Friday, December 19, 2008

The American Auto industry

Why bailout America's auto industry? Their poor management styles, their poor production plants, their unions, they're all part of a never ending problem. What once was the pride of the U.S. is now the epitome of all that is wrong with the U.S. industrial industry, and shows why we no longer can compete in competitively when it comes to producing goods.

And why do people place all this blame on the car companies placing all their bets on SUVs and trucks? If the cars make money, why shouldn't car companies continue making them? Ford Focus is a very gas efficient, "environmentally friendly" car, that is one of the top selling cars for Ford, and yet they make very little money on them. (For more on that, read this: http://online.wsj.com/article/SB122669956277929471.html)

The GM Volt will be the first plug-in electric car....the environmentalists must be happy, and yet, GM is estimating that they'll sell those cars at 40k, and even at that price, they don't project a profit whatsoever. Why? Companies are not made to lose money, they are made to make money, or at least gain marketshare. Do you honestly think that GM will gain any marketshare at a price tag of 40k? 30k?

And to me, I think it's fucking ridiculous that GM is paying more retirees than employees. Not only that, but retirees are getting paid near the amount they were getting paid before. I understand the need to be supported after being retired or getting injured on the job, but there are better ways of doing it.

The president of UAW says that the big three's problems were not caused by the UAW, they're caused by the financial crisis. While I admit the financial crisis has harmed the auto industry, American or not, it's not the primary cause of this fiascal. These problems have been brewing for a long time, the financial crisis has just hastened it.

Is the UAW solely responsible? Probably not, but they are a big part of the problem. Now the government wants to intervene, telling these companies to make even more gas effecient cars...sure, let them environmentally safe cars...as long as they can outsorce the jobs to cut down on costs.