NBC REPORT.....US AUTO INDUSTRY AT A CROSSROADS

JoeG · #1 01-25-2006, 05:18 PM

Ford has to lay off approximately 30,000 jobs closing some 14 facilities
Patriotism has been replaced by the bottom line....
In 1995 the US auto industry had 75% of the American market to themselves, last year in 2005 that margin shrunk to 60%..
Toyota has captured a big chunk of the market thru quality control and hi-tech cars.
Chrysler has made up some of it's lost market share thru the 300 platform...
Toyota has 29 US Auto plants called transplants---They employ young non-union workers at less pay and Toyota keeps putting up auto plants as US Auto plants close their doors-----Even if the US Auto industry makes a car to compete with Toyota--They'll never be able to build one as cost effective as these Toyota transplant plants
The UAW UNION is being looked at by the Major US auto industries as far as possible reductions in retirement packages and benefits ......
The playing field is in favor of TOYOTA....Just thought you'd like to read this....

Chevy454 · #2 01-25-2006, 05:52 PM

[ QUOTE ]
Toyota has captured a big chunk of the market thru quality control and hi-tech cars.

[/ QUOTE ]
Here's one for the "Take it for what's it's worth" department, but...

I read a report some time back about build quality and reliability and such...I think it was JD Powers or something...anyway, GM had actually closed the gap and even *surpassed* the usual heavy hitters of Benz, BMW, Lexus...in fact, the report hammered Lexus pretty hard as it had moved considerably down the list. Anyway, while GM's quality and reliability has come a long way, the problem lies in the *perception* of prospective buyers...consumers automatically assume a Lexus or Benz is gonna be more reliable or trouble free than a GM, even though some reports/surveys prove otherwise...the off shore makers have simply raised the bar and forced the domestic brands to either sink or swim.

I wish I could find the article as it was a good read, and was critical of GM *not* because of it's build quality but because of it's lack of efforts at changing the perceptions of consumers.

**Jeff H** · #3 01-25-2006, 06:16 PM

Great point Rob. The current perception of GM is amazing and GM isn't doing much marketing to change it. Even if the quality was identical to imports, most Americans would still want the domestic product to cost 25% less than the import before they would buy it. But consumers will baby and pamper their imports as they praise them, but at the same time they will abuse their domestic vehicles and complain. They need to change the perception of what is really happening with the vehicles to recapture market share. I'm a Chevrolet guy and always will be so if I go to buy a new car it will be a Chevy. The problem is, I don't buy new cars very often so I can't really help GM. I keep thinking it has to do with some really poor management and bad decision making in the upper ranks.

**PeteLeathersac** · #4 01-25-2006, 06:21 PM

We're all at a turning point in the North American Auto Industry for sure. . Don't forget Canada is part of this whole thing w/ the Auto Pact. . Maybe GM makes quality stuff now but the average persons perception of quality comes from experiences w/ cars made 3 or more years ago? . The General may have done well on models like the Astro Vans having recovered tooling costs long before they stopped pumping them out, but alot of people who owned them and experienced the magic of the 4.3's moved on to import stuff and will never return to the fold again. . I'm sick about it all and we're in for worse troubles as the Chinese Auto invasion is yet to come. ~ Pete

Kim_Howie · #5 01-25-2006, 06:25 PM

I said this 25years ago. It's hard to buy a car that cost 12.00 an hour when I am making 6.00 per hour. The cost to build a American car vs Jap car is the problem.

Canucklehead · #6 01-25-2006, 07:56 PM

I've had my Ford ranger for 10yrs vertually trouble free. I would stand in line to buy another one anytime. Even though im a chevy guy, when i checked whats out there the ranger was best in it's class.

**PeteLeathersac** · #7 01-25-2006, 08:11 PM

[ QUOTE ]
I've had my Ford ranger for 10yrs vertually trouble free. I would stand in line to buy another one anytime. Even though im a chevy guy, when i checked whats out there the ranger was best in it's class.

[/ QUOTE ]

But isn't your Ranger really a Mazda w/ badge engineering?

~ Pete

JoeG · #8 01-25-2006, 09:10 PM

[ QUOTE ]
[ QUOTE ]
Toyota has captured a big chunk of the market thru quality control and hi-tech cars.

[/ QUOTE ]
Here's one for the "Take it for what's it's worth" department, but...

I read a report some time back about build quality and reliability and such...I think it was JD Powers or something...anyway, GM had actually closed the gap and even *surpassed* the usual heavy hitters of Benz, BMW, Lexus...in fact, the report hammered Lexus pretty hard as it had moved considerably down the list. Anyway, while GM's quality and reliability has come a long way, the problem lies in the *perception* of prospective buyers...consumers automatically assume a Lexus or Benz is gonna be more reliable or trouble free than a GM, even though some reports/surveys prove otherwise...the off shore makers have simply raised the bar and forced the domestic brands to either sink or swim.

I wish I could find the article as it was a good read, and was critical of GM *not* because of it's build quality but because of it's lack of efforts at changing the perceptions of consumers.

[/ QUOTE ]

That is part of the problem that was mentioned in the report Rob, that it's not gonna be enough for the US auto manufactures to bring their quality control up, which they have, but they will have to surpass the foreign auto makers to convert back the market shares they lost..............It's gonna be tough for US Auto manufacturers, as it stands right now, with these foriegn car transplant facities low production costs vs US Auto plant production costs......

**Late BrakeU2** · #9 01-25-2006, 09:51 PM

Ray Charles could have seen this one coming,why do you think they were snapping pics of everything in sight?

The big three thought denial was a river in Egypt,sat on their hands,and had their pockets pickeds slowly since the Reagan Administration.Pretty pathetic actually.

The good thing is with the Camry entering Nextel cup in 07 it will backfire due to jingoistic pride and all will be right in the kingdom

JoeG · #10 01-25-2006, 11:11 PM

Denial is a river in Egypt..

When I was in my late teens I was seeing a girl in South Jersey, and she would kid me about how I would always lock my car door---They didn't lock their car or housedoors---Different times .....As is the US open door policy....It needs updated safeguards.....I'm off my soap box..