Sunday, May 17, 2009

American Automakers

I'm sure everyone knows of the troubles of the American Automakers, if you don't its probably because you have been living in a cave for the past several months.  Just in case you don't know here's where we stand, for the past several years the Americans have let the Japanese automakers destroy them in everything.  So the American automakers sat around and watched and then decided they should start building a better car and they had better do it fast. Well they did build the better cars but was it too late?  It appears that it may very well be too late.  The Chevy Malibu is a better car then a Camry, Accord and Altima, in my opinion.  The downside to this great car is that Chevy built a really bad car for several years and made everyone who had one go buy something Japanese.  The claim I make about the Malibu is a big one because I am a huge fan of Toyota, Nissan.  I'd probably be a bigger Honda fan but I don't sell them.  

Despite the poor quality in the American cars I blame the unions for the down fall of Chevy, Chrysler and Ford.  Is it really necessary to pay a janitor $80 to $90 an hour with benefits and retirement.  I don't think so.  I'm not knocking this profession by any means but I don't think its a $80 to $90 an hour job.  General Motors is the only company in the world that pays more people retirement the active employees.  Who was a sleep at the wheel when the contracts were negotiated?  Toyota has a plant in WV with the highest paid employees making under $20 an hour.  Yes there is a big difference but so is the job security that they have.  They know when they go to work their job is going to be there, so that's worth something.  Now due to the unions we will more then likely see GM follow Chrysler and file bankruptcy.  I think the main reason for this move will to be to break the union and renegotiate contracts.  

Obama has managed to step in and do nothing to help this cause as well.  I don't know much about Obama's past as most don't but I don't think he ever had anything to do with the automobile industry.  So why is he coming in and making people resign.  Rick Wagoner was forced to step down by Obama.  Rick Wagoner had only been in charge for 3 years and I realized that he had lost money all 3 years but it was bad before he ever got there.  He just took the fall for several years of very poor decisions.  Now they have a career number 2 running the company.  Way to go Obama.  Here's an idea for you, just keep on campaigning.  Call the White Sox up again and have them take another tour of the White House for not accomplishing anything, just because they are from Chicago like you.  Leave the cars to car people and go play H-O-R-S-E with someone who cares.

Another down fall to the American automakers is the small car.  I understand everyone is worried about global warming but I think we can do something to help this other then driving golf carts every where.  Americans like big cars, SUVs and trucks.  How many families of five and six riding around in a Yaris.  I think they are wasting way too much money on electric, hybrid, and hydrogen cell cars.  The government is forcing this on them even though it's not what Americans want.

I think the American Automakers will pull through this because if not then American will be in a huge mess.  There are way too many jobs a stake if we fail at this.  Several people only think about the factories that build the cars and forget about everyone that supplies a product that goes into the making of them.  So next time you go out look at a domestic car next time you shop you might be surprised.  

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