I got a bit riled up today when some talking head came on and said that now that the auto companies have a loan, they might finally wake up and make cars that people want to buy ... hybrids, not gas guzzlers. These folks always have an agenda and do not deal with facts.
Fact: many people like large cars and SUV's
Fact: not everyone wants to own a hybrid
Fact: GM is still the largest auto maker in the world
Fact: Toyota sales are down 30%
Fact: This is a market recession, not an issue with GM (or Chrysler) quality or product portfolio (the first is getting better and the latter spans all types of vehicles)
Fact: GM (and Chrysler) are victims of too many models & too high of a cost structure
Please stop trying to shove your agenda down our throats. The thought that having hybrids would have avoided this mess is ludicrous. With a million or so folks out of work, with credit on hold for all but the best of borrowers, the auto industry is in the tank, plain and simple.
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3 comments:
Pretty good point. People don't necessarily want hybrids, just for fuel to be cheaper. Buying a hybrid does not guarantee you will have cheaper fuel costs. I find it incredible that car companies' failing business is blamed on this, that they aren't pushing new technologies, while no one cares that oil companies are "failing" to innovate. What can be said of this?
There is still something wrong with managment though. Why aren't Honda, Toyota and Hyundai running to their governments for bail-outs? They may be, but I haven't seen it in the news.
I suspect the big-three never bothered to save for a rainy day. Management never saw a credit collapse AND slowing-demand due to the cost of fuel coming at the same time.
When that happens, you're supposed to have some cash to hold you over. After all, when you and I run around spending without saving and then get into a mess, we're called fools for not putting away money for a rainy day.
Well, I think you found a more fundamental issue. I was focused more on the cost structure which would force the company to burn through any cash reserves at a faster pace. Your comment is directed at the folks that set up and tolerated the poor structure, the poor design criteria that allows high-cost manufacturers to compete (see BMW, etc). They compete against mainstream Japanese and Korean vehicles and thus must compete on cost and quality since they have no visionary management that would actually design a unique vehicle.
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