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 12-05-2008, 11:18 Post: 158389
AnnBrush



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Join Date: Mar 2004
Location: Troy OH
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 What is your take on the Big-3 hearings

"nor put up with those little tiny engines that don't make any horsepower"

You are in the minority here - the more I can squeeze out of my gallon of gas in my little corolla the better - the rest of the US buying public seems to agree.

"The U.S. government has forced our auto-makers to build vehicles that the American public doesn't want. It really is that simple"

Not so - the foreign auto makers are making cars (in the US) under the same rules as the US ones are - they seem to be able to make cars the US customer wants.

This calamity is self inflicted and has little to do with the govt. US auto manufacturers had to make cars with big profit margins (SUV's and Light duty trucks) to stay in business as their total costs per delivered car are higher. This is due in large part to the fact that their legacy and current total employee costs (not just cost per hour) are about twice what the foreign (but made in the US) manufacturers are. When their sputtering business plan ran up against high gas prices and a faltering economy no one wanted to buy a SUV or truck. People started buying smaller economy vehicles. These smaller vehicles provide nowhere near the profit as does a SUV and so the manufacturer (already in a precarious financial position) tanks because they cant make the high margins they need to support their cost structure.

They need to file for bankruptcy - one will probably go insolvent) - and reorganize. Union jobs will have total pay packages about half of what they are now and the co's will be able to focus on selling cars people will actually buy.






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