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Old 09-10-2008, 09:33 PM   #1
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Great WSJ article on the failures of detroit

Yep you guessed it...over regulation....

http://online.wsj.com/article/SB1221...ays_columnists

i found this excerpt really interesting....

"It must infuriate the auto makers how readily their critics attribute their problems to their own incompetence. Then how to explain that GM is thriving in Europe, selling small cars that get lots of miles per gallon? Buick is among the biggest selling brands in China. GM is running away with Latin America.

The Big Three's problem, to be blunt, is North America. They should have pulled out long ago.

Not only did history saddle them with a UAW labor monopoly that their foreign competitors have managed to avoid. Even that might not have been fatal had Congress not enacted its "corporate average fuel economy" rules in the 1970s.

Look at gallons consumed, miles driven, barrels imported or emissions emitted: CAFE has had no significant impact on energy consumption. Its sole practical effect has been to inflict on Detroit the need to produce, with high-cost U.S. labor, millions of small cars designed to lose money.

CAFE has to be the most perverse exercise in product regulation in industrial history. It confronted the Big Three with the choice only of whether to lose a lot of money, by matching Toyota and Honda on quality and features; or somewhat less money, by scrimping on quality and features and discounting, discounting, discounting. Rationally, they scrimped...."

I believe we should be thankful that the camaro came out so amazing....thank you f-bod and gm for not scrimping on the camaro in the least bit
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Old 09-10-2008, 09:46 PM   #2
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Freaking ridiculous.
If there was any sense left they would repeal CAFE.
It's like they're trying to kill American cars...IN AMERICA!
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Old 09-10-2008, 09:50 PM   #3
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Freaking ridiculous.
If there was any sense left they would repeal CAFE.
It's like they're trying to kill American cars...IN AMERICA!
I kid you not...its like we are being run by commies...

carmakers will react to the market if the market is demanding higher mpg cars...government shouldn't force certain guidelines since they have never built a car not know how to build one...

and i won't get into the unions but detroit is paying more for their retired workers than their current labor force...thats just backwards thinking and the contract with the union was probably done by ceo's who knew they were going to retire and wouldn't have to deal with that problem in the future
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Old 09-10-2008, 10:41 PM   #4
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Its not so much that the politicians want to destroy Detroit per se. They simply want votes. They can get votes by promising more and more fuel economy regulations, because the average consumer roughly believes that fuel economy is just a number that is programmed into an engine. Regulations call for 100 mpg? Why all the engineers have to do is type in 100 into the engine control computer and it will do that. So to win the votes from those people, all the politicians have to do is outbid each other on CAFE regs. If Detroit has to go down, well thats the price to be paid to keep our swell politicians in office.
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Old 09-11-2008, 02:56 AM   #5
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Just remember this country is SUPPOSED to be run by the people. Make your voice heard and the Govt. will have to fall in line.
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Old 09-11-2008, 03:11 AM   #6
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Yup

Quote:
Originally Posted by TheClassicCarKid View Post
Freaking ridiculous.
If there was any sense left they would repeal CAFE.
It's like they're trying to kill American cars...IN AMERICA!
+10
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Old 09-11-2008, 05:19 AM   #7
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We are headed for socialism, the government is taking our power little by little. bail outs and take overs, whats next..airlines...the big 3? CAFE is BS, they might as well take hot dogs and baseball while their at it. When election time comes we get to vote for a Dbag or a turd sandwich... true story
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Old 09-11-2008, 05:36 AM   #8
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People will buy what they want... the Government is forcing people to buy what the enviromentalist wackos want them to buy. I thought this was a free country at one time... It has gotten so ridiculous that people now cannot fend for themselves and ask the government to help them out no matter what the problem....

My house blew down in the hurricane....Please washington build me a new one...
I can't make my 300,000 house house payment... Please washington make them let me pay less...
My SUV only gets 10MPG... Please Washingtom make the automakers make my SUV get 50MPG....

Gee, Washington didn't make you buy those things YOU DECIDED TO BUY THEM.. Don't ask Washington to help you out of your own mistake...

IF my house gets struck by lightening and burns to the ground should I ask Washington to rebuild it or give me a place to live??? Why should the people that choose to live where hurricanes are known to come in expect it??

If you bought a $300,000 dollar house and then can't make the payments, why expect Washington to come along and help you?

YOU bought that 10MPG SUV nobody forced you to buy it, so now why should the government force automakers to make only cars that get 30+ MPG...

I am sick of Washington telling me what I can and cannot have and also that I have to pay for someone elses mistakes...
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Old 09-11-2008, 07:13 AM   #9
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In the SF bay area I know the homes thing is different.

houses here start at around 700k. People get the amazing interest rate loans, then have the loans sold to another company and all of a sudden have to pay up to and exceeding twice as much as their loan payments started at. Not all cases but at least a few of the people I know are in this position
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Old 09-11-2008, 09:15 AM   #10
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The downfall of Detroit auto makers is a combination of things; only one small part is regulation. Most of Detroit’s problems are of their own making. Years of poor quality, putting all your eggs in one basket (high margin SUV’s) agreeing to bad contracts with the UAW, and making too many brands that compete directly with each other.

Why is it that everyone else can succeed in North America except GM, Ford and Chrysler? They all have to follow the same regulations. This is why the $50 billion buyout that the once big 3 are asking for pisses me off to no end. If you can’t run your business properly you file for bankruptcy and try again. Now I do think legislators could make some changes allowing GM to close dealerships they don’t need anymore or close brands without as much cost. Other than Chevrolet and Cadillac what else does GM really need? Buick is worthless as is Pontiac. They have maybe two cars between the brands that are worth anything. GMC is just rebadged Chevy’s. Saab? Worthless. Saturn? Competes directly with Chevy. Hummer? Its already dead.
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Old 09-11-2008, 10:32 AM   #11
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This is why the $50 billion buyout that the once big 3 are asking for pisses me off to no end. If you canít run your business properly you file for bankruptcy and try again. Now I do think legislators could make some changes allowing GM to close dealerships they donít need anymore or close brands without as much cost. Other than Chevrolet and Cadillac what else does GM really need? Buick is worthless as is Pontiac. They have maybe two cars between the brands that are worth anything. GMC is just rebadged Chevyís. Saab? Worthless. Saturn? Competes directly with Chevy. Hummer? Its already dead.

It is NOT a bailout. it is a loan to "jumpstart" future energy efficient (read: CAFE standards) products.
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Old 09-11-2008, 10:42 AM   #12
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As I've said several times before, contact your elected officials and tell them how you feel. Usually, they will respond. Make sure to let them know your address so that you can prove that you are a constituent.
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Old 09-11-2008, 11:36 AM   #13
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Beesides, no one held a gun to anyones head when making a decision to purchase any particular vehicle.

I by no stretch am a fan of SUV's and behemoth pickups. But, I respect people's right to choose what vehicle they drive.

Either way, it ends up being a sign that the auto industry is in for some pretty radical change, whether we as enthusiasts like it or not.
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Old 09-11-2008, 11:42 AM   #14
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Quote:
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Beesides, no one held a gun to anyones head when making a decision to purchase any particular vehicle.

I by no stretch am a fan of SUV's and behemoth pickups. But, I respect people's right to choose what vehicle they drive.

Either way, it ends up being a sign that the auto industry is in for some pretty radical change, whether we as enthusiasts like it or not.
I'm definitely not saying that buyers should have to change, but the market has turned against Detroit. Buyers should be able to get anything they want, but Detroit needs to follow the market with its products. When more compacts are selling, it is important to lay off of larger platforms to keep demand high enough to make a profit.
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