1st Dec 2008, 10:18
Thank you for speaking the truth. This does not get talked about a lot, but it is a fact.
By the way, the US automakers are not asking for a "bailout;" they are asking for a loan. Unlike the the banking industry, who are getting HANDOUTS to use however they please, the government wants to step in and execute a hostile takeover of the auto industries for their nowhere near as massive LOAN.
I do not support the government giving money in either bailouts or loans to any company or industry. It is not their role. But even still, the contrast between how the government treats the manufacturing industries versus the special interest industries (e.g., banking industries, pharmaceutical industries and military industrial complex) is mind boggling. It is equally mind boggling how the government stacks the deck against US manufacturers versus foreign manufacturers, even subsidizing the foreign companies while placing crippling restrictions and obstacles in the way of US companies, as mentioned by the previous commenter.
The following article explains how buying Japanese and other Asian products, even those assembled in America, is totally destroying our country:
28th Nov 2008, 19:01
I assume you're as perplexed as many as to how a company like Ford, Chrysler, and GM can outsell imported brands and still be close to bankruptcy. The explanation is simple.
First of all, the Big three factories are concentrated in the upper Midwest if the US. They've been there since their beginning, and in that time, Unions and various labor organizations have basically incurred an enormous expense to these companies in the form of high wages, which isn't a bad thing except that Toyota can make a car in KY and pay their workers a lot less. Additionally, states like Michigan have extremely high corporate taxes. Once more, it's more cost effective to do business in "newer" manufacturing states. Thus I'd suggest that if the big Three go bankrupt, they should severe ties with Unions entirely. Additionally, they might consider relocating to cheaper states.
Secondly, the Big Three are somewhat inefficient when it comes to their plants, distribution, and Dealer networks. This causes even more costs.
Bottom line: the big three have been functioning on very thin margins for years. All it took was a fall in sales to topple them over. If they survive, they're going to have to become leaner, more efficient companies.