Why is GM failing so bad?

[jprad]

Quote from FuturesGamer:

Not really. I bought an 87 Jeep Cherokee new, kept it a couple of years, then sold it to a friend of mine.

I'm sure there's just as many stories of Toyota's, Honda's and even Benz' autos that were complete lemons.

None of them are representative of the overall statistics though.

 

[jprad]

Quote from daddyeaux:

no way that a union retiree can pull down $60 hr equivalent in benefits for sitting on his ass.

while Mexicans make $4.50 an hour on the assembly line.

this race was lost decades ago.

Excuse me, Mr. Adept at Missing the Point, the "race" is for cheap(er) labor.

Once that commodity runs out, then what?

 

[jprad]

Quote from ProfitMania:

He told me that he had ADD and a little retarded and that is why he came to US for college.
...
This is why: A retarded German is better than most American students.

I rather doubt it was the likes of Harvard or Princeton, most likely, some inner-city community college.

Of course, you're going tell us he went to Auburn and played football against his American cousin every year, the winner got a box of chocolates, is that it?

 

[jprad]

Quote from saxon22:

In manufacturing, a sector with high exposure to international competition, one hour worked cost an average EUR 33.00 in Germany in 2007. So Germany ranked fourth in the European Union after Belgium, Sweden und Denmark.

It's pretty damned easy to be competitive internationally when you're using government-subsidized labor.

That German labor would be a hell of lot higher, and their industry much less competitive, if it was fully-burdened by the private sector as it is here in the States.

As you can see those numbers are pretty high yet the economy is much healthier.

"Health" is cyclical when it comes to economies.

 

[condorll]

Quote from saxon22:

And how exactly do union disable the corporation? Please educate.

A couple of ways:

1) Restricting job descriptions. A Union worker will stop working if his machine breaks until the designated union repairman fixes it. Japanese owned plants have workers fix their own machines with expert assistance if required.

2) Layoffs and recalls of Unionized employees are based on seniority not ability and work ethic. If you have slugs with seniority they are the last to go and the first to come back.

3) Union employees health care costs can continue for months after a layoff, meaning even though they are layed off your costs for that line worker continue.

4) Retirement costs for defined benifit pensioners with healthcare add a considerable sum to every car made.

5) Strikes. Witness the recent Boeing strike and the cost to BA and suppliers.

Need more?

 

[condorll]

Quote from 1flyfisher:

I had a Jeep(Chrysler)Grand Cherokee 94 till I rolled it last january. Solid bomb proof dependable vehicle. I drive it in major snow to get out skiing on powder days. I Beat the crap out of it all over the Sierra offroad getting into flyfishing spots. Ran great never needed anything fixed. just change the oil that was it.

I had 2 Grand Cherokee Limited's a 1996 and a 1999, both new. Both couldn't make it to the scheduled 3,000 mile oil changes without something requiring repair first. Driving a Jap now and they have to remind me to come in for the 6,000 mile oil changes.
Over 3 years now on da Jap and nothing has been done except oil and filter changes, and they do it in an hour compared to the repais/oil changes requiring full days or more (and a rental at my cost) at our wonderful American dealerships. I had a new beemer also and spent way too much time in their service department.

Toyota & Honda are your best bet for reliability.

Do I blame GM, Ford Management, somewhat. Do I blame US autoworkers unions? You betcha.

 

[good one]

Quote from condorll:
3) Union employees health care costs can continue for months after a layoff, meaning even though they are layed off your costs for that line worker continue.

4) Retirement costs for defined benifit pensioners with healthcare add a considerable sum to every car made.

Yep, the reality is you can blame management but the UAW has put management in an impossible situation.
Even in this last round of "buy downs" the amount of money the company had to pay out is absurdly out of line with any other business, not to mention "buy outs".
The UAW isn't stupid either though, they will just hold the line until US auto makers go under then the government will be on the hook for all the promises that have been made to them.

 

[zdreg]

Quote from Tums:

...and the disabling unions.

...and the enabling management.

the interests of management have not been aligned with shareholders. management is interested in their jobs and their perks and current benefits. management had no vision for the lt(long term). this is one of major faults of current american style capitalism.

 

[ProfitMania]

Quote from jprad:

I rather doubt it was the likes of Harvard or Princeton, most likely, some inner-city community college.

Of course, you're going tell us he went to Auburn and played football against his American cousin every year, the winner got a box of chocolates, is that it?

1. Most GM workers are from those community colleges. Maybe the top managers are from elite universities and they made stupid decisions at GM, no hedge against high oil prices and they made the same mistake twice.
2. Many of the Harvard etc. graduates went to Wall St. They are just more capable at destroying the investment banks they are working for.

So bragging about the Harvard etc does not help.

 

[Trader666]

Why is GM failing so badly? UAW