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This time around, gas isn't $4/gallon so it doesn't seem there's any reason for people to suddenly be averse to larger vehicles the way they were back in 2008 which contributed to their first crisis.
The problem with the American auto market is the high barrier of entry for new businesses. All of this awesome regulation that we insist on having also means that it takes BILLIONS to start a new company. This means the few in business can afford to be lazy and push mediocre products on us. Sure we have imports but good "pro American" marketing and import costs keep those in check.
This time around, gas isn't $4/gallon so it doesn't seem there's any reason for people to suddenly be averse to larger vehicles the way they were back in 2008 which contributed to their first crisis.
No but consumers have memories and those that bought a V8 gas burner just before gas went to 4 bucks are going to have a hard time forgetting that that can happen again at any time.
So that particular article talks about US firms in general (which Chrysler is still included in, though honestly probably shouldn't be due to Fiat ownership).
Additionally, GM won 8 segment awards (mentioned in that same article) and the article also mentioned that the US companies were closing the quality gap more quickly than imports.
Basically right now in vehicles there's Toyota - and EVERYONE else. So if you don't own a toyota (BMW, Honda, Audi, GM, Ford, Kia, etc..) - everything else is pretty much equivalent.
Which is to say Toyotas are insanely reliable, and everyone else is pretty darn good.
What has nothing to substantiate any ongoing issues at GM, or anything to suggest a bankruptcy is anywhere on the horizon.
Location: New Albany, Indiana (Greater Louisville)
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I wish GM well as many people are employed by them but I've had their crap in the past and never will again. That said they are still the best seller right now so other people like them better than me.
Their bankruptcy was largely due to benefits and costs associated with it, a freezing of the credit markets and very little to do with quality control or models of cars available
You obviously didn't read that article. It states CLEARLY that ALL 4 of GM's brands ranked ABOVE AVERAGE in problems reported. GM also won more segment awards than any other maker. GM's Cadillac was one of the industry's biggest gainers and came in very high at #3. Cadillac, Buick, and Lincoln were also in the top ten best performers. It also states that the OVERALL (meaning all automakers) industry suffered setbacks. It also states that U.S. based automakers improved their quality rankings at a greater rate than imports. Your tale hold's no water.
Their bankruptcy was largely due to benefits and costs associated with it, a freezing of the credit markets and very little to do with quality control or models of cars available
Just so everyone knows, this ^ is correct.
What I find funny is how folks argue that the employees are not paid enough, yet it is precisely the high labor and legacy pension/benefit costs that really took GM down. And continues to weigh on other large corps and municipalities (e.g. Detroit).
But this is the convenient narrative. It is very easy to say workers deserve more and the quality of cars is poor. Much harder to apply second-level thinking and find the real causes.
People complain about the bank bailouts but every single one paid back their loans with interest. These auto companies lost the government money. Stick to german made cars.
Agreed! I love my 2015 Taurus, and my daughters 2014 Focus has been great since we got it last year too. I'm trying to convince my wife to trade in the old minivan on a new Ford Escape or Edge. Frankly, I wouldn't own a GM vehicle if they tried to give it to me for free.
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