The tale of "Blue" - a Ford Motor Co. team set up to design small, fuel-efficient cars - tells a big part of the story about why Detroit automakers maybe only months away from bankruptcy.
This article infuriated me beyond words.
In the face of foreign manufacturing of increasing efficiency in all aspects of production, the big three American auto manufacturers decided for the better part of two decades that they were going to get away with producing huge gas-guzzling monstrosities and think that they were forever going to make a profit on vehicles that got three miles to a gallon of fuel anyway.
It makes me angry because in spite of this fact, the news media and the economic culture in general speak of "handling" a union as though it were a nuisance; as though a guy on the assembly room floor who actually builds the damned things he was ordered to were responsible for the shabby financial state of the company for which he works simply because he wants better than a hand-to-mouth living for his family and an assurance that he doesn't have to send his kids to the underfunded county ER.
Health care costs are cited frequently cited as one of the three big reasons why our automotive companies cannot remain competitive. The reason why is the fact that every other auto-making industrialized country on the face of the earth has single payer universal health care.
We have the best life-saving medical technology on earth, but you might as well chuck it into a burn pit because no one in the country making under six figures per year can afford to access it.
Canada, England, Japan, Germany, Taiwan, Switzerland, and the "People's Republic" of France, just to name a few third world hellholes, have health care systems that are far superior and far more efficient than our own in providing for the health of its respective citizens and spends less per person than would be believable by most Americans.
The common factor in all of these countries is that they treat good health care as a human right, rather than treating it as a commodity to make a profit from. In fact, the profit motive is completely removed from these systems by law and they still outperform us in health statistics across the board.
Dealing with a union demands for better health care as an "issue" is not a solution. Dealing with health care as being better than a mere profit making industry is. Grinding the American worker into the dirt is not the way to make him competitive. Taking care of the American worker is.
There is no free lunch. I find it interesting that you call all these countries with what I would call marginal health care systems as being "their world hellholes" is that they tax their citizens at such high levels that there is little incentive to work harder than the person next to you.
Do a little more research and you'll find that only the well-to-do in these other countries have immediate access to good health care through supplemental policies that they pay for. Stop believing all the propaganda from liberal leftys in this country.
I like this situation to an addict. The high only last so long and then the addiction becomes a necessity.
These companies wanted to ride the high on making money off of big gas guzzling trucks and SUV's while the cosumer was stuck paying the price at the pump to fill it up. So the gas at the pump goes up and the consumer does the common sense thing and looks for something that is reliable and good on gas. Leaving these companies sitting on their thumbs wondering where the money is. The high is gone and they just need the money (drug) to just feel or operate in normal mode. The only way to get to normal is to hit rock bottom in the case of addiction. It is the only way to wake these companies up from this high they have been riding. They need to go back to the basics. Maybe they just need to go a little slower in production. Maybe they need to give us our money's worth for what we pay. We just might come back and give our hard earned money again for another one of their products. It is simple supply and demand. Why is no one in the CEO realm of these companies looking at this whole story unfolding and saying "desperate times call for desperate measures." The real solution is too hard for them to fathom. Some where is the solution, and the price of it is an awakening they do not want to face. Money it seems has grown a brain. And to get it you have to give in return. Bottom line is greed is a stronger drug than crack could ever think of being. It is just too hard to let go of.
So if the usual supplier (consumer) of this drug (money) is not supplying them what they need, they just look somewhere elso for their fix. This supplier ends up being none other than the U.S. Government.
The only way to break this vicious cycle of addiction is to let these auto dealers hit rock bottom and go thru the whole cycle of withdrawal so to speak, as painful as it might be, and start from scratch building a company that in the end is much wiser than before. and not take a hit of a bundle of money that would just cause them to fall off the wagon again and start the addiction all over again. It is their company. Make them responsible for their own sobriety.
Good analogy. I've said before, we need a 12 step program following a good intervention. Somehow, I doubt Pelosi will do that.
All Pelosi is interested in is partisan politics and bashing Bush.
I use to work for Ford. And I would say that they made bad choices. And it shouldn't be up to the government to help them out. If they fall, they fall. They thought the suv was going to be the money train for ever and always. The Escape I drive has had 4 recalls. When you work for Ford and your headlights stop working when you're on you way to work, what does Ford do? They carry you AWOL for not making it to work. Even though they know it was their product that kept you from making it to work in the first place. You work for them, and support them by buying their product. And the thanks you get is a kick in the pants when their product fails. And Ford really does use the cheapest parts they can to build their products. When I went to work for Ford we built a good product. It only took about 4 yrs for me to be ashamed to tell anyone that I worked for Ford. I say let the auto industry fall if it's going to. It's the wake up call they all need. They are arrogant, and like to take your money for something that will cost you wages when you have to take off from work because of recalls.
What has hurt the auto industry the most, is the fact that our country has lost so many good paying jobs to other countries. Even Ford has said their future is in China. Well who do they think is going to be able to afford their products. The people in China making pennies for a wage aren't going to be able to afford one of Fords products. What did the auto industry think was going to happen when they moved their production to other countries. The people they put out of work could no longer afford their products. DUH!!!!! These big companies just don't get it. And it's not just the auto industry. Companies will do well when people can afford their products. Look at all the good paying jobs that have left this country. The government shouldn't help them. They should have to reap what they sow. NO MORE BAILOUTS! The bailout for the financial institutions was another mistake. When is our government going to get it. And the people responsible for the banking mess, should be foreclosed on and all of their assets sold. And I mean everything they have. But yet again our government is going to protect the wealthy and screw the working class. Greed has created this mess. And the government needs to stay out of it.
What makes you think that people in China will not be able to afford cars made in China?? Check out all the companies making big investments in China. They have no intention of manufacturing a product in the U.S. and exporting it to China.
Gobalization is going to continue causing distruptions in our economy. This is not an issue of class warfare. It is an evolutionary process where we, as 4.5% of the world's population are no longer going to dominate economically. The sooner we accept the inevitable, the sooner we can shift our educational systems to produce workers who can compete in a much different world than we and our parents grew up in.
The auto companies and the UAW created their own misery. I am opposed to a bailout. I live in the South where many foreign car companies manufacture cars that are reliable and energy efficient. The key to their success: NO GREEDY LAZY UAW!!!!! I lived in Detroit and those workers are lazy overpaid slobs. The auto execs are also greedy. These companies were bailed out once and did not learn their lesson. Two key points: 1. None of us can afford a car, and, 2. None of us want to buy another American lemon......I owned two Chrysler mini-vans that were duds and now own a Toyota that runs great without any problems!
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