for generations. Good on you, citizen.
Perhaps not — you’re right. how about improving their profitability — Ford was showing significant gains until this downturn while GM was and is basically doing the same mistake over and over again
He’s got an agenda. Like many with an agenda, his beliefs shape his facts, rather than the other way around.
Alan Mulally was asked during the hearings if he would agree that all executive employees should take an across-the-board cut in pay. He replied that they needed to be able to hire the best employees, and they cost more.
The problem isn't white collar pay...pay there is based upon the market. No, there's too much "magic" thinking.
The Feds think they can get the auto industry the EU has, without $6/gal gasoline; management has believed for many years that they were entitled to market share; and the unions have pi$$ed in the well for the last 50 years, and are now complaining the coffee tastes funny.
You can't employ unskilled labor at a cost of $72/hr, when your competitors are at ~$43/hr. You can't buy out unneeded employees at $135K each when cash is short; and you cannot run the business when the national contract is thicker than the phone book.
It's not surprising the auto companies are having financial difficulties; it's amazing they've made it this long.
It appears that Management at Ford and GM have seen the light. Chrysler, who knows?
Listening to Gettlefinger during last week's hearings, it's apparent he doesn't get it; listening to congresscritters, it's apparent they don't, either.
ah, a fellow biker — there IS no better way to travel :)
I talk to retired friends in Detroit and they all feel they have been making good progress in retooling a new product line to meet energy demands. The collapse of the credit market is what has brought them to this brink.
The irony is that Congress and it's lack of oversight is what made the economy unstable and $4/gallon gas (in a recession) is what tipped it over. Now Obama is backing off on offshore drilling and Congress wants to manage the auto industry! Good luck - we all need it.
They’re caught in the wake of the perfect storm.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.