Originally posted by: Ktulu
Originally posted by: Capt Caveman
snip
Just how many cars/trucks do you think the Big 3 sell annually? Here's a clue, GM is constantly doing battle with Toyota for the #1 Automaker and Ford isn't too far behind them. If they all go down. All the current suppliers will have a huge amount of lost contracts, forcing them to either cut production or die off all together. Sure those that are currently supporting Toyota/Honda/etc. will survive with scaled back production, but it's still a huge hit.
I love how EVERYONE that brings this point up forgets that once the #1 automaker goes down, #2-infinity have to pick that slack up! Demand won't change directly as a result of any of the Big 3 going down, it may go down because the economy is in the shitter, but GM, Ford, or Chrysler going bust will simply mean more sales for Toyota, Honda, Nissan, VW, etc. Demand for cars did not change directly due to an automaker failing, meaning the same amount of parts are needed, GM's suppliers now supply Toyota or Honda or whoever takes #1.
Chrysler and Ford Europe buy their transmissions from Jatco. Guess who owns Jatco? Nissan. Chrysler and Ford go away, Nissan sells more cars to pick up the slack from two huge car companies going down, Nissan uses their leftover Jatcos in their own car.
Toyota's Aisin makes transmissions for GM too! "Aisin constructed a factory in the United States of America in 1986, with production beginning in 1989. This factory, in Seymour, Indiana has since been expanded and supplies components for Honda, Geo, General Motors, Mitsubishi Motors, Nissan and Toyota. The company also operates in Marion, Illinois." Same principles apply here. You really think that if GM goes out of business, Honda, Mitsubishi, Nissan, and Toyota won't be buying enough Aisin transmissions to pick up the demand left unfulfilled by the #1 automaker in the world?
How many cars sit around on dealer's lots? GM goes out of business, big deal, there are at least 10 other NON BIG 3 dealerships where a GM dealership is here in town.
Pull your heads out of your fucking asses. When the K-Mart down the road from Wal-Mart and Target and Costco goes out of business, the other three retailers don't ramp their prices up by 100%, more people just go to fucking Wal-Mart/Target/Costco! The doomsday scenario everyone is throwing around has a gigantic error in logic in assuming that there are only two car companies in the world, "The Big 3 Inc." and "Everyone Else."
Even if all three of them go out of business (GOOD RIDDANCE, they had 20+ years to get their shit together) then
all of these guys will be there to pick up the slack.
It's a BETTER scenario than one department store in a city of 4 stores going out of business, because you have dozens of car manufacturers competing to try and get YOU to be the one that buys THEIR cars as opposed to X Y or Zs cars since you can't get that GM/Ford/Chrysler anymore.
Jesus fucking Christ, I'd expect a
3 year old to have the logical thinking skills to solve THAT doozy of a puzzle. :| </rant>
I'd also like to throw this in, the store analogy made me realize this, I honestly think half of Chrysler, Ford, & GM's problems stem from the fact that they aren't just a "Wal-Mart" or a "Target," all three of them tried to be Costco, Walgreens, Winn-Dixie, Rite-Aid, CVS, Sam's Club, Target, K-Mart, Radio Shack, Best Buy, Circuit City, Wal-Mart AND fucking McDonald's at the same time, INSIDE the same fucking store (count them, that's how many marquees GM has, thirteen: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling). Does that look like a successful business model to you?
EDIT2: That's how many marquees they have NOW, Oldsmobile makes it 14.
