Re: [Amc-list] Big 3 - My Take

[Joe Fulton <piper_pa20@xxxxxxxxxxx>]

--- On Thu, 11/20/08, Frank Swygert <farna@xxxxxxx> wrote:

> From: Frank Swygert <farna@xxxxxxx>
> Subject: Re: [Amc-list] Big 3 - My Take
> To: amc-list@xxxxxxxxxxxx
> Date: Thursday, November 20, 2008, 8:55 AM
snip

>> Those companies SHOULD be able to somewhat predict what
> will happen in the future. It's tough -- sometimes you
> get it right, sometimes you blow it. But they should have at
> least had something on the drawing boards and in prototype
> that could be relatively quickly put in production. Detroit
> of today is not what it was in the 50s and 60s -- more lame
> ducks just "keeping on keeping on" than trying to
> really do anything new. 
> 

That's wishful thinking Frank.  You can't just cut an Impala in half like AMC did for the Hornet to make the Gremlin.  This ain't 1970.  There's more lawyers and more liability precedents today and many more regulations.  It takes months at least if not years and millions of dollars to reconfigure an auto plant today.  And no one could have predicted $140/bbl oil in 2007 and few could predict the $52/bbl oil we are seeing today. Let's see 40 mpg would be good, but it'll cost another $3000 per car.  Will people pay that?  Oh wait, oil is only $52/bbl again.  Let's sell some more SUVs.

GM and Ford and least seem to have some good products in the chute for release in 2010 and GM gets to shed it's liability for retirees medical coverage in 2010 or 2011.  After that a retirees trust fund takes over.

You're right about the bonuses though.  It was very poor PR on the part of the CEOs not to accept some personal sacrifices.

But they should not have to give up their corporate jets.  They do save time and provide security for those guys.  And auto companies can move management folks (not just CEOs) to and from plant locations for problem solving without screwing around in security lines at the airports.   The jets are just a symbol that the average folks see as a toy, but they are really a tool. It's called efficiency and it's real.

I'm through.

Joe Fulton  (happy GM owner and somewhat dissatisfied Rambler guy)


_______________________________________________
Amc-list mailing list
Amc-list@xxxxxxxxxxxx
http://splatter.wps.com/cgi-bin/mailman/listinfo/amc-list