The auto industry. tell us what you think. Be polite and informative

[vicki2x2]

If the Big 3 go under, you might as well just close the doors on Michigan. As far as I know, we still lead the nation in the highest unemployment rate right now. So much of our industry is either the auto industry or related to it. Even my husband, he is a truck driver for a demolition company! His company has the contract for taking down the old GM plants, that could come to a screeching halt.

You can't drive down a road in Michigan where one out of 4 houses are for sale and one out of 4 of those are already vacant and forclosed on and it is only increasing. Property values are dropping at an alarming rate.

If the Big 3 go under, Michigan will too. I have seen signs on moving trucks as people are leaving the state that say, "the last one out of Michigan, turn out the lights!"

That is what it feels like! The Gov't bails out banks over and over again, but not the Auto industry that employs so many and affects even more? Oh, and don't get me started on Michigans other problem, our Governor!

 

[Rosalind]

It's a tough call. I think if we are going to give them loans OR any bailouts, we should require a complete replacement of upper management. Clearly the people running these companies just do not know what they are doing. Chrysler in particular has received multiple bailouts at this point, and I think they should be allowed to die. GM may be able to turn things around with new management; their engineers seem to be a little bit more on the ball.

Is there any way to re-purpose the factories to produce, I don't know, train cars or something? My understanding is that the manufacturing plants, by and large, are assembly lines with Staubli arm mechanisms wherever they don't have people. People can be re-trained and Staubli systems can be reprogrammed. If we could make sort of unitary light rail systems that would be pre-fabricated in sections and installed quickly in areas that have no public transportation, I think that would be a better use of the space and people.

Disclaimer: I live in a commuter town outside Boston and take light rail trains to work. And I actually like it much more than driving. Yeah, really. You'd appreciate the MBTA too if you used to drive 2 hour commutes through Cleveland rush hour on I-480 in horrible weather. Public transit is a friend to exhausted commuters, elderly folks who can no longer drive, teenagers not yet old enough to drive but old enough to go to the movies on their own, and for those who had more beer than any safe driver should consume.

 

[zephyrcreek]

Well I live and breath in Michigan, so take what I say with a grain of salt!!

This country as a whole has lost way too many manufacturing jobs. I do agree that these companies have not been doing what needs to be done. I am not a fan of the auto unions, but that's a different story, but we need to maintain every job we can. I am currently laid-off from my automotive supplier job. And my husband has lost his R&D job at the same company. The biggest problems I see at the big 3 is too many head honchos making outrageous amounts of money!!!

I don't have a clue what the "right" answer is, but I do know that if the consumers buy more American made procuct, that the economy would eventually turn around. I took a part-time job at one of the big box stores, because it is the only thing I can find. It is hard to find American made products in the thousands of items that we carry. I am looking for them when I make my purchases. Hopefully others will to. This is one way to start a grass roots campaign for the American economy!!!

On the other hand, I am glad to have a chance to change the direction of my life. Leaving my job last year helped me reevaluate my life, and get back to the things that really matter. One of the top items on my list is trying to raise or buy local food only. Not only that, but I would like to help others in this quest also.

Ellen

 

[beak]

Quote:
Charlie it's the huge corporate tax rates that have sent big companies looking for places to manufacture that are more affordable to their companies bottom line. I do agree we need to get manufacturing back in America. But that's a whole other ballgame than what's going on in the auto industry. Well other than small parts like air filters and such could come from overseas but I have no real information on that.

IT'S GREED PLAIN AND SIMPLE. That bit about corporate taxes was just a talking point during the debates and an excuse to keep all the tax cuts in place. The reason almost everything you buy now is made in China, is labor costs. The corporations aren't moving to China, they're just having their goods manufactured there. They work under the same conditions Americans worked in the 1800's. 16 hour days, no health benefits, what would be the equivalent of us working for 2.00 an hr. No they're sending our jobs overseas for a much bigger bottom line. That's something that needs to change. they can live on a smaller profit. We need our jobs back.

The car companies can't be allowed to go under. You may think the execs were stupid, but they were doing well a couple years ago. The only thing that killed them was the gas spike last year, then the crash of the economy in all sectors. VW built a plant down in Tn or Ky but it is on hold right now. By he way their most expensive model is around 46k. The Tiburon. Hondas sales are down too. Even the Prius which was going for 5000 over list last year is down about 30% on sales. I for one would rather be able to buy American when it comes to cars. If I could buy American n everything I would. Try finding American products at the store, far and few between. Nobody had a problem giving the banks and Wall Street 760B. They used the 1st 360B to but up other companies and smaller banks instead of loaning more money. Then they gave themselves some well deserved bonuses for destroying all those 401k plans. That's where all the anger should be going.

 

[Mahonri]

I think its' best I don't say anything. But most of you know what I'd say already.

We can only pray at this point.

 

[gamebirdsonly]

I just thinking if they just keep throwing money to the car industry what good is it going to do when none of us can afford a new car so they won't be selling any cars so we will still be in the same predicament. If they want to give money out they should give it to the people then we will buy stuff thus making a demand for goods thus producing jobs. Anyways just my 2 cents.

 

[bluey]

Keeping companies from going bankrupt by throwing money at them is silly. They said the same thing about Pittsburgh in the 80's when the steel industry fell and you know what, the city survived and transformed. It's still a great place to live.

Bankruptcy doesn't have to mean the end of the auto industry in Michigan. It just means that the cost of labor will need to be revisited in order for these companies to survive post-bankruptcy.

If the UAW take the same approach that the steelworkers did, though, it will probably go the same way for them.

 

[beak]

Quote:
Would you buy a car from a company that is under bankruptcy? Would you want bet 25-30k that they would have parts for your car in 10 years?

 

[conradpdx]

Quote:
Problem with this is that with the economy the way it is no ones gunna spend it. Too many people would give it credit cards and banks to catch up or get ahead of there bills. Others would save it in case things for them get worse. And even if they did give you enough for a down on new car would you invest in any of the big threes products since they are teetering on going under? How attractive is that car in which your uncertain if that warranty is going to be any good in a week from now?

Just handing out the money doesn't work, or create work. LOANING (quit calling it a bail out, they're gunna pay interest) money to the big three keeps people working. And allows them to make the changes they now know they need to make to remain solvent. In the next 10 years cars aren't going to be anything like you can find on the lot now.

But there are other issues on this matter that are never talked about either. Oil prices (and not at the pump) has been a huge factor with them. Just about every part on a car is made with oil. Plastic, rubber, fabrics...all made with oil. You don't think they and their suppliers took big hits when oil was at all time highs a year ago?

Also there are people like myself that are putting of buying new cars to see what kind of technology evolves in the auto market in the next few years. Plug in Prisus, Volt, electric Minis, will zipcar emerge as a competitor? I'm not going to buy an internal combustion engine right now, electrics are on the verge of going mainstream and I'm willing to wait a few years to see what happens. And I know I'm not alone on this one.

 

[beak]

The big 3 need a big shove to get them going down that road.