Quote:
Originally Posted by KJS
Asian automakers have to meet the same CAFE and safety standards, etc. Its the same for every manufacturer who sells cars in the US. "Legacy"? Not sure what you mean, but if legacy means doing "the same old" with "the same old" (lack of attention to detail/quality, technology, marketing, senior management, lack of dealership oversight, greedy management and unions), then you're right.
Long after the foreign manufacturers proved the could deliver quality and dependable cars and trucks that the customers wanted they got a foot hold because they avoided all the legacy issues mentioned above. Then they were smart enough to get tax, energy, etc. breaks from the states they relocated their manufacturing ops to.
"Loyalty". There is no loyalty - any where, any more. Not in pro sports, not to a brand, not in any industry. Employees putting in 20+ years to a company and getting laid off (including GM!), where is the loyalty? On the other side of the coin, do you keep someone when clearly there is no work just because he's been loyal for 20+ years? There is no clear or best answer, but do not play the loyalty to "American Manufacturing" card.
Yea, we've heard that money foreign manufacturers make goes to the corp headquarters overseas. And American auto manufacturers profits go to...oh that's right, there are no profits - they're asking for a GOVERNMENT BAIL OUT! FROM OUR TAX DOLLARS! Over half the components put into "foreign cars" sold in the US are "Made in America", so they are employing hundreds of thousands of Americans. They're paying taxes.
GM is a bloated monolith. Its senior management is insular and out of touch with reality. Taking corporate jets to a meeting for a government bail out - perfect example. It has failed because of its size. Its too big and has failed to change, failed to control their front men, the "dealerships". And like any other organization that fails to recognize change, respond to it, respond to their customers, they will be replaced by those who can. Its called the survival of the fittest. Its as basic as that.
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how do you not know what legacy costs are...please don't address me if you don't know the facts...
unfortunately about 30 to 40 years ago gm had a pretty big marketshare and the management never foresaw competition that would occur decades later
so horrible agreements were made with the unions who are practically run by tony sopranos where workers would be paid for not working for almost the rest of their life...theres a program where if you get laid off you get paid almost your whole salary until another job somewhere else opens up
anyway bottom line this alone makes the avg cost of labor for gm to be double that of toyota and the other foreign competitors...not to mention gm has to pay tariffs in japan and in other places while they don't pay any sorts of tariffs to sell here...
then you combine that with c.a.f.e (if you noticed i never said c.a.f.e. was the only standard) and you've got an escalating issue which puts gm in a tradeoff bind where you either cut quality or the price...and throughout the 70's and 80's gm cut quality to keep their price in line with their competitors...
like i said every industry that is in trouble you will find it to be heavily unionized...and please watch that video i posted...ms bartiromo is one smart analyst and owns that union boss guy
the solution was to go bankrupt way back in october and null and void their contracts and restructure the right way before all these "car czar's" started calling the shots you know telling them to close dealerships and having the gall to fire their ceo's without a peep from the actual chairmen or stockholders input...
i'm just sick of misinformed people with mismanaged facts and misleading headlines blaming gm for all of this
it was never an even playing field and they've done a hell of a job making quality products for the past decade even with all the artificial obstacles put in their way
i apologize in advance if i offended anybody but it is what it is