Originally posted by: Balt
Is there a realistic expectation that this bailout money would actually help the companies survive and return to consistent profitability? Or are we throwing our money away on companies that are going to continue whatever policies have led them to where they stand now?
These domestic producers also have a significant image problem. Even if they can get their automobiles' reliability ratings up to snuff with some of the overseas companies, people are not necessarily going to immediately trust them. Many people (including myself) have witnessed and experienced more problems with domestic cars than foreign ones, and trust isn't going to return overnight.
They were on track over the next few years to begin an image rebuild imo. Toyota has taken a black eye the last few years and I think people are taking note that gm quality is coming back.
I dont know why people are so hard on the big 3. The deck was stacked against them very early. I could be wrong, but autos were one of the first industry that foreign competitors targeted because the profit could be huge.
Recent numbers suggest that Toyota makes $5k per unit while the Big 3 lose approx. $2.5k
It really comes down to the legacy costs. The employees are not incometent or evil. They want a decent job with good benefits.
The other day we were talking at work and of about 15 employees children, relatively few had great jobs, even the college educated kids made much less than the parents. Not one manufacturing job in the group.
American workers should take note that as you strive for cheaper goods and services you fuel the demand for cheaper labor such as....yourself.
One problem some people never think about.
History of the M1 Carbine production
IBM (production: 346,500) Receiver marked "IBM CORP"
Inland Division, General Motors (production: 2,632,097), sole producer of the M1A1 Carbine. Receiver marked "INLAND DIV."
Irwin-Pedersen (operated by Saginaw Gear and production included with Saginaw total) Receiver marked "IRWIN-PEDERSEN"
National Postal Meter (production: 413,017) Receiver marked "NATIONAL POSTAL METER"
Quality Hardware (production: 359,666) Receiver marked "QUALITY HARDWARE"
Rock-Ola Music Corporation (production: 228,500) Receiver Marked "ROCK-OLA"
Saginaw Division General Motors (production: 293,592) Receiver marked "SAGINAW DIV."
Saginaw Steering Gear, Grand Rapids (production: 223,620 including production at Pedersen facility) Receiver marked "SAGINAW SG"
Standard Products (production: 247,100) Receiver marked "STANDARD PRODUCTS"
Underwood Typewriter Company (production: 545,616) Receiver marked "UNDERWOOD"
Winchester Repeating Arms (production: 828,059) Receiver marked "WINCHESTER"[28]
Remember the shortage of bullets, armored vehicles, and body armour in recent years. Should you continue to advocate the demise of the american manufacturing industry? Would Toyota and Honda gear up to produce weapons during a major military conflict or would they let politics guide their decision?