by usncom » Sat 10 May 2008, 17:05:27
$this->bbcode_second_pass_quote('timmac', 'S')urly employess of these plants making these large suv's and trucks had to see this coming,, why is our big 3 auto makers still leaning on the profits from big suv's and trucks sells when they should focus on more mid size high mpg trucks and autos, why is Japan so far ahead of the big 3 in mpg's,, why are we so far behind the ball on this,,, I do think we are in 4th or 5th place when it comes to 35 mpg or better,, Toyoto/Honda/VW all have many models that get better than 35 mpg,, but a net search found 2 or 3 total from GM/Ford/Mopar that got better than 35 mpg's,, if they don't make changes fast they will all be in chapter 13 bankruptcy very soon along with the airline compaines....
I had the chance to ask the same question of a GM executive during a car enthusiast club meeting several years back. Just to let you know I am a GM fanboy of sorts but I'll try to provide as objective a reply as possible.
During the late nineties alot of performance enthusiasts were upset at GM when they closed down plants dedicated to the sporty performance cars and ramped up the plants dedicated to these big goliaths. I point blank asked him why did you kill off the sporty cars we loved and flood the market with the SUVs?
He candidly replied that there are lots of labor "lagacy costs" from union contracts that made it necessary for them to sell the higher profit margin cars in favor of the smaller or economy cars which don't carry nearly as much profit. I got the impression that it was a short term fix which satisified the sharegolders and held the union at bay until they could figure out a way from under these burdensom union contracts.
This brings us to a larger question of how far we should go to get the cheapest and most effecient products to the market. The Walmarts of the world become the sheer object of hate for those who can't stand how far overly ambitious corporate entities are willing to go to get us the cheapest and most efficient products to the market. They relied on third world slave labor and effectively have drivan the local shopkeepers out of business.
On the other hand GM is trying as carefully as it can and should to ween its workforce off of the middle class pension, pay and medical benefits that it has become so accustomed to without defaulting on its obligations to its retirees. If it means that they have to build the higher profit SUVs and trucks for a little while until they can cut labor costs and invest more money into the lower profit margin economy cars then so be it.
I do not look forward to the day when all our manufacturing plants have gone overseas in order to compete with the imports. It almost seems inevitable but I don't look forward to it becuase when that happens you can kiss a large chunk of the American middle class good bye.