Kiss the American Auto Industry (as you knew it) Good-Bye

[1931Chevy]

http://www.edmunds.com/insideline/do...ticleId=119811
Now that DaimlerChrysler has put the Chrysler Group up for sale, the long-expected massive restructuring of the American automobile industry might finally have arrived.

Take a snapshot for posterity, because today's U.S. automotive landscape won't look like it does for much longer. As a friend reminded me, it's like what happened in the rail business at the turn of the 20th century, when once-dominant steam locomotives gave way to diesel- and electric-powered ones. The entire rail industry was turned on its ear.

For the past couple of decades, experts have been predicting a major restructuring of the U.S. auto industry because of too much plant capacity (notably that owned by Chrysler, Ford and GM), too many employees and too many costs (especially employee costs). Automakers have tried to ward off this inevitable transformation by attempting a nip here and a tuck there, but cosmetic surgery will no longer be enough.

No matter who buys it — and the list of potential suitors is long — Chrysler as we presently know it is history. More than likely, Chrysler will be acquired and broken into pieces. Some parts might be sold to the highest bidder, while others could be tossed onto the trash heap.

[DuSpinnst]

Like many things in the US, the market will be left to one or two domestic makes and a group of imports.

[63GrandSport001]

Spliting up Chrysler IMHO is a dumb idea, but the media always talks about spliting up US car companies and dumping brands.......

[GotAWD]

this is what happens when you dont support your own. Then its just expected that the goverment will bail them out again like they did twice before. But of course their are many other reasons for the demise of the Big3.

[PhishPhood]

Originally Posted by 1931Chevy

http://www.edmunds.com/insideline/do...ticleId=119811
Now that DaimlerChrysler has put the Chrysler Group up for sale, the long-expected massive restructuring of the American automobile industry might finally have arrived.

Take a snapshot for posterity, because today's U.S. automotive landscape won't look like it does for much longer. As a friend reminded me, it's like what happened in the rail business at the turn of the 20th century, when once-dominant steam locomotives gave way to diesel- and electric-powered ones. The entire rail industry was turned on its ear.

For the past couple of decades, experts have been predicting a major restructuring of the U.S. auto industry because of too much plant capacity (notably that owned by Chrysler, Ford and GM), too many employees and too many costs (especially employee costs). Automakers have tried to ward off this inevitable transformation by attempting a nip here and a tuck there, but cosmetic surgery will no longer be enough.

No matter who buys it — and the list of potential suitors is long — Chrysler as we presently know it is history. More than likely, Chrysler will be acquired and broken into pieces. Some parts might be sold to the highest bidder, while others could be tossed onto the trash heap.

This is the normal course of events in every industry.

It's what happened in the textile industry in the early to mid-20th century.
It's what happened in the steel industry as late as the 90's.
It's what happened in the power generation industry in the 60-70's.

Think of these names; Westinghouse, Bethlehem Steel, Youngstown Steel, even GE. The only difference with GE, even with it's massive infrastructure, is that it moves like a scalded cat. ( Too little profit or not efficient enough? Then cut it off and grow another arm/hand/leg )

[mkaresh]

Originally Posted by GotAWD

this is what happens when you dont support your own. Then its just expected that the goverment will bail them out again like they did twice before. But of course their are many other reasons for the demise of the Big3.

No, this is what happens when a company makes a large number of bad product decisions and generally fails to stand behind its product.

I've been feeling the same thing as the Edmunds commenter about the sale, that it's a sign that the domestic industry as we've known it is truly over.

[tgagneguam]

Originally Posted by GotAWD

this is what happens when you dont support your own. Then its just expected that the goverment will bail them out again like they did twice before. But of course their are many other reasons for the demise of the Big3.

This is what happens when US companies get complacent and expect people to buy their crap. Then, the US government is expected to support industries that only recently started to shape up for the fight that's been going on for decades. Of course, consumers are blamed for their unpatriotic purchases.

And lest anyone think I don't support local businesses by saying that, think again. It's simply that I can understand why so many people have migrated to import-branded vehicles... and have no intention of returning to Detroit-fashioned vehicles. As has been pointed ad nauseum on this site, the Big 3 gave consumers every reason to abandon them.

edit: mkaresh beat me to it...

[CADILLACSIXTEEN]

Originally Posted by mkaresh

No, this is what happens when a company makes a large number of bad product decisions and generally fails to stand behind its product.

I've been feeling the same thing as the Edmunds commenter about the sale, that it's a sign that the domestic industry as we've known it is truly over.

All this talk about the end of the Domestic Auto Industry just because of the sale of Chrysler, when Chrysler isnt even really American anyway? And hasn't been for quite some time?

I dunno about Ford's fate, at the time doesnt look too good, but GM is making very large strides to get back on track, and i, in no way, count them out.

Infact..in the 23 years ive been on this planet, my confidence in GM has never been stronger.

[MikeB]

Originally Posted by mkaresh

No, this is what happens when a company makes a large number of bad product decisions and generally fails to stand behind its product.

I've been feeling the same thing as the Edmunds commenter about the sale, that it's a sign that the domestic industry as we've known it is truly over.

I agree. The labor and legacy costs are too high. You wonder why GM and other domestic cars are cheap looking - it's because they don't have enough money to spend developing them and their material cost has to be lower than competition in order to be competitive with retail price.

And the unions and management have not done this overnight. It's been in the making since the end of WW2. I feel we are now enterring the sunset years of the american auto industry.

PS - China is looking now to market cars here

[eaton53]

Then its just expected that the goverment will bail them out again like they did twice before.

Why should the U.S. government bail out a German company? Let the German government bail 'em out!

[red_xtreme95]

Originally Posted by CADILLACSIXTEEN

All this talk about the end of the Domestic Auto Industry just because of the sale of Chrysler, when Chrysler isnt even really American anyway? And hasn't been for quite some time?

I dunno about Ford's fate, at the time doesnt look too good, but GM is making very large strides to get back on track, and i, in no way, count them out.

Infact..in the 23 years ive been on this planet, my confidence in GM has never been stronger.

well said...

[rayce08]

Originally Posted by PhishPhood

This is the normal course of events in every industry.

It's what happened in the textile industry in the early to mid-20th century.
It's what happened in the steel industry as late as the 90's.
It's what happened in the power generation industry in the 60-70's.

Think of these names; Westinghouse, Bethlehem Steel, Youngstown Steel, even GE. The only difference with GE, even with it's massive infrastructure, is that it moves like a scalded cat. ( Too little profit or not efficient enough? Then cut it off and grow another arm/hand/leg )

no , this is what happens to a country when it starts to fall from grace , loses all sense of pride and patriotism by the people and everyone only cares for themselves instead of whats good for us all .

we are simply following the course of history , Rome fell , england fell , and we are the next inline .

[MikeB]

Originally Posted by rayce08

no , this is what happens to a country when it starts to fall from grace , loses all sense of pride and patriotism by the people and everyone only cares for themselves instead of whats good for us all .

we are simply following the course of history , Rome fell , england fell , and we are the next inline .

Exactly,

This whole country is in a very complacent and apathetic phase.

We lack the pride and motivation of our ancestors and founding fathers. People only want to vote for politicians who will give them the most out of our national bank account. Over time, this selfishness is why all great democracies have crumbled. It's also why the auto industry is where it's at.

[zaxxis]

Originally Posted by GotAWD

this is what happens when you dont support your own.

I just bought a Fusion and I don't have an ounce of Mexican in me. I better return it....

[johnny smallblock]

Originally Posted by zaxxis

I just bought a Fusion and I don't have an ounce of Mexican in me. I better return it....

You misunderstood. Americans should buy American no matter what. American companies can fire Americans and set up shop elsewhere if it saves them money.