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mike @ Apr 24th 2008 9:18AM
EPILONUS...for struggling American carmakers?
OK, but they are struggling because of MANAGMENT, not unions. You have been told this before probably many many times over...Ford does not sell Focus for profit....its only point is to meet CAFE, Civic and Focus are so far apart it not even funny. Who's fault is that? MANAGMENT.
Exactly the same applies to Aveo and Cobalt, while they do sell in BIG numbers...they are not PROFITABLE. They are there to offset CAFE numbers.........Honda makes Civic to make money, Toyota makes Corolla to make money, detroit makes small cars to meet CAFE.......see something very wrong here?
Who's responsible?
Also one more question for you, gas prices went up after Sept 11, we are in 2008. How come the managment of GM still uses oil prices as an exuse, they have had 7 years to deal with this issue, 7 years and as people swich cars they will abandon Detroit cars and get great Foreighn cars........................who's fault is that?
bakka @ Apr 24th 2008 10:30AM
BULLSEYE!
Derek @ Apr 24th 2008 12:05PM
You forget that for years the UAW has insisted on production guarantees from the Big Three. The result was overproduction and a glut of fleet sales to off-load the excess vehicles because it was better for the bottom line to do that than stop production.
Then there's the healthcare and wage issue that has driven up costs and likely resulted in the rampant cost-cutting so prevalant among domestic manufacturers as they try to compete with rivals who had lower labor costs. Betcha that the Cobalt and Focus would be profitable cars if the domestic makers weren't spending a premium of several thousand dollars *per car* on labor.
No, it's all managements fault... :/
Big Rocket @ Apr 24th 2008 12:04PM
I think it is downright pathetic that every time, when a union apologist has to make excuses for the UAW, he/she almost invariably points out the transgressions of management. Of course the management has made poor decisions in the past that hurted the Big 3, and continue to hurt the Big 3. Of course the vast majority of upper management is completely overpaid. But none of this will ever excuse the UAW's own transgressions. If the UAW boys and girls can't be satisfied with building cars for about $30 an hour in wages plus another $30 an hour in benefits, there are plenty of foreign workers in Mexico, China, India, and elsewhere willing to build the same cars for much, much less. The UAW does NOT protect American jobs; it dares the management to offshore them overseas. It is not the cure, but the very disease it claims to fight.
Drake @ Apr 24th 2008 12:13PM
@Mike
If we assume your logic is correct, then things are about to change. NHTSA's new CAFE regulation will regulate fuel economy based on the vehicle's footprint (track x wheelbase) starting with the 2011MY. This means that the incentive to sell small cars to account for large cars poor fuel economy goes away. OEMs will need to meet the fuel economy target specified for the size of vehicle. So, if management sells the small cars at a loss to sell large cars, then this will no longer be the case. If GM, or any other UAW supported OEM can't sell a small car for a profit, then there is very little business case to make one.
I believe 2011MY starts in 2010, so this is within the time period of the labor contracts being discussed. Mgmt is trying to ensure that starting with the 2011MY, small cars can be made profitable in the U.S., otherwise, there will be no small car to make. With no car to make, there will be no job for the UAW member to do. Like it or not, the new contract has to support a profitable small car, or the jobs will go somewhere else.