US Auto Industry Will Likely Disappear

[bigfootedfred]

Nobel economics prize winner Paul Krugman said Sunday that the beleaguered U.S. auto industry will likely disappear.

Krugman won the 10 million kronor (US$1.4 million) Nobel Memorial Prize in economics for his work on international trade patterns. Some of his research on economic geography seeks to explain why production resources are concentrated in certain locations.Speaking to reporters three days ahead of the Nobel Prize ceremony, Krugman said plans by U.S. lawmakers to bail out the Big Three automakers were a short-term solution, resulting from a "lack of willingness to accept the failure of a large industry in the midst of an economic crisis."
http://www.cnbc.com/id/28097151


a little history as im sure most will know.

http://en.wikipedia.org/wiki/Automobile#History
The large-scale, production-line manufacturing of affordable automobiles was debuted by Ransom Olds at his Oldsmobile factory in 1902. This concept was greatly expanded by Henry Ford, beginning in 1914.
As a result, Ford's cars came off the line in fifteen minute intervals, much faster than previous methods, increasing production by seven to one (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower.[12] It was so successful, paint became a bottleneck. Only Japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "any color as long as it's black".[12] In 1914, an assembly line worker could buy a Model T with four months' pay.

[Deep_Red]

Sad, huh?

[Dr. Croccer]

Woolies is going away in Britain as well. A lot of banks and maybe other branches here might go as well. So sad.

[VALIS]

Instead of making good reliable cars American car manufactuers spent time making their cars less reliable so they would breakdown and force the owners to buy another new car. They were short sighted in that they didn't foresee the Japanese and European car companies seep into America, which they did.

American car industry is failing because they make crap cars. Simple as that. Make a good product and the public will buy. So they really have nothing to blame but themselves.

[Darkragnar]

American car industry is failing because they make crap cars. Simple as that. Make a good product and the public will buy. So they really have nothing to blame but themselves.

Yup agreed , its not like people are buying other cars for other reasons they buy them because there better in someway , whats the point of making crap cars that no one buys , isnt it a business there running not a charity to keep people in jobs.

[shadyrome]

Instead of making good reliable cars American car manufactuers spent time making their cars less reliable so they would breakdown and force the owners to buy another new car. They were short sighted in that they didn't foresee the Japanese and European car companies seep into America, which they did.

American car industry is failing because they make crap cars. Simple as that. Make a good product and the public will buy. So they really have nothing to blame but themselves.

I am not sure about this. Do they do this on purpose?

[Panzerbear]

Instead of making good reliable cars American car manufactuers spent time making their cars less reliable so they would breakdown and force the owners to buy another new car. They were short sighted in that they didn't foresee the Japanese and European car companies seep into America, which they did.

American car industry is failing because they make crap cars. Simple as that. Make a good product and the public will buy. So they really have nothing to blame but themselves.

+1.

in addition to that, Ford makes much better cars in Europe than they make for US market. how hysterical is that?

Spoiler Alert, click show to read: 

FOCUS - Europe


FOCUS - US


MONDEO - Europe


Taurus - US


and I can go on and on about Ford American POS cars... and dont even get me started on their SUVs

good riddance.

[mrmouth]

There is so much misinformation surrounding the US auto industry.

Since the late 90's US automobiles were on par with foreign autos in terms of reliability and mpg. In the last 8 years, US autos are actually beginning to surpass Toyota and Honda in reliability and mpg.

The issue is, these foreign car makers built their reputation on just that, and US car makers never did the same, even though their cars even back into the 60's and 70's, were not much less reliable than the small imports.

More than anything, US automakers need to change public perception, and get the numbers out that support the facts.

This is the home of the most efficient production cars ever made. The first electric production cars ever made.

[Viking Prince]

The industry is not dying. GM is dying. Ford is on the ropes. Chrysler is the undead. Others are doing quite fine. The 'big 3' only represent about 1/2 of the market. Nearly all vehicles sold in N. America are assembled here.

from another thread today:
http://www.twcenter.net/forums/showt...69#post4094969

I find it more amusing that we can contemplate funding $30b and maybe $100b to the auto industry to support the overpayment of 150,000 workers and yet we can lose 533,000 in one month without much more than unemployment compensation being contemplated. The politicians are full of it.

Series Id: CEU3133610001
Not Seasonally Adjusted
Super Sector: Manufacturing
Industry: Motor vehicles
NAICS Code: 3361
Data Type: ALL EMPLOYEES, THOUSANDS

Source

Also -- remember that Ford, GM, Chrysler only make up about 50% of the vehicles and 2/3 of the employment. The graph shows a trend that is not going to be changed when the economy turns around. Krugman is correct that any bailout is a shortterm oriented solution -- I might also add -- a solution that will not work.

A point to consider, the industry may have up to double the capacity that is needed. The 'big 3' have double the labor that they need for capacity. Taking the two factors together, employment levels on the assembly lines for the 'big 3' will need to be decreased by perhaps 60% under any solution that is to make any sort of difference.

The unions are not ready to accept such real issues and the money will be wasted. Ironic that this may also mean the eventual liquidation of the three when they return for another fix. Nothing like holding out for what cannot be and thus losing what is possible.

[Last Roman]

funny that I should stumble upon this, there was just an ad pleading with local residents to contact our senator to vote for the auto bailout.

[VALIS]

Pity about Ford. From a European perspective they are the only American car company worth giving a damn about. The Focus, Orion, Mondeo, Escort, Fiesta, all fine cars. GM and Chrysler never even made an impact over here, I can't think of a single good car they make.

[Rush Limbaugh]

Just shows even a genius can be way wrong.

[Каие]

Just shows even a genius can be way wrong.

Who's the genius Ron Paul?

[Strattios]

I have a 2000 Dodge Ram truck. Best damn vehicle I've ever been in. It is a shame that the big three are hurting, but I doubt they'll die. If anything they'll remain through government production. The biggest problem is that they can't produce it at the same cost as other companies. The unions here are raising the wages which increases production cost. Then people get mad when they have to lay people off. Same goes with cost and foreign labor. American cars cost a lot to produce here so they have to charge more. People here complain and buy cheaper foreign cars. Yet the American companies can't export the labor because they will be critisized and people wont want to buy there cars.

Then there are those messed up safety ratings. My truck doesn't have that great of a rating, even compared to many little sports cars. I think that's messed up. I've literally done a 720 degree turn on ice and went into a two foot deep ditch full of snow. Last time I forget to use my four wheel drive. Point is, I was able to back out myself. Cars weren't even being allowed on this stretch it was so bad. Another time some moron ran a red light. He T'd me. Hit me right in the side, yet he was driving a spiffy little Toyota. I had a dent and the left door wouldn't open. It totaled the entire front end of his car.

I'm saying this because a friend showed me an add for some little, one-seater, three foot high Euro car. One of the best features was it's safety. It had high tech braking system, full airbag coverage, harness seat belt. The thing was aluminum with a glass bubble at my bumper height. What do you thing would happen if it ran into the front of my truck (which, by the way, has about one third the safety features)? So many people insult the large American vehicles, yet every crash I've seen (and I've seen a lot) has ended with the drivers of the low safety rating American cars get out and call the ambulance while the other driver is nearly crushed.

If Foreign car manufacturers can produce decent vehichles by my standards, I'll be satisfied. But I have yet to see a foreign truck that can do what its American counterparts can do. And yes, it has to be a truck. You ever try driving home with thirty, 20 foot long decking boards on the roof of anything else?

[Rapax]

I'm saying this because a friend showed me an add for some little, one-seater, three foot high Euro car. One of the best features was it's safety. It had high tech braking system, full airbag coverage, harness seat belt. The thing was aluminum with a glass bubble at my bumper height. What do you thing would happen if it ran into the front of my truck (which, by the way, has about one third the safety features)? So many people insult the large American vehicles, yet every crash I've seen (and I've seen a lot) has ended with the drivers of the low safety rating American cars get out and call the ambulance while the other driver is nearly crushed.

Yes and I'm sure if you're driving a tank even less will happen to you. That's kind of missing the point of safety ratings though.

[VALIS]

If Foreign car manufacturers can produce decent vehichles by my standards, I'll be satisfied. But I have yet to see a foreign truck that can do what its American counterparts can do. And yes, it has to be a truck. You ever try driving home with thirty, 20 foot long decking boards on the roof of anything else?

Top Gear presents to you: The Toyota Hilux pick-up truck

[chamaeleo]

You ever try driving home with thirty, 20 foot long decking boards on the roof of anything else?

Yes...my girlfriend's 1995 Mazda B2300 compact pickup, aka, Ford Ranger!

[mrmouth]

Pity about Ford. From a European perspective they are the only American car company worth giving a damn about. The Focus, Orion, Mondeo, Escort, Fiesta, all fine cars. GM and Chrysler never even made an impact over here, I can't think of a single good car they make.

See, Ive never seen a Ford in Europe or the UK. I have seen plenty of Jeeps (Chrysler) and other GM cars though.

I think the whole ford thing is fairly new. Turn of the century new. Makes since though. All the cars you mentioned are economy size, that have always been big in that part of the world.

[VALIS]

See, Ive never seen a Ford in Europe or the UK. I have seen plenty of Jeeps (Chrysler) and other GM cars though.

I think the whole ford thing is fairly new. Turn of the century new. Makes since though. All the cars you mentioned are economy size, that have always been big in that part of the world.

No way! Europea, or Britain specifically, has been a Ford stronghold for years and years. Since the 80's. I don't think I've seen many Jeeps here at all, this is 'Land Rover' country.
I can't think of any GM cars over in UK apart from the stretch Hummer which is everywhere these days(normally in pink) for 'hen' nights.

But I would say Ford still dominate the market for low to mid priced mass market cars in the UK, with BMW or either Renault coming up in 2nd.

[Yorkshireman]

See, Ive never seen a Ford in Europe or the UK. I have seen plenty of Jeeps (Chrysler) and other GM cars though.

You've been to the UK? Fords, Cortinas, Granadas, Mondeo's etc, best selling cars in the UK for about 30 years. Last year the best selling car in the UK was the Ford Focus.

Jeeps are'nt too popular, (too big), we have Land/Range Rover if you require a viechule as powerful as that. Most popular is probably Toyota Landcruiser.