Friday, November 21, 2008

US car makers told to submit new recovery plan

As has now been quite well reported the car makers of the USA did not impress and have to comeback a little better prepared than the last effort.

Clearly the big two GM and Ford are also very important to Australia and indeed our Government has put up a few bucks to help out. Must say I am not quite sure where Toyota sits in all this but again Australian Car Making is very much reliant on the Japanese Giant, and they have also shared in the generosity of the Australian taxpayer. In fact Toyota appear to be weathering the storm better than most.

I would however like to extend my sympathy, in some small part at least, and suggest to the Congress that when the car makers return to the table that perhaps the Unions better be sitting alongside with cap in hand as well. I fear there is not enough said about the role they have played in bringing the industry to its knees.

Hmmm, I wonder if the leader of the House will subscribe to my Blog.


willowtree said...

I take your point and, to a large extent, agree with you. However, it wasn't the unions who decided to take huge, short term profits over long term sustainability by focusing on large gas guzzlers to the detriment of smaller fuel efficient vehicles.

Nor was it the unions who decided to use vast sums of money for executive bonuses, instead of re-investing them into R&D.

Certainly the unions have added to the overall cost of production, but given that all three Manufacturers have squandered their workers' pension funds, thereby leaving their former employees virtually destitute, I think the Auto Makers should be forced to face the music on their own.

JimBob51 said...

WT it has been an overall mismanaged situation for many years. The American big business method of deciding that growth must be a certain percentage per annum regardless of considering true market conditions and or requirements must stop now.
This has been evidenced by the lack of desire to seek alternative powered motor vehicles and continuing down just the Big Gas Guzzling path.
Vested interests must come to the table in my opinion with an agreed strategy on the way forward - then Government support actually has some meaning and purpose.

Unknown said...

I'm not sure how detrimental a role the union played in the downturn of the US car industry, General Motors (GM) and Ford.

I'm convinced though that the 21st century car industry have to adapt to new technologies, changing needs of their customers, become aware of and address the issues of environmental pollution and climate change.

I hope the US car makers' new recovery plans take on board all these relevant issues - not just the US issues but the global effect of their plans.

JimBob51 said...

Abi - hear hear. The congress was right - do not turn up just with your hand out - it is not a pot of gold at the end of the rainbow. Well said.

Jerry said...

I would like to see them go through the reorganization of Chapter 11 bankruptcy. Most of the losses are on paper because they over commit to unrealistic sales goals. The problem with most of this is they spend to unrealistic goals and when they fail to hit the number they call it a loss. The unions are also at fault because the task they do is over compensated. Why is it that we have so many independent builders here who have created hybred and or alternative fuel cars and the big three are still 5 to 10 years behind the curve with multi million dollar annual research budgets?

JimBob51 said...

Whew - Chapter 11 - gutsy stuff