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I think the unions should take the brunt of the blame for the domestic automaker's woes. You can not consistently make money when you have to give in to the unreasonable demands of clowns like the UAW.
It's hard enough to make money in good times.
Small cars, big trucks... doesn't matter. They could make money selling re-branded Yugos if it weren't for the unions.
Michigan is going to have to enter the 21st century if they ever want get out of their mess.
I think the unions should take the brunt of the blame for the domestic automaker's woes. You can not consistently make money when you have to give in to the unreasonable demands of clowns like the UAW.
It's hard enough to make money in good times.
Small cars, big trucks... doesn't matter. They could make money selling re-branded Yugos if it weren't for the unions.
Michigan is going to have to enter the 21st century if they ever want get out of their mess.
The Unions are a BIG part of the problem currently, but it's also unfair to say that they are the only problem.
Although management was bullied into bad contracts to some extent, they also have to take some of the blame for negotiating those things. Also, although GM's quality is fine now, they paid a big price for the poorly-designed cars of the 80's and 90's. The lost market share as a result of that era is still a thorn in GM's side right now. That's why you still hear people saying (incorrectly) that GM is failing because they build junk cars that no one wants. That reputation didn't come from thin air. They earned it. It's no longer true and I like to fight it when I hear it, but I also understand it.
BUT - the basic problem right now is still profitability.
The Unions are a BIG part of the problem currently, but it's also unfair to say that they are the only problem.
Nobody said unions are the only problem. The union situation is the "low hanging fruit" and when rectified, will go the longest distance in returning GM to profitability. The union issue needs to be addressed first and foremost, then they can deal with quality perception, etc.
For the record, I bought a Saturn SUV one year ago and am very happy with it; I've had absolutely no problems whatsoever. On my previous Hondas and Toyotas, I've encountered at least one or two small problems during the first year.
The Unions are a BIG part of the problem currently, but it's also unfair to say that they are the only problem.
Although management was bullied into bad contracts to some extent, they also have to take some of the blame for negotiating those things. Also, although GM's quality is fine now, they paid a big price for the poorly-designed cars of the 80's and 90's. The lost market share as a result of that era is still a thorn in GM's side right now. That's why you still hear people saying (incorrectly) that GM is failing because they build junk cars that no one wants. That reputation didn't come from thin air. They earned it. It's no longer true and I like to fight it when I hear it, but I also understand it.
BUT - the basic problem right now is still profitability.
GM leaving would not be a big deal. Detroit is a major U.S. city, so they have other industries to rely on to keep the city going. Just like the many other major U.S. cities.
If they don't, then its the residents and leaders fault for not wanting other industries in the city and metro area.
GM doesn't make AS much money on smaller cars, to say they don't make money on non SUVs is just daft, seriously, they are greedy, and this is what they get for it, don't sell me that BS that SUVs are the only way they will survive. Something else that US automakers have to deal with that ALL other automakers don't is health care. All other automakers have national healthcare so the automakers don't have to pay into the health system, unlike GM. NO ONE realizes that, the amount of money GM pays wages vs health care is REALLY disproportionate. Our health care system is plainly to expensive. Watch these reports before you rebuttal.
GM doesn't make AS much money on smaller cars, to say they don't make money on non SUVs is just daft, seriously, they are greedy, and this is what they get for it, don't sell me that BS that SUVs are the only way they will survive. Something else that US automakers have to deal with that ALL other automakers don't is health care. All other automakers have national healthcare so the automakers don't have to pay into the health system, unlike GM. NO ONE realizes that, the amount of money GM pays wages vs health care is REALLY disproportionate. Our health care system is plainly to expensive. Watch these reports before you rebuttal.
Why should it be a company's responsibility to fully pay for a person's health care until they die? The problem isn't our health care system, it's that GM's contracts are overly-generous. How many companies in the U.S. have reasonable health insurance plans, and yet somehow manage to NOT be massive failures like GM????
The health care that people get in those countries isn't free. Instead of making companies foot the bill, the people just pay for it themselves. It still has to be paid for.
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