It's a pretty emotional story. What to do about the "Big Three" and Detroit? Many people are convinced they should just be let out to pasture and shot, others want bankruptcy - so they can "slim down" - others want a full-blown bailout package to keep the (face it) millions of jobs tied to this industry.
They're all right to some extent, and all equally wrong.
Here's a perfect example of both. Popular Mechanics pointed out ten things wrong with GM - including the Hummer H2 and the early Saturns? - which is akin to finding hairs out of place on a model. Well, bad analogy, but yes, okay, some of those cars were absolute bombs, but reading the comments on the piece sealed what I'm saying: Most people have NO IDEA WHAT'S REALLY WRONG WITH DETROIT.
- Wall Street, bean counters and the stockholders. Have you ever bought something because it gave investors larger dividends? Of course not. That "Feed Us!" mentality has brought the Big Three to the pavement. They don't care about quality, reputation or the future of the product or a brand, they care about the next quarter's dividends - which realistically, for most of them, is a few hundred bucks. Whoopee! Let's drive 'em into the ground to save cash and bring up the bottom line! This killed Detroit as much or more than anything. Tangible companies - meaning they make something - shouldn't make decisions purely on stockholders. They are a small part of the overall picture. The bean counters forced the Big Three to make so many concessions they lost their passion, cut corners to save cash and made everything so cheap it couldn't last, hence the lack of loyalty.
- Foo-Foo trends. GM especially, and Ford as well. They built heavier and heavier trucks over the decades, requiring more and more power and hence, lesser mileage. They are SO committed to them, they can never go back. Giant SUVs, vinyl tops, front wheel drive (Yes, I said it. It's not the best way to move anything. Costly, heavy and incredibly complicated, FWD makes a flat floor and helps in the snow, but is amazingly fragile.) Remember Fords in the 70s? Giant boats with micro back seats. GM always kills their cars JUST WHEN THEY GET GOOD (Camaro, Buick Grand National, Impala police/taxi, even the EV1 was ahead of its time!). GM is known for letting customers find the problems, and using warranties instead of testing and engineering. Ditto Chrysler, which never seems to learn lessons, and has the same problems on entire generations of vehicles!
- Overblown Japanese reputation. They can make some fantastic vehicles, but they also seem to forget the American way: We speed on bad roads, hit very big bumps, pull trailers, hit the ditch a few times and like to change our own oil. Almost any of those things can make for a tough time with an import. Only now have they realized about the towing, and ever look at the body shop bill after a deer hit? Don't EVER buy a front-wheel drive car after a crash EVER! Japanese cars used to be crap. They used cheap metal that rusted before the first tune-up. They were impossible to find parts for, expensive to fix and when they did fall apart, not worth putting back to together. Some of that has changed, but in reality, their reputation is based more on JD Power and vaguely-substantiated "lists" of repairs. Hmm, if it's off warranty, who do you tell?
- Service and Dealerships. This alone is reason to let the Big Three fail. Outrageous pricing structure, awful warranty dealings, un-friendly DIY designs, underwhelming loyalty, slickster attitudes, misleading bills for routine items.
- Engineers and Stylists. GM takes the cake here. The Pontiac Aztek alone proves every previous point. They all have their Azteks: Ford's Pinto-based Mustang (nicknamed "Muskrat,") ...Star-series vans, Expedition, Lincoln's gorgeous but insane LSCs ($1,200 to fix a headlight?) and many more. Chrysler has a lot, as well: K-car-derivatives for 15 years! Even, aargh, a limousine! The Dodge Dynasty, St. Regis and Plymouth stutters.
- Sales staffs. All of them are so bad, they deserve ragging upon again.
- Clueless CEOs and administration. They all made that blatantly obvious at the Congressional Bailout hearings recently. No plans, no cost saving, no humility or pride. They are only there to make money for others. That's not a car company, that's a pimp.
- Awful negotiations. I don't blame the Unions, at all. If the Big Three couldn't ever get their collective acts together to bargain in good faith for better deals, then it's THEIR FAULT. The same people blaming the UAW are the same people blaming the homeowners for the Foreclosure Crisis. Self-interests, baby, self-interests. Detroit dropped the ball on bail-outs, pensions, CEOS and corporate structure long before they can blame it on the Unions. Blaming unions for Detroits fall is like blaming bad news on the Internet. How many hundred or thousand times the average auto worker's salary do the "corporate administrators" in these three make? It's misplaced priorities, complete lack of pride in a product, and a "blame the union" attitude so prevalent on Capitol Hill over the last decade that's compounded the problem. the unions saw the writing on the wall, and figured they better get what they can. Do you blame them?
(All photos are mine, from the astounding Las Vegas Imperial Palace Auto Collection/Museum. If you're in the market for a super-rare ride, check them out. BTW, the red '76 Ford Torino at the top of the article? It's an actual "Starsky and Hutch" movie ride, for sale, even!)
1 comment:
Some self-interest. The UAW has "bargained" itself into jeopardizing their pensions, health care, and the future of the very jobs entire towns and related industries rely on. If by "self" you mean they were in it merely for their own greed at the expense of protecting the industry for their children and childrens children, that's just great.
Interesting that you applaud that self-interest even while criticizing the Big Three for "feed us" corporate greed. You call it "good faith" when you know damn well that faith comes with a loaded gun aimed at the companies and the shareholders (you know, everyday people with their retirement money invested).
You also seem just fine with the greed that has homeowners buying way more showpiece than they can afford.
Seriously, you need to make up your mind. Greed can't be a virtue in some, and a defect in others.
Perhaps American autos wouldn't be crappy if it didn't cost so much more to make a car, costs that are tied up not in R and D, or product quality, but in exhorbitant employment packages.
Toyota seems to be doing just fine. Happy employees, happy CEOs, happy customers, happy shareholders. What's the difference? Hmmm. Let me see. Unions? Naaa. Must be something else. They probably don't employ bean counters. Ya. That's it.
I blame the companies as much as anyone and I don't think they should be bailed out, especially on a romantic notion that they once made works of art (pictured here liberally). But stating that the unions aren't to blame because they were just looking out for number one is to endorse the very behavior you profess to despise in corporate America.
Hey, at least corporate greed leads to more money and more jobs. The kind of greed you seem to applaud leads to bankruptcy and massive taxpayer bailouts.
Thank God for corporate greed, without which there would be no money to bail out your greedy unions.
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