elroy

Chrysler and Fiat's Latest Tiff: Not Unexpected, Not Good

Tony C is correct for the month of February, thanks to its strength in trucks and minivans. Looking at the top ten selling cars in Canada you won't see Chrysler -- which is rationale for the Fiat deal.

I'm just not convinced the Fiat deal is a good deal. Let the German government loan them 20%, the Italian government 35% and the US government the balance and I'll come onside.

With industry volumes running at approximately half of the normal volume, the last thing that this industry needs to get healthy is more vehicles coming into the US marketplace.

Even worse, our tax money is going to fund the importation of these vehicles. Since we already have overcapacity here and sales volumes are so limited, every imported vehicle displaces a domestically produced one. Thus we are going to be paying to put our own auto manufacturing people out of work.

At a macro level, I just don't understand how this makes sense for the US.

Chrysler and Fiat's Latest Tiff: Not Unexpected, Not Good

If you take the time to delve deeper into the proposed Fiat models that might (no promises) be built in North America, there's only two or three with any potential volume and they would be built in Chrysler's Mexico Touluca plant, not the US.

What will happen if we give them money is that Fiat will export their Fiats and Alfa Romeos to US, Chryslers's car plants will still close, and the best case scenario has the majority of the new Chrysler-Fiats built in Mexico.

If it does work, then the majority of the profits go back to Germany and Italy....

Tell me again why this is a good deal.

Chrysler does have some valuable assets and brands. They were supposed to build the next generation of Nissan trucks, so sell them the truck division. GM could use the minivans since it doesn't have any right now. Jeep/Hummer should be a viable joint venture -- two great off-roading names together.

Liquidate the rest and the US automotive marketplace gets stronger.

As GM Goes, So Goes the Nation (Part 2)

The big thing here is the health care stuff......what is the US going to do as a nation? The costs are crippling US industry and damaging the US economy. If we continue to lose manufacturing, we will all be working to support the sale of Chinese goods in Wal-Mart and dollar stores...

We need to fix the fundamentals of the business climate in the US which will fix the auto industry and provide fertile ground for manufacturing and industrial growth.

Is GM's Worker Buyout Offer Insulting?

Yeah, the world is schizo!!!!

First they criticize D3 for having too many workers then for trying to get rid of them through buyouts then by not offering them enough in the buyouts....

I don't know if the UAW contract allows them to just sever them, but aren't there state laws that would kick in here if they did and give the workers money too? If so, there is no easy way to downsize....

The Bailouts Are Doomed - All of Them

Although they might take exception to my comments, it is obvious that our elected representatives are more interested in being elected representatives more than anything else. They are certainly not fiscally responsible to the US taxpayer.

There are too many lobbyists and too many are afraid to stand up and make the right decision for the country if it impacts their chances of re-election negatively.

There are too many ammendments to bills which cater to particular members of the senate and congress in order to get their support.
These are the tax loopholes that Obama promised to eliminate in order to put the government on a sounder fiscal setting and to fund tax cuts and other incentives.

Time for a fundamental change.....how do we do this?

Bust-Up, Not Bailout

This article proves a little ignorance goes a long way.

Design lead times are also impacted by government regulations and validation requirements...nothing to do with the automotive companies and size.

Brands have common components and are built in the same factories for economies of scale and can't be spun off in the manner stated. This isn't just the Big 3 -- Honda/Acura, Toyota/Lexus, etc.

This article is just journalistic drivel.

Why the Detroit Bailout Should Include Bankruptcy

It's been an unfair playing field for years and the Big 3 haven't enjoyed the support that Japanese and Korean automakers get from their governments.

It isn't just the automakers that you're talking about -- its the millions of other jobs associated with the industry in the steel industry and parts industry, Yeah, the assembly jobs may go to Honda or Toyota ... largely with imported parts and the US is still a net loser.

Do really think that the US economy is stronger losing all it's manufacturing jobs? How many dollar stores selling Chinese goods do we need? What do those jobs pay?

In bankruptcy, companies can cut wages and benefits for retirees to get healthy -- all American of course. Obviously you're not one of them!!!!!

GM: Charging Forward with the Volt?

Volt's success hangs on battery technology .... if the batteries are there, then GM will build it.

Other options currently in the marketplace -- like the $20,000 worth of bundled laptop batteries for the Telsa -- are not practical.

Auto Stocks: Value Investments Gone Wrong?

Debt = risk.

Risk is rewarded with potentially higher returns.

In and of itself, debt doesn't make it a bad investment. Back in 2004, the truck business was still running at flank speed. Whether debt is bad or not depends upon the three intertwined cycles -- overall market, industry and company. Back in 2004, all three were favourable. Now, the first two are unfavourable for all, but the company perspective -- products, etc. -- are very favourable for Toyota and Honda.

Why are Toyota/Honda so debt free? Good management? Good products? The answer is yes -- but that's not the whole story.
The Japanese protect their industries and the companies based there have a profitable home market from which to build a world market.

Korea is even worse.

If the US is to ever become an industrial power again, it must have the same trading rules as it's partners -- whether it be Japan, Korea or China. This should be a major issue in the presidential elections, but obviously no candidate understands it.

Sharing Speculative Interest in GM

The notion that GM management is solely the blame is conclusion of the ill informed. The North American market has been quite different than in almost every other developed country in the world. A year and a half ago GM's truck plants were working on maximum overtime and Toyota Priuses had incentives on them (check it out if you don't believe me).

Toyota and Nissan recently entered the full size pickup and SUV markets in force, spending billions in the process, and they are suffering in these segments too. Luckily, they have to have a broader portfolio of small fuel efficient vehicles thanks, in part, to a protected home market in Japan. How does this help? They are able to develop and sell fuel efficient vehicles profictably in guaranteed volumes and not be subject to the fickle swings of the American consumer.

Take a closer look at GM/Ford/Chrysler vehicles on a value, fuel economy or other basis -- especially the latest ones like the Chevy Malibu, Ford Flext or Cadillac CTS -- with their Japanese competition and you will see that they compare quite favourably. Maybe all the product line up is up to their standards in all cases, but it still competes favourably. It's American's perceptions that are doing the Big 3 in and some of these are based on old facts or information that isn't current.

Auto Sales Are Cause for Optimism

Certainly GM would be a stronger company after Chapter 11 but that would be at the expense of all those people who worked for them over the years. The loss of all those pension dollars and medical coverage would hurt them and the US economy.

It's too bad the US gov't doesn't work to protect its industries (not just auto) like Japan and many other developing countries.

If GM can survive a few more years without Chapter 11 -- they have some great cars and crossovers now, with more in the pipeline -- and their truck line up with the new hybrids is strong too in case the market picks up -- then there is a bright future. There is the more competitive wage rates that they negotiated with the UAW and at some point. A importantly, their legacy costs will go down as people die and the newer companies like Toyota and Honda are going to start having legacy costs too!

Impact of GM Destroying the EV1

I haven't seen the documentary but plan to. I am sure that there's more to the story than the "Big bad GM angle" that gets played out constantly. If there wasn't, then there would be millions of Honda Insights on the road since GM gave up this segment of the market.

Our governments -- unlike the Japanese, Korean, etc. -- do more to hurt industries than help. Most of the manufacturing jobs have gone overseas -- you'd think that someone would wake up here and try to help keep the ones that we have!!!