What is wrong with American auto makers?

Question

Are the execs of the big three US makers so stupid or greedy (or both) that they did not see that the world was moving away from big, gas-guzzling vehicles? It seems the Japanese auto makers saw it coming - what is wrong with Ford, Chevy, and Chrysler?

Answer 1

They were not very bright.

http://blog.360.yahoo.com/blog-pOypG0szd7Pv_X1rQxw_4qCWpA--?cq=1&p=231

Answer 2

Dude, your jumping to conclussions here. We, (thats all of us in the U.S.) have been pretty lucky until about 4 years ago with our price of gas. Yeah, thats right, 10 years ago when we were sucking gas at $1.20 a gallon and it seemed like that price would never end we did what was the logical thing, go big and powerful! Oh, and by the way, at that same time europe and the far east was paying over twice that price. So while you don't want to admit it, if we could afford it, all of us would be driving humvees if we could. Now, for the monday night quarterback comment about gas guzzling cars. No, we didn't see it because we are not the rest of the world. Remember we use more gas then anybody else, no we don't pay the same prices and we still don't. Thats right, we still pay less then europe and the far east! Now for model changes and the time frame it takes. Yeah, you guessed it, its a five to seven year developement process. We're designing for 2012 today. Now the logical aspect, car makers make cars for consumption, when does greed ever get in the way of making something no one will buy? European and japanese car makers will always make small gas saving cars, that is there need! Oh, by the way my Nissan Frontier Crew Cab gets 18 to 21 mpg, not a gas saver in any book at todays standards, and check out the Titan or other "big" japanese trucks. We on the other hand will always make car and trucks for our needs and that includes big cars and trucks when we can afford it. My advise, get a honda civic until things change for the better?

Answer 3

American Auto makers =
1. Slow in developing new technology - got surpassed by Japanese counterparts with the hybird technology.
2. Design is lackluster - weak brand power in comparison to European counterparts like BMW, Mercedes Benz
3. Give too much credit to buyers - Thus sales turnover is too low. Waiting for those people to pay off their credit on the cars for too long - Japanese and European counterparts don't give too much credits for buyers - so quick turnover.
4. Lack international recognition - only big in the US and South America - Japanese and European counterparts have already took over basically the world.

I personally think that this is not a matter of being greedy or not. This is just simply a corporate strategy went bad. I don't know how they can recover (GM, Ford) - but sure they need a hell lot of investment to do so.

Answer 4

Well, kinda. Up until recently Americans were buying the big trucks and SUVs in record numbers, and US makers were doing great. It looks like they are out of touch right now, but that could also be a result of the changing gas prices. I don't think Americans necessarily want smaller cars, just cheaper gas bills. If the gas prices continue to drop and stay down, US auto makers would be stupid to try and match the foreign makers in the area of smaller cars.

Answer 5

well, really their primary market - the US of A - was not at the time moving away from the big gas guzzlers, the SUV was still king until a few years ago. once hybrids began to catch on, then everybody jumped on the bandwagon. Japan simply has a more technologically sophisticated and environmentally conscious culture - essentially they have to, the don't have a whole lot of environment to waste - so their markets were more receptive to low gas mileage cars, and they came up with hybrids first.
you have to understand, a company is going to do what is in their own best interest first - if they don't, 9 times out of 10 they simply stop existing. the problem here is not the automakers, but the consumers themselves - as the Economics Boardroom of Dreams states "if you demand it, they will supply."

Answer 6

Corporate greed = profitability. Do you think that Toyota is making cars out of the goodness of their hearts? No, they are trying to make money.

American auto makers are suffering right now because the price of gas shot up and thus the staple of their business truck and SUV sales plummeted. Now they must rethink their auto line or go out of business.

Oh yeah, the greedy unions don't help either.

Answer 7

American autos tend unquestionably to be equipped o.k.. purely before 2000 maximum autos have been appalling, inexpensive and trouble-free factors have been used. considering that 2000 from the fairly some autos we've seen further and added uk clientele are asking us for imports. The F150, Hummer and the recent Corvette are just to call a number of what clientele are actually asking us for. purely remember the F150 is one in all the excellent merchandising vehicle interior the international and that they have got teamed up with Harley Davidson on layout. The Hummer H1 become no longer gasoline powerful now there is the H3. The Corvette use to be in easy terms sturdy in promptly lines yet now its purely as sturdy on corners. the single element the U. S. is sturdy at is honoring the guaranty on there autos whether its interior the united kingdom. jap vehicle manufactures have purely raised the standards. that is why the U. S. is suffering. the jap are actually ever competing with the German's - who might of theory that. wager it would be to do with that element referred to as the Lexus or the Hybrid autos they have produced. As for reliability the clientele and acquaintances that I unquestionably have who very own US autos say its purely as solid as the different vehicle - no longer alongside with jap.

Answer 8

Union workers could be one, but it's also due to being publicly traded companies... they are always looking at creating bottom line profit first, instead of investing profits into research and development.

I also think the oil companies have a hand in it.. why didn't the American autos develop hybrid cars first? Their still playing catch up.

Joe Ballarino
http://www.jbnaples.com

Answer 9

Management stupidity and union greed notwithstanding, they are not making vehicles that the consuming public wants to buy more than the foreign options in the marketplace... simple as that

Answer 10

It's Called Union workers

Answer 11

The unions have demanded benifits that are so far out of line the corp. can't pay them. They don't have the money for reserch.