Here's a surprise - Big 3 production drops sharply
As sales continue to tank for the domestic automakers, production follows right along with the trend. So far this year, plant downtime is running nearly double what it was in 2004, with predictable impact on the bottom line of the Big 3. It's a heck of a situation to be in, as the workers get paid whether or not they're building cars, so it comes down to simply writing off the lost productivity, or building cars that will collect and need to be sold off as leftovers in whatever next summer's big sales event happens to be. "New products" coming next year are said to be the hope for reversing the trend. Now, I don't want to get too snarky, but, uh, haven't we been pinning our hopes on the upcoming "new product" for about four years now?
Reader Comments (Page 1 of 1)
jock 10:26PM (12/18/2005)
i know all of you import lovers think you are economic geniuses. but do you think that greenspan is just joking about the damage imports are bringing.
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itch 10:26PM (12/18/2005)
So I'm supposed to settle for 3rd-rate? Is that what you are suggesting there, pretty boy?
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Richard Warren 10:26PM (12/18/2005)
#1 and #2 Jock and Itch or as is commanly known Jock Itch.
Sorry guys couldn't resist
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itch 10:26PM (12/18/2005)
Just think, the city will be able to turn these shuttered assembly plants into homeless shelters. I'm sure jock will be the first to volunteer to serve turkey ("Would you like cranberry sauce with that?").
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Adrian 10:26PM (12/18/2005)
Yeah, #1, that's a joke. So you think we should be forced to buy crap because the big 3 can't make a quality and good product -- AND can't effeciently run their production process to control costs? Honda and Toyota make so many cars in the US and Canada and yet are still rolling in money. In fact, Honda has never had a non profitable year -- EVER. Toyota has only had a couple in its very long history.
The Big 3 are in so much trouble because even though their new cars are getting much better -- they forced crap down our throats for so long that they have a huge uphill battle to prove themselves. I think many people have decided that after owning crappy domestics and hearing their friends with imports praise their trouble-free and well designed cars that why not just get a import.
Huyndia is doing it -- proving themselves, so it can be done. But legislating or imposing levies to force the consumer's hand? The've tried it and it doesn't work -- and doesn't help quality either. (Motorcycles in the 80's)
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Jeff Gilleran 10:26PM (12/18/2005)
Judging by your condecending attitude, jock, Id have to say you are either ignorant, 13-15 years old or maybe discovered you could have had friends but didnt because you were the neigborhood bully?
Welcome to the 21st century, a world market.
If you dont like it, tough.
People dont like to be sandblasted for buying products that dont fit your "standard" and that are american, or whatever.
Ignoring the "ignorant" is an easy thing to do with all us "geniuses".
We dont like to listen to "reason" because you are being unreasonable.
So You like buying american goods (if you want to call them that) fine and dandy.
So do I, but I also dont base my life around making sure its "American".
Do you really think the Big 3 are American companies?
American based, built in other countries and sourced everwhere.. NOW how American are they?
And Ive owned import vehicles AND Ive owned domestic as well.
I have settled on an import brand because it fits my needs the best.
Im not a "criminal" for liking something.
Things have changed alot since WWII, and the world is still filled with Bigots like Archie Bunker.
For some reason, you attitude and comments remind me of him.
You are in for a lonely life being a looser like that.
Just live your life, and dont let us hear about how bad many of us are because we dont fit your mold of percieved "patriotism".
You "attract more bees with honey than vinegar" as the old saying goes.
Life's too short to worry about things you cannot change.
Keep your comments to yourself.
None of us want to hear it.
If you dont have something to offer in the way of constructive commentary, then dont bother posting.
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jock 10:26PM (12/18/2005)
i hope you dopes dont complain when the economy folds. Who will you blame then GM when you drive your stupid boring Toyota to the unemployment office to collect you worthless dollars. The products fromn GM and Ford are just as good as any of those products built by non americans. you are so blindly loyal to anything imported that you cant see that. Is this an english language french website?
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jock 10:26PM (12/18/2005)
Actually, you dopes, I'm just having a bad day. I really Do celebrate diversity. Me? I'm the "Orange" in the rainbow, as evident in my rash behavior at times. But I do like to show my feminine side on occasion. You can find me crusing the Wal Mart parking lot in my baby blue VW Cabriolet...w/ my poodle named "jim".
Aside from all that, I welcome everyone!! It took me awhile to come to that realization, but it grew on me. It's all the same in the dark.
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whofan 10:26PM (12/18/2005)
When or if GM folds Toyota will be in trouble too. If Toyota sinks it will just pull out and move to the next big market and take their wealth with them.
We need a good Manufacturing base in the US.I`m sure most of us enjoy our lifestyle. We have much thanks to our auto industry for a good economy.
#7 is the voice of reason. Good post Jock!
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Jeff Gilleran 10:26PM (12/18/2005)
I hope the Economy never Folds, but it might, but not because of trade alone.
Not if we have a govt that has checks and balances and doesnt push the right wing to the extreme like it is with the current administration.
If Mr Bush decides that having a supreme court justice will "fit the bill" (Harriet Miers) when she had no bench experience, and placed her as a nominiee, you HAVE to question his motives.
Just placing someone in office doesnt make them good at what they do.
How about the govt giving huge tax breaks to companies moving overseas?
Is that keeping jobs here?
What about closing some of the trade zones of companies that are grossly unfair, and maybe diversifying our products into desireable items that people will pay through the nose for?
Where's the innovation?
Where's the Fairness?
Well, today, the market is a world market, and Old Mr. B is pushing that to keep big corporations happy, and to fill the coffers of the 2% of the population.
Not the people like you or me.
So, dont blame the consumer, blame the damn govt.
We are walking like mindless sheep under the control of some wackos leading us to possible slaughter.
The Govt has pushed for backbones of individuals to be removed.
Obstinate, or pushy behavior pisses off our beaurocratic friends in office.
Its called oppression by submission.
People no longer try to have thier own businesses as they once did.
Population is out of control, corruption in the FDA, FTC, and Healthcare is rampant.
These are just a small sample of everything thats WRONG with America right now.
Trade is just a small part of the bigger picture.
We need new govt Policy with tighter checks and balances to keep Extremists like bush under wraps.
We dont need religon proliferating societies decisions.
Im not a christian, and dont want to be one, so why am I working for "christian values" just because Bush and his cronies say so?
So, America isnt the way it was 50 years ago.
I love what the country used to be.
Not what it is now.
We all have to deal with it since not enough people question "authority".
We just go along with things that they think are right for themselves.
Not in every case, but most.
If the economy folded, it would be because of the elected idiots we put in office not because of buying from Walmart or buying import cars and trucks.
There is way more to those economics.
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jock 10:26PM (12/18/2005)
blah blah blah
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Richard Warren 10:26PM (12/18/2005)
#9 What's interesting in these, shall we say "conversations" is the fact that many don't seem to understand the correlation between a solid manufacturing base.
As we move more and more of manufacturing capability offshore, we build in the danger of being at the mercy of political changes that we have no control over that can affect product avalibility. Think it can't happen? War has nothing to do with it.
Anybody here old enough to remember the "Chicken War" with Germany, it was a trade dispute that caused VW to have to raise prices on the truck line because of tarriffs imposed by Germany on chicken imports. This basically put VW out of the truck business in America at that time. A silly squabble caused both countries problems. It still goes on, one morning you might find those Korean parts you need for your car hard to get.
The n it could be as simple as this, "We've got the market now, replacement parts are now 200% more"
Something else as we sort of wholesale off manufacturing as last century stuff in favor of the service trade,high tech, information based work consider this. Where is growth happening? In countries that are embracing manufacturing, as a percentage of wages where are the higher wages in those countries, in manufacturing.
This does not mean we have to settle for an inferior product just because it's here, but we should also look at a much bigger picture such as.
What is happening to the American worker overall?
What is happening to workers healthcare and other benefits?
What is happening to what a workers wage actually buys?
What are trade deficits doing to our businesses?
What are our deficits doing to our businesses?
And that's just a few reasons to keep manufacturing here, not another countries manufacturing plants, our plants.
It is both foolish and shortsighted to say let the Big 3 sink, if they go down, a lot more companies go down that supply them, that's not just parts for the assembly, it's paper, pens, copy machines, computers, machine equipment, special tool manufacturing companies, the service techs that maintain the equipment in the plants, janitorial supplies and for those looking at a world view, how about overseas suppliers to the big 3, they get hurt too.
So before gloating over the dimise of a large American company think about it a lot, where this goes and how we might look afterwards.
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Jeff Gilleran 10:26PM (12/18/2005)
Jock,
Obviously, your ignorance is only surpassed by your 5 year old mentality.
Get a life troll.
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jock 10:26PM (12/18/2005)
Jeff
after that long winded list of pointless rambleings... all you have to say is get a life..
do you have a job?
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dave s 10:26PM (12/18/2005)
Of our last four vehicles, one is foreign-made. Our F150 is domestic, our Taurus was domestic, our Honda Acura is made in Ohio, and our Windstar was made in Canada. We have had enough trouble with the three Fords that when the Taurus died we switched and the next car we bought was the Honda - made in Ohio. This is not a foreign versus domestic problem, this is a Big 3 problem.
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Jeff Gilleran 10:26PM (12/18/2005)
Jock,
All you have done here is bicker about people misplacing "patriotism" and insulting people about buying foreign goods.
You seem to think its primarily the source of all evil and is "hurting" the economy.
My point is that there is alot more to it than just that.
Not blah, blah, blah.
There was nothing pointless about what I wrote.
This is a blog, so opinions are welcome, but not insults and belittlement.
If you feel that you need to belittle and insult people, It would be at least in everyones best interests, (including yourself) to try and maybe create some constructive critisism?
If you cant do that, the "pointless ramblings" title belongs strictly to yourself and every blog you make.
Im usually a really friendly guy, but your comments were a bit much even for me.
Its good to have opinions, but dont fricken insult people that buy imported goods.
I wouldnt insult YOU for pushing domestic when the govt is primarily the reason why we are in the world we are living now, and has much less to do with "buying foreign" than you think.
What im saying here is shoot for some tact.
Jeeze.
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jock 10:26PM (12/18/2005)
Jeff,
i dont see how its not patriotic to support american made products. if you are of the mindset (that all of the problems in the world are american made) then you can somehow justify the notion its not. in case you have not noticed the Japanese are not exactly allowing american goods to flood their markets. they have all kind of restrictions culturally, economic and beaurocratic. but thats ok because you import guys tell yourself that as long as you get what you think is the best product it does not matter that the american companies (american jobs) go bankrupt. why would you not support american products is the better question. why would you support foreign products. i can only guess is that you dont support america.
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Jeff Gilleran 10:26PM (12/18/2005)
Jock,
I do support america.
I pay taxes and work for a living as im sure you do as well.
But what I dont do is support the purchase of substandard items, vehicles in particular as they are so damn expensive.
Ive owned many domestics, and have grown tired of the mishmash of crap thats come from the big 3.
And.. Ive wanted to keep buying from them, but its just not a good choice in putting my hard earned money into what I feel is a poor investment in various ways.
As far as buying american items, I actually do put effort into doing just that.
But its not always an option for me.
Thats the catch 22.
Its pretty hard to find products "Made in the USA" these days.
So, Im not against buying American products.
What I am concerned about is getting the best I can for what little money I have particularly with vehicles.
Our Govt has a Thumbs up policy on outsourcing and favors companies that move out of the country.
Now, my friend.. THAT is unpatriotic!
So, In light of all this, I will keep buying import vehicles until I feel the value and reliablity is as such that buying Domestic is a proven, and wise decision.
Im truly an equal opportunity buyer, but Ive been burned so many times in so many ways by Domestic automakers, I cant possibly sink another coin into them.
I truly understand your position on wanting to keep america working, and keeping a good standard of living :)
But Unfortunately, with all the changes in the world and in our Govt policies.. we are too lax with the trade deficits and such.
As far as Japan is concerned, they have never been a major purchaser of our goods, but to be honest, nor has any other country for that matter.
At least thats the way its been the last 25 or so years now.
Sad but true, we just dont build what others want often enough, at prices others can afford.
We tend to be overpriced in everything, so looking at it from that perspective, we dont actually make a market of "incentive" to buy from us.
Sure, we sell things.. but not like other countries do.
And because our dollar is so big compared to places like China, we can sell the stuff at prices 20-30 times higher, and the US ran corporations make Huge profits, on low priced goods.
Thats good for capitalism in a sense, but at the same time, why do we need to have people working here in the US for 8-10 Bucks an hour when you can have someone in China build it for .50 cents?
The Govt HAS to work toward leveling the playing field.
So, there is something that can be done, but it hasnt.
And if Bush has his way with giving Corporations big breaks, it will continue unchallenged through 2008.
Its Sad on what America has become, but I have to keep my own interests too even if it means buying imported goods from time to time.
In some cases, I notice the difference against American products (Particularly tools), but not much else.
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jock 10:26PM (12/18/2005)
Jeff,
its always easier to blame the govt than to do something yourself.
Why is outsoursing any different than manufacturing overseas. If Americans dont support US manufactured products why should they care about outsourcing of services.
Not even the service jobs are immune to free trade. But Jeff as long as you are happy with your purchase who cares about the other guys job.
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