The problem with US automakers
The poster child of denial?As I've browsed through the news today, one headline stuck out: When pickup sales dived, automakers changed plans. The article explains how Ford (and GM) realized, way back in May, that small cars and fuel efficiency might be the keys to survival.
May, 2008? Hello? 9/11, War, Katrina, and you didn't believe the dangers of foreign oil dependency might force change until May, 2008?
A few months ago, a source inside GM told me that $3.00+ gas prices had been forecasted as a possibility by GM years earlier. Coupled with Toyota' hybrid success, this forecast moved GM to begin working on the Chevy Volt. That and Bob Lutz couldn't tolerate a company like Tesla beating GM to cost-effective electric vehicles. Of course, that didn't make large vehicles any less important.
The fact that it has been largely impossible for US automakers to steer away from such a heavy focus on large, fuel-inefficient vehicles - despite the obvious evidence - begs the question: What is wrong with US automakers? Certainly, cheap gas, the UAW, healthcare costs, etc. didn't make the job of change any easier, however, can these issues really justify such denial?
Labels: Foreign Oil Dependency
posted by Dahcredyns at
9:11 AM
4 Comments:
What is wrong with GM may not be "wrong" for much longer.
Today's news revealed that GM's market cap is only $6.5 billion.
In comparison, Toyota's market cap is about $165 billion.
When GM's market cap drops to about $5 billion, someone should buy and put it out of its misery.
Good riddance!
Keeping things on an even playing field regarding the infusion of hybrid vehicles into the American market I thought I might share my experience purchasing one. 6/14/08 I purchased a '08 Saturn Vue Greenline Partial Hybrid. My company car is a '07 Prius HSD full Hybrid. I have spent many years researching and using this technology and with the rising cost of fuel in the US and my personal need to replace my aging 2001 Pontiac Grand AM 4 cyl with 145K miles it was time. The Toyota Prius was a great choice but the cost and availability were hurdles. Ultimately the ride comfort and cargo capcity were the deciding factors for my choosing the Saturn Vue. After only 600 miles this is a decision I am regreting. I am writing to the New York New Jersey Attorny Generals about this matter for possible "Lemon Law" enforcement.
Do not invest in this company's product. Saturn Engineers and Technicians are out of touch with the American people and the customers they presumably design these cars for. There is a critical unexplained programing glitch in the software controling the many modules that communicate their information to the main computer control unit. When the modules don't communicate to the main computer the system starts to disable certain functions including safety functions and sends error codes and lights flashing on the dashboard. Dealership mechanics go through their service tree and ruling out physical causes resolves the issue by reprogramming each module. Then they must reestablish the hand shake between the module and computer.
As a consumer my question is why is this happening and can it happen again? No one has called me to explain those things to me. A vehicle is a major investment and it behooves Saturn engineers to step up to the plate, come out of their ivory tower and explain to customers what is going on. It is no wonder American car manufacturers can't compete. They want to make junk and expect Americans to buy it while they peddle other wares in countires like China. I don't have sympathy when manufacturers like Honda, Toyota, Mitsubishi and Hyundai beat the pants off of the Big Three.
Wow, Augie, that's terrible. I'm really sorry to hear about your problems. There is nothing worse than buying a dud. When I was kid my parents bought a Bronco II and it was also it dud, it gave us problems for many years. I truly wish you the best of luck and hope this problem gets resolved.
Indigo Incarnates
Well, GMt isn't the only ones who know how to make cars with design defects. My Civic Hybrid blew a catalytic converter every 30,000 miles. The IMA quit at 137,000 miles.
Now, Honda has fixed the design defects in later iterations of the HCH, but there's nothing diefic about the Asian manufacturers.
I'd still buy another hybrid for my next car. But I won't automatically assume Asian cars are perfect and GMt is junk.
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