What will it take to fix the U.S. auto industry?

[roteague]

http://www.msnbc.msn.com/id/12189371/

"With American car makers losing both money and market share, Detroit is working overtime to get this troubled industry back on track. But unlike the past downturns that were driven by the ups and downs of the U.S. economy, many of the problems confronting American car companies are not shared by their competition.

This week, CNBC will take an in-depth look at what ails the U.S. auto industry -- and what needs to be done to fix the problem.
At the heart of Detroit's troubles is a failure, on the one hand, to build reliable cars that Americans love and, on the other, to get credit when it does so.

...

But having a good product -- or even a line of good products – isn’t enough to guarantee success. That's especially true for companies that have made bad labor deals, can't run their factories or inventories right or engage in self-destructive pricing behavior. There are a lot of pieces to the puzzle of permanently fixing the business model: Some brands may have to go, production of some components and parts may have to move offshore, and a completely new approach is needed to labor negotiations with the United Auto Workers."

[mgescuro]

It's gonna take quite a bit to overhaul the auto industry.
It does need competent and competitive products. It needs to change its perception with consumers.
Furthermore, it needs to update its factories to keep pace with global competition.
And they need to cost costs right and left and sideways.

Too much to do.

[bhoppes]

Hopefully this will be a good documentary and hopefully show that it would help our economy to buy a "Detroit" car rather than a foreign car. And it should also get certain points straight such as quality ratings, design, and other things that "Detroit" should receive credit for.

[grumbles]

Originally Posted by bhoppes

Hopefully this will be a good documentary and hopefully show that it would help our economy to buy a "Detroit" car rather than a foreign car. And it should also get certain points straight such as quality ratings, design, and other things that "Detroit" should receive credit for.

People aren't going to buy a inferior product just because it's made by Ford, GM, or DCX. Only the morons who live in the Metro Detroit area do that.

I'm sick of this stupid ****************ing attitude and it needs to die, now.

Do you understand the free market, or capitalism? Look them up, please, as it'd do you a whole lot of good.

The only way to "fix" the U.S. auto industry is to buy the best product, period. That's the American thing to do.

[mjd1001]

Originally Posted by bhoppes

Hopefully this will be a good documentary and hopefully show that it would help our economy to buy a "Detroit" car rather than a foreign car. And it should also get certain points straight such as quality ratings, design, and other things that "Detroit" should receive credit for.

To just the opposite of your point:

I was driving Saturday morning across a few states (I'm not sure if I was in PA or Ohio at the time) and there was one of those radio shows about money and saving on. The host was a woman. A caller asked about hwo to afford a different car, if she needed one and if leasing was a good idea.

Anyway, the conversation was pretty long for a call in show..but the radio host kept telling her over and over to NOT buy a new car, but if she did to look at one that would last her for 8-10 years...and recommended a Honda Civic and Toyota Corolla. The host then went on to say over and over to NOT buy a domestic. She was saying when you buy a domestic, you are spending money to simply support high salary CEO's and you are supporting huge pensions and benefits for workers that probably need less of that then the person who has trouble affording a new car.

I know many people on this board will agree with those thoughts..but I just thought it was strange to be hearing a call in show in the midwest where the host was telling the listeners to stay away from domestics because they "can't be worth what you are paying" because of how much of the money goes to employee salaries and legacy costs.

It had to be about 9-10am, and I think it was out of Cleveland or Columbus or Akron.

[bhoppes]

Originally Posted by grumbles

People aren't going to buy a inferior product just because it's made by Ford, GM, or DCX. Only the morons who live in the Metro Detroit area do that.

I'm sick of this stupid ****************ing attitude and it needs to die, now.

Do you understand the free market, or capitalism? Look them up, please, as it'd do you a whole lot of good.

The only way to "fix" the U.S. auto industry is to buy the best product, period. That's the American thing to do.

What would you consider the best product to be? Something American built by Americans, with most profits staying in America or something of the complete opposite?

[gopedxr7]

"What will it take to fix the U.S. auto industry?"

americans buying american cars.

Alan

[Buickman]

Simple...Return to Greatness.

Buickman

[1999 White C5 Coupe]

Originally Posted by gopedxr7

"What will it take to fix the U.S. auto industry?"

americans buying american cars.

Alan

I agree 100%!

How many consumers had their fathers or grandfathers (or even themselves) fight the Japanese and the Germans in WWII? Now, they buy their vehicles and are helping the decline of the American auto industry.

[Whirling_Dervish]

Originally Posted by gopedxr7

"What will it take to fix the U.S. auto industry?"

americans buying american cars.

Alan

or...

Class leading cars across the board with the best value at the best price, backed by the best warranty. A couple of stray models won't do it. It has to be a total effort.

Do this and Americans will buy. People will not buy a percieved inferior car out of patriotic heart-string pulling.

[V6powerr]

RWD Chevys and other domestics like the Chrysler 300 because a car should be something special not a "me too" car to the foreign cars of Toyota, Honda, and Nissan. Make an Impala like it used to be ;not as a prepackaged appliance like a toaster with a digital clock!

[CobaltSScrazy]

Originally Posted by gopedxr7

"What will it take to fix the U.S. auto industry?"

americans buying american cars.

Alan

AMEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Havasavana]

Originally Posted by mjd1001

To just the opposite of your point:

I was driving Saturday morning across a few states (I'm not sure if I was in PA or Ohio at the time) and there was one of those radio shows about money and saving on. The host was a woman. A caller asked about hwo to afford a different car, if she needed one and if leasing was a good idea.

Anyway, the conversation was pretty long for a call in show..but the radio host kept telling her over and over to NOT buy a new car, but if she did to look at one that would last her for 8-10 years...and recommended a Honda Civic and Toyota Corolla. The host then went on to say over and over to NOT buy a domestic. She was saying when you buy a domestic, you are spending money to simply support high salary CEO's and you are supporting huge pensions and benefits for workers that probably need less of that then the person who has trouble affording a new car.

I know many people on this board will agree with those thoughts..but I just thought it was strange to be hearing a call in show in the midwest where the host was telling the listeners to stay away from domestics because they "can't be worth what you are paying" because of how much of the money goes to employee salaries and legacy costs.

It had to be about 9-10am, and I think it was out of Cleveland or Columbus or Akron.

I'd be amazed if this program originated in Ohio with a hostess saying such things about products and employees from that state. But could be. Incidently I was looking around the lot of a Chevrolet/Cadillac dealer today and a woman and her husband were there. She intends to get an HHR; thinks they are really neat. Her husband works for a dealership in Ohio and has some GM product; 91 model I think with 331k miles on it. The woman's father has had 61 new GM cars. Is that a record? He worked for GM. I'd call that doing his part. My uncle has had 30, but not all GM. I thought he was nuts having 30 new ones.

[ghughes]

"People will not buy a percieved inferior car out of patriotic heart-string pulling".. No only the Japanese seemed to be this patriotic - since their govt embargoed US cars in the 1940s- to create their own industry. They continue to have only a 5% foreign car market share in Japan -
Facts are facts - they have beaten us and many saw it coming - they have had complete access to our dealers and markets for 50 years. It is not now our companies lack of effort, now it is lack of money - only the us govt or the bankruptcy court can solve it.

[goblue]

Originally Posted by mjd1001

To just the opposite of your point:

I was driving Saturday morning across a few states (I'm not sure if I was in PA or Ohio at the time) and there was one of those radio shows about money and saving on. The host was a woman. A caller asked about hwo to afford a different car, if she needed one and if leasing was a good idea.

Anyway, the conversation was pretty long for a call in show..but the radio host kept telling her over and over to NOT buy a new car, but if she did to look at one that would last her for 8-10 years...and recommended a Honda Civic and Toyota Corolla. The host then went on to say over and over to NOT buy a domestic. She was saying when you buy a domestic, you are spending money to simply support high salary CEO's and you are supporting huge pensions and benefits for workers that probably need less of that then the person who has trouble affording a new car.

I know many people on this board will agree with those thoughts..but I just thought it was strange to be hearing a call in show in the midwest where the host was telling the listeners to stay away from domestics because they "can't be worth what you are paying" because of how much of the money goes to employee salaries and legacy costs.

It had to be about 9-10am, and I think it was out of Cleveland or Columbus or Akron.

What the radio host forgets is GM basically loses money on the Cobalt, not much, but this has been stated many times here and elsewhere. They barely break even on midsize cars, and make money over at Caddy, Hummer, and all the trucks and SUVs.

So, just going by this argument is silly. GM could be selling for less money, losing 1K on every sale, while Toyota is making 2K on every sale. Bottom line, no evidence to definitively support what the host said.