i think that a lot of the criticisms of the big 3 is irrational. their business isn't as sound as the japanese automakers, but it's just a matter of time until the japanese ask for their own bailout.

then people will realize that main problem is that people aren't buying any kind of cars, and that the big 3 fell first because their business is just a little bit worse than the japanese.

Very true. Sales are down across all automakers.

It's just that over the past 10 yrs or so the japanese have addressed the north american market needs better than the american manufacturers.

That, and the past 2 yrs of financial crisis came in like a tornado, fast, furious, and all encompassing.

Japan is also officially in another recession, btw. We'll see what happens.

unsold foreign cars pile up in american ports

http://www.nytimes.com/20...s/economy/19ports.html?hp

It's also the price of labour the US automakers have been paying due to union rates.

the big 3 spend around $70 per man-hour; the japanese auto makers spend ~$40. that's a huge difference.

GM, Ford, and Chrysler have also lost a lot of credibility due to poor reliability and resale value. Part of people not buying their cars is public perception - but that's also something to blame on the company as well.

the big 3 spend around $70 per man-hour; the japanese auto makers spend ~$40. that's a huge difference.

With how many people are employed by the big 3 imagine what would happen if you slashed those payscales to make them relative to the japanese. How many $$ does that equal being pulled out of our economy? How many people don't get flatscreens for christmas et al?

im glad i only drive peugots

boost and i both drive red mazdas, although mine's not quite as sexi.

*high five!*

Seriously though, it doesn't seem wise to bail out any company. I think letting each industry adjust to, and take the brunt of the current market will be best in the long run. If an industry wasn't meant to be, it shouldn't be artificially supported.

I was just in a 2 hour lecture by Dennis DeRosiers in TO last week. Interesting stuff on "Detroit Three", no longer referred to as the "Big Three".

He was convinced that they were all turning a corner, shaving overhead, streamlining all facets of the business, more competitive products etc. This market collapse seemed to just hit them at the wrong time.

I am all for the "bail out". But not without a well laid out plan of attack. As noted, ALL automakers are facing challenges, but the American companies were just trying to right the ship, then the markets collapse.

DesRosiers answered my question of if it was a good time to buy stock in the American auto manufacturers, and he said he would, if he was allowed to.

396783602 people weren't dependent on jobs created by horses. moot point.

quote:

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I am all for the "bail out". But not without a well laid out plan of attack.

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agreed. the BIG problem is that everything i've heard more than suggests that the Detriot Three don't actually have a plan - they're just asking for more money to continue operations.

i can recall driving a ford mondeo hatch in europe many years ago, built in belgium. that car was 10 times better than any ford i've driven in north america. i don't get it.