Why is Ford changing the styling for the North American market again? What's wrong with it? I know it'll be a minor change, mostly a bumper job. But this kind of crap makes me more angry than say, a totally new sheetmetal.
The last car to do that to me was... Saab 9-3 SportCombi. I went to the auto show thinking it'll have the crushed ice-effect taillamps that the European versions had, but noooooo. For some lameass reason, they had to have the clear red reflectors. Out of blinding rage, I slammed the taillamp of the US spec 9-3 SportCombi, prompting a poor Saab booth professional to rush to the car asking if everything was okay. Then I gave a long rant about how the 9-3 doesn't have the awesome crushed ice taillamps, which must have confused the dear girl. Sigh... I think that was the same year a Mitsubishi sales manager told me to get bigger aftermarket turbos on an Evo since we don't get FQ-400s here.
Well. I was vindicated though, since the later 9-3s all get crushed ice taillamps anyway.
I see many reasonable comments that chapter 11 wouldn't be a bad thing. That's normally true, but not for this type of industry. That's because the customers enter into a long term agreement with the automaker when they purchase a car. Obviously that's very scary to buy from a company on chapter 11. This would kill GM instantly.
@Nitrous Oxide: I think the point you are making is very important. These pre-programmed bankruptcy types aren't a good fit here. What needs to occur is a special bankruptcy format with protections for stock (so people will want to buy and hold a piece of the company) for buyers (so people will buy the cars and be able to expect warranty protection) and a wage floor for workers, based on the average of all non-unionized auto workers nationwide.
There also needs to be regulatory relief on the production of vehicles, so that European models can rapidly be converted to US markets, because that is more than half of the burden which Detroit is dealing with here.
Simply giving loans isn't the answer. There needs to be an automotive New Deal.
Atlanta has gone from 3 Assembly plants (GM Lakewood closed in the 1980's, GM Doraville closed this year, and Ford Hapeville closed in 2006) to none. Ford had a plant in Atlanta since they started putting together Model T kits in 1910's or 1920's. Really Lockheed is the only big manufacturing facility left in the Atlanta area, everything else is service jobs or much smaller scale manufacturing.
Rome burns while Nero Bush fiddles. Sad, really, that Paulson felt it necessary to reward his richest friends rather than the people who actually still know how to manufacture things besides securitized debt instruments of mass destruction.
But it probably doesn't matter what Paulson or Bernake does in the short term. The crisis has gone beyond the control of even the fed at this point, and life support now is likely only to prolong the agony.
No matter what financial deals are struck, significant portions of all unsustainable industries, including many parts of the auto industry, are going to be axed. Overstretched personal budgets worldwide are going to prioritize keeping a roof overhead rather than buying more automotive bling. NO COMPANY OR INDUSTRY CAN CONTINUE TO MAKE WHAT THE CUSTOMER ISN'T BUYING.
Nothing like a recession (or depression?) to remind all of us to live within our means.
Superior Industries International, in Van Nuys, CA, supplies many major automakers for OEM aluminum cast and forged wheels. Back when GM was building Camaros/Firebirds in Van Nuys, they had that very local market. That former GM plant is now a collection of big-box shops.
Superior as moved many jobs to Mexico, but the small remaining Van Nuys entity would be in jeopardy if more domestic sales falter or fail.
Well, if only one of the Big 3 goes down, that wouldn't take out all the push pins. And anyways, someone else would probably buy the factories to build something, so not quite as many jobs lost as the doom-and-gloomers are crying about.
Anyways, if it happens, I think somehow we'll all survive. I just don't see what's happening different now that will make the Big 3 profitable, even with a massive cash infusion to tide things over.
What about the Canadian plants? They'll be hit just as hard.
GM has active plants in Oshawa, Ontario; Windsor, Ontario (until 2010); and the CAMI plant in Ingersoll, Ontario. Not sure about the other two companies.
@slowinthefastlane: Doesn't GM also have an engine plant in St. Catherines? After that, Ford's got Oakville and St. Thomas (along with an engine plant in Windsor), and Chrysler's got Windsor and Brampton.
Maybe failure is what the auto industry needs so it can reinvent itself as a success. Innovation in Detroit is something that has gone missing a long time ago. For the last ten years the answer has been make it bigger, give it more BHP, and stuff it full of electronics. Maybe there is this need for a car that is dependable, won't rust after a few years, the electronics won't start crapping out in three years. I don't need a car with 27 way power adjustable seats. I need something that will start every morning and not show me a check engine light when someone in front of me farts.
I am surprised that someone has not tried sticking fins on cars again as an answer to the problems. It is really easy to compete with Toyota, Nissan, and Honda. Copy and steal everything they do. Hyundai did this and in 20 years went from being a joke disposable car to high quality and low cost.
The big three need to change and just throwing money at them to keep doing what caused the trouble is not going to fix anything.
@adp113: You forget that what you claim Detroit shouldn't have done is exactly what the consumers wanted. (except the crappy electronics, which apparently German car buyers now completely ignore)
And holy crap, if Detroit copied what Toyota did, those engineered being laid off should feel glad, otherwise they'd end up dead from overworking.
I can't remember the last time a massive conglomerate actually managed reinvent itself successfully after being completely bankrupt. Can you?
@Parkington spends more time on Gawker Media than at anythin...: They aren't completely bankrupt. Their stock values tanked. Real assets still exist. So total value can be represented as bankrupt, but that isn't the real deal. Regarding conglomerates, they work like the rock after which they are named. Pieces within the soft matrix holding them together may be harder, so that when the large structure disintegrates, they are just fine. Think of it like breaking up a huge turd so it can go down the commode. Some of it will dissolve in the water. But that undigested corn is going to hang around for eons.
@Parkington promises to stop changing his name every day: Actually, what I'm talking about, is that certain manufacturing units can switch to producing for VW or some of the other manufacturing enterprises still expanding. And also, If factories and property are sold, that generates capital for the remaining more profitable segments. rather than consider this possibility, what we get is "Save our existing structure' arguments. The economics of that isn't sound. Capitalism has to deal with excess capacity by allowing less productive units to be cannibalized for growth of the more productive. Intervention in that schema will screw EVERYTHING up. Let the dissolved shit settle to the bottom of the pond. It will indeed reform into compacted sludge...
And who would be BUYING all of these shiny new GM/VW buggies?
Sales are already down 40-50%. And that's not going to instantly ramp back up with new investment in old infrastructure, nor are tight credit markets going to help transferred workers buy what they're now making for some new company.
And a lot of those "less productive units" include people who were PREVIOUSLY buying cars - who will now have no jobs at all to do so.
I think you need to do a little research on Henry Ford, and the economics that he balanced to make sure he had CUSTOMERS within his employee base, so he could actually sell what he made.
@ROCKYLIFE: You are overestimating the immediate economic importance of the Big Three's employee base buying cars, in at least two ways.
First, over-extension of credit recently has glutted demand, so people can afford to put off major durable goods purchases for a while. They are likely to remain on the sidelines until a compelling reason to purchase comes up, like more efficient and affordable vehicles, or like it did in computers, a new energy paradigm forces the purchase of a new car that works with the new system. Demand at that time will have to ramp up, and it will happen sooner, if artificial intervention in the markets doesn't allow the dinosaurs to continue to feed.
And most of the displaced workers are relatively skilled individuals who have other economic potential, so assuming that they will be unable to purchase vehicles when the demand spike hits, is not logical.
Besides, this isn't about only the autoworkers. The housing downturn is actually much more important to the health of our economy. When people felt flush on the strength of their home's appreciating value, they bought vehicles. There was also considerable lateral movement in sale of homes, so people could move from one job to another fluidly. These factors will limit durable goods sales, and also make it harder for families to sell their house, and move from a place where they lost a job, to a new place where one is available. That ACTUALLY is a more important factor to the well-being of those autoworker households than artificially propping up a dying sales model.
The push pin for the Chrysler engine plant in Keosha WI is missing also.
You could put a half a pin in for the Janesville SUV plant also but they are set to close Dec 23rd.
The collapse of the American auto industry will also affect my company (I work in engineering at an American motorcycle manuf) by making the prices of components we purchase increase. We are a small customer to most of the suppliers and if they manage to stay in business they will pass the buck to us.
There is also the chance that Delphi goes under (We buy a lot from them) and our test track is owned by a one auto mauf and we are set to move to a facility owned by another in the near future.
Things are going to get ugly for a lot of America as well as the rest of the world if the toilet gets flushed.......
@d0nut: I was going to point out the missing Kenosha pin too, but you beat me to it. My old stomping grounds - I graduated from Carthage College in Kenosha.
I work for a mid-sized family owned manufacturing business...we have already frozen hiring, suspended merit increases for 2009, and are taking every other measure we can think of to avoid layoffs.
04/25/09
The last car to do that to me was... Saab 9-3 SportCombi. I went to the auto show thinking it'll have the crushed ice-effect taillamps that the European versions had, but noooooo. For some lameass reason, they had to have the clear red reflectors. Out of blinding rage, I slammed the taillamp of the US spec 9-3 SportCombi, prompting a poor Saab booth professional to rush to the car asking if everything was okay. Then I gave a long rant about how the 9-3 doesn't have the awesome crushed ice taillamps, which must have confused the dear girl. Sigh... I think that was the same year a Mitsubishi sales manager told me to get bigger aftermarket turbos on an Evo since we don't get FQ-400s here.
Well. I was vindicated though, since the later 9-3s all get crushed ice taillamps anyway.
04/25/09
04/25/09
04/25/09
04/25/09
04/25/09
04/25/09
04/25/09
04/25/09
04/26/09
12/11/08
12/11/08
There also needs to be regulatory relief on the production of vehicles, so that European models can rapidly be converted to US markets, because that is more than half of the burden which Detroit is dealing with here.
Simply giving loans isn't the answer. There needs to be an automotive New Deal.
12/11/08
12/11/08
But it probably doesn't matter what Paulson or Bernake does in the short term. The crisis has gone beyond the control of even the fed at this point, and life support now is likely only to prolong the agony.
No matter what financial deals are struck, significant portions of all unsustainable industries, including many parts of the auto industry, are going to be axed. Overstretched personal budgets worldwide are going to prioritize keeping a roof overhead rather than buying more automotive bling. NO COMPANY OR INDUSTRY CAN CONTINUE TO MAKE WHAT THE CUSTOMER ISN'T BUYING.
Nothing like a recession (or depression?) to remind all of us to live within our means.
12/11/08
12/11/08
12/11/08
Ya had a nice little point going there, then you had to interject with the "making cars people aren't buying" stupidity.
The Big 3 still design, build and sell somewhere north of 60% of ALL cars sold in N.A.
But you're not off by "much"... ; )
12/11/08
12/10/08
Superior as moved many jobs to Mexico, but the small remaining Van Nuys entity would be in jeopardy if more domestic sales falter or fail.
12/10/08
12/10/08
12/10/08
12/10/08
12/10/08
Anyways, if it happens, I think somehow we'll all survive. I just don't see what's happening different now that will make the Big 3 profitable, even with a massive cash infusion to tide things over.
12/10/08
12/10/08
GM has active plants in Oshawa, Ontario; Windsor, Ontario (until 2010); and the CAMI plant in Ingersoll, Ontario. Not sure about the other two companies.
12/11/08
12/12/08
12/10/08
I am surprised that someone has not tried sticking fins on cars again as an answer to the problems. It is really easy to compete with Toyota, Nissan, and Honda. Copy and steal everything they do. Hyundai did this and in 20 years went from being a joke disposable car to high quality and low cost.
The big three need to change and just throwing money at them to keep doing what caused the trouble is not going to fix anything.
12/10/08
And holy crap, if Detroit copied what Toyota did, those engineered being laid off should feel glad, otherwise they'd end up dead from overworking.
I can't remember the last time a massive conglomerate actually managed reinvent itself successfully after being completely bankrupt. Can you?
12/10/08
12/10/08
Then how the hell is Volvo still in business?
Sorry, guys, I love you (I've got a 244) but my grandmother's '00 XC70 was nothing but aggravation. Lovely car, though.
12/10/08
12/10/08
12/11/08
12/11/08
And who would be BUYING all of these shiny new GM/VW buggies?
Sales are already down 40-50%. And that's not going to instantly ramp back up with new investment in old infrastructure, nor are tight credit markets going to help transferred workers buy what they're now making for some new company.
And a lot of those "less productive units" include people who were PREVIOUSLY buying cars - who will now have no jobs at all to do so.
I think you need to do a little research on Henry Ford, and the economics that he balanced to make sure he had CUSTOMERS within his employee base, so he could actually sell what he made.
12/11/08
First, over-extension of credit recently has glutted demand, so people can afford to put off major durable goods purchases for a while. They are likely to remain on the sidelines until a compelling reason to purchase comes up, like more efficient and affordable vehicles, or like it did in computers, a new energy paradigm forces the purchase of a new car that works with the new system. Demand at that time will have to ramp up, and it will happen sooner, if artificial intervention in the markets doesn't allow the dinosaurs to continue to feed.
And most of the displaced workers are relatively skilled individuals who have other economic potential, so assuming that they will be unable to purchase vehicles when the demand spike hits, is not logical.
Besides, this isn't about only the autoworkers. The housing downturn is actually much more important to the health of our economy. When people felt flush on the strength of their home's appreciating value, they bought vehicles. There was also considerable lateral movement in sale of homes, so people could move from one job to another fluidly. These factors will limit durable goods sales, and also make it harder for families to sell their house, and move from a place where they lost a job, to a new place where one is available. That ACTUALLY is a more important factor to the well-being of those autoworker households than artificially propping up a dying sales model.
12/10/08
You could put a half a pin in for the Janesville SUV plant also but they are set to close Dec 23rd.
The collapse of the American auto industry will also affect my company (I work in engineering at an American motorcycle manuf) by making the prices of components we purchase increase. We are a small customer to most of the suppliers and if they manage to stay in business they will pass the buck to us.
There is also the chance that Delphi goes under (We buy a lot from them) and our test track is owned by a one auto mauf and we are set to move to a facility owned by another in the near future.
Things are going to get ugly for a lot of America as well as the rest of the world if the toilet gets flushed.......
12/10/08
I work for a mid-sized family owned manufacturing business...we have already frozen hiring, suspended merit increases for 2009, and are taking every other measure we can think of to avoid layoffs.
Tough times, and the worst is yet to come.
12/11/08
First Parker Pen, now GM...goddamn the decline of American manufacturing is sad.
A service economy won't work. This country is fucked long term. Mark my words.
12/11/08