elcopone

The Case for Making Bigger Cars

Disappointing article by someone who clearly does not understand the auto industry.

Car versus Trucks, big versus small is an irrelevant conversation when you're not even on the buyers radar. The buyers (for many, many years already) have been telling the Big 3 that all your products are terrible, your quality stinks, styling is ugle, resale values are awful, materials are bad, technology is lacking, fuel efficiency is awful, and the dealership experience is well, let's just say it's an experience. Yes, the F-150 sells, but that is purely out of customer loyalty, not because of superior product.

The big 3 have done virtually nothing to address these issues. They do the opposite. They arrogantly say they don't understand why the consumers say these things and act this way. It's the media, it's not us. It's the economy, it's not us. It's the UAW, it's not us. It's Japanese protectionism, it's not us. If they had ANY product that the consumer actually wanted they would have no problem. So actually, yes, it is YOU. Instead of shedding brands like Dodge, Buick, Mercury, etc. that clearly have no value in the auto industry of today, they are buying Hummer, Land Rover, Saab, and Mazda. They really don't get it at all. They are a model for poor management, egotistical and arrogant leadership (not to mention plain old stupid), and overpaid executives.

Obviously I think a bailout is a complete waste of funds. The fact that only now is Wagoner's job in jeapordy, is an indictment of the entire board at GM. This guy has lived more in Washington in the past 7 years than he has in Detroit. Bankruptcy would be a blessing for GM. They need to shed brands, dealers and their managment team that has lead them here.

Ford doesn't need the money and is in better shape becuase they have wised up (somewhat) in recent years. So why should we the Gov. give them anything they didn't need anyway?

Chrysler, as far as I'm concerned if Cerberus is not willing to inject anymore capital into Chrysler (which they have), why should the government or taxpayer? They should be left for dead andscooped up in chapetr 11 as is so common in the private equity business. Oh the irony.