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Why are Toyata and Honda more profitable, is it their styling, reliability,pricing, gas efficenties or just our frame of thought that foreign cars are better built.
None of the above.
The "Big 3", along with German manufacturers, have higher overhead costs. Things like: Pension funding, Employee health insurance, Good wages/benefits,etc.
Toyota, Honda, Nissan, Hyundai, etc. have more freedom to shift production to where it's most economical. "Domestic" and European automakers are limited in this regard.
I think the last thing Ford needs right now is GM to drag it back down.
I'd like to think Ford is slowly revitalizing itself with it's new product introductions; vast improvements - And their choice to delay the new F-150, I believe, is a very wise one.
GM however; while it is improving it's product offering - I don't know.. I think it's having a hard time staying relevant, honestly. They lack true "segment leaders" (Maybe the new Malibu will change things in the long run) and with the likes of Pontiac and GMC, it's just product overkill.
I don't see a GM-Ford merger ever happening. I DO see Ford changing it's image and becoming profitable. GM selling both GMC AND Pontiac would do wonders.
Things need to change.
The "Big 3", along with German manufacturers, have higher overhead costs. Things like: Pension funding, Employee health insurance, Good wages/benefits,etc.
Toyota, Honda, Nissan, Hyundai, etc. have more freedom to shift production to where it's most economical. "Domestic" and European automakers are limited in this regard.
Are you kidding? Japanese (and some European) auto makers locate their plants in the US and employ US workers. Granted they are non-union, but they pay well and are among the best jobs in their areas.
It's the "Big 3" American companies that run all those Mexican assembly lines.
Are you kidding? Japanese (and some European) auto makers locate their plants in the US and employ US workers. Granted they are non-union, but they pay well and are among the best jobs in their areas.
It's the "Big 3" American companies that run all those Mexican assembly lines.
Nope, not kidding.
The European automakers opened North American plants because the costs were/are lower than overseas, and we had the skilled workforce that they felt they couldn't find in other low-cost countries.
The Asians opened their plants here because of issues with monetary exchange rates(yen-dollar) and they were also worried about possible backlash from american consumers.
The point that i was making, is that these foreign companies do not have the constraints of being tied to a certain location.
If Mercedes can produce the ML for less $$$ in Germany than in Alabama, is there anything to stop them from ceasing operation in AL?
If Nissan can produce an Altima for less $$$ in Japan than in TN, can they be stopped from moving out?
How are the Big 3 tied to a certain location? Ford just announced that it would build (another) huge plant in Mexico.
I don't think it's farfetched to say that one day, the Big 3 (if they survive) won't be building ANY cars in the US. Cars will just be another on the LONG list of products that are no longer produced in the USA.
that would be a nasty mess. ford makes real trucks. not plastic wana be trucks. and i used to drive gm back in the 70's and 80's when they made something worth driving. gm hasn't made a good truck since the 80's. here's a picture of one of the last good trucks gm made and i used to own it.
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