The "Big Two" U.S. automakers (DaimlerChrysler doesn't count anymore, in my opinion,) have been barraged especially hard as of late, with the biggest evidence arguably being Toyota becoming the world's biggest automaker probably sometime this year. (Note: The market value of Toyota has been higher then General Motors for years; we're talking biggest according to units produced globally.) This is a crown General Motors has held for 70+ years, with Ford Motor Company holding it before that. Can U.S. automakers stay afloat in light of the following? Japanese automakers (Toyota, Nissan, Honda) continue to build desirable vehicles many Americans crave. The Koreans (Hyundai/Kia) are trying to leapfrog the Japanese at their own game of quality. Then potentially worst of all could be the Chinese, (there are deals already in play to bring Chinese-made vehicles under the name "Chery" to America before 2010.) In 21st century, Post-Industrial America, where will our automakers be placed?
2006-06-30 19:40:19 · 5 answers · asked by Donovan P 1 in Business & Finance ➔ Corporations
The problems with pension benefits will make them sink completely if they don't react urgently, by closing all US plants (sorry for the workers!) and opening them in other countries where the labour conditions and laws are much more favorable to doing business and developping industries.
Quality is another issue they must learn to work on, as Japanese cars are proven to be better, last longer, have less problems over years...
Renault is also a bad quality brand. I know various companies which bought several "kangoo" models - they all regularly have problems. I guess Renault satisfies itself with that quality because they know they will earn more money later on services and reparations!!
Only, that way of thinking makes people say "No more Renault"! I fully approve! I think the US cars have the same problem. Isn't Toyota the 2nd biggest seller in the US?? Guess why!!
Finally, gas seems to be very cheap in the US, while in Europe, we feel it starts to be a luxury. So how can you buy huge tanks like those mega military-style jeeps, when you know how much gas it will consume (without thinking of its cost, just think - I could put gas in 3-4 other cars for double the mileage!!)
Japanese work on that. Toyota RAV4 diesel version consumes only 7.1 liters/100 km - Less than most "common cars" like Volvo, Renault, BMW or whatever, while it is a Jeep style!!
My number one criteria for buying a car was it's gas consumption, and then its price, and then the rest. My goal for my next car is a consumption below 5 litres/100 km, ideally 3 liters only...
2006-06-30 22:39:50 · answer #1 · answered by king76 3 · 4⤊ 0⤋
I'm tired of hearing that U.S. automakers problems are due to benefits. They simply have not kept up with what people want to buy, and the Japanese have done that very nicely and profitably. People want fuel-efficiency, not gas guzzlers. The U.S. manufacturers just don't get it, or maybe they are barely starting to get it. I still hear ads for "free gas for a year" if you buy a big gas guzzling American made truck. Also corporate execs get millions of dollars in salary and benefits, even if they run a company into the ground. So don't whine to me about employee benefits bringing down American automakers. Sounds like some B.S. injected into your brain by some rabid, oxycontin-infested radio talk show nutcase.
2006-06-30 20:07:15 · answer #2 · answered by galacticsleigh 4 · 1⤊ 0⤋
No, they'll never get out from under their pension benefit albatross.
Ford had a chance a couple of years ago when they had an Australian CEO who wanted to change the company and push quality and safety --he was canned. End of story.
GM is broke and can't produce a car as reliable as the ricketiest out of Japan.
There will probably be NEW specialty car makers in the USA who start with a clean slate and new factories with no pension expenses. Probably assembling cars in a port city from foreign components and drivetrains.
Don't by stock in "F" or "GM" --too late to recover.
2006-06-30 19:45:24 · answer #3 · answered by urbancoyote 7 · 1⤊ 0⤋
The emerging countries will have us by the balls in a short matter of time. We need to cut the huge pensions and perks that corporate big-wigs get (in most companies). It's greed that'll bring this fine country down....
2006-06-30 19:42:50 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Yes.
All they need to do is close all the plants and move them to Mexico and Canada (Which is exactly what they are doing)
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2006-06-30 21:35:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋