QUIKAG

To my knowledge your intelligence isn't in question either. I was referring to Stack having his spell checker turned off.

Reality is dictated by many factors, including one's own perception of what exactly is reality? Is Santa Claus real? Just because you can't touch something or don't currently own something doesn't mean that you don't have strong feelings toward or against it.

I believe in many of GM's products, just as I think Honda and Toyota put out good products. I just feel that many people discount GM too much and put too much faith in foreign products. I am objective in my assessment of what to buy, sometimes I buy American, sometimes I buy foreign.

sam_spider

I'll agree with you on that one. I just wish the fit and finish of the domestics was better, mainly on the interior.

brockLT1

good article there sir! very interesting!

not only is GM betting on fuel cells, but more importantly, ethanol! i think betting on ethanol of the short term is the right idea (it costs some cars 300$ to convert to ethanol which pays for itself in good time and most cars can be converted), but also researching fuel cell technology for the long run.

a good read: http://en.wikipedia.org/wiki/Ethanol_fuel

my bet is GM will come out on top with its R&D related to ethanol. just look for the yellow gas caps.

Chris Stack

What were the geopolitical forces that affected GM, aside from the Oil Crisis (which should have come as no surprise to GM, since already small, fuel efficient cars like the Beetle were already pretty popular)? I mean, you say "market forces" but isn't it the Big Three's job to read the market and see where it's going, instead of just producing what they think people should buy? It wasn't just fuel efficiency that started the big three's downward slide. IMO, they have no one but themselves to blame.



PS, yeah, sorry, I misspelled one word. That qualifies me for MENSA candidacy around here.

WhiteS2k

I am not an accountant, but this is an interesting observation, and I wonder why that is the case. In today's global economy, if the domestics and Japanese (and some Koreans too) are all building their cars in the same countries, why does it cost less for the Japanese? And if the Japanese (and Korean and Chinese) can do it, why can't the domestics do the same as far as cost is concerned?

Chris Stack

Domestics are UAW plants, "imports" are not. UAW demands ridiculous concessions, wages, and benefits. "Imports" apparently pay fair wages/benefits, and in return, their employees don't unionize and enjoy more job security, rather than less.

slicksilver

I wonder how many Mercedes Benz and BMW vehicles Toyota ripped apart when they were initially starting up the Lexus brand.

QUIKAG

I don't want to blame everything on the UAW because GM management agreed to the concessions in the first place. However, take just a grand of that $2,500 in HEALTH care cost and put it in the interior and you see why GM has to cut corners SOMEWHERE. Unfortunately, interior fit and finish is one of safest (literally) places to cut costs, but it's also one of the most visible.

The new Impala, C6, STS, etc. show that GM is trying to put some money back into interior fit, finish, material quality, etc.

QUIKAG

It wasn't necessarily big, macroeconomic events that dictated the Big 3's fall from power, it was many small mistakes and competitive disadvantages that added up over time. Hindsight is 20/20, but I think the Big 3 did sit on their laurels a bit too long, but even when they wanted to fight back, they had at least one hand tied behind their back the whole time.

Foreign government subsidies, labor and material inputs, copying and improving all favored foreign makes at the expense of domestic market share. The aforementioned oil crisis allowed the foreign makes a foot hold and they capitalized on their success from that point forward. It's a sad story and I'm sure it makes for more than one case study at MBA schools around the country.

You can blame the Big 3 for not reading the market or believing that they could dictate what the consumer could or would buy, but you'd be selling yourself short without looking at the whole picture.

Silverstreak HX

[QUOTE=QUIKAG,Feb 21 2006, 03:01 PM] Last time I checked, people were brainwashed into buying theoretically superior quality products from overseas filling the coffers of foreign corporations and wreaking havoc on the trade deficit.