The plight of Detroit (1 Viewer)

[braad]

so whats the go?

GM is slashing 30,000 jobs and closing 9 car plants after a $US4billion loss

info here:
http://www.smh.com.au/news/business/gm-to-lay-off-30000-over-a-year/2005/11/22/1132421665021.html

possibly ford will slash a few too

it's crazy, as i'm sure it will have a trickle down effect

http://www.smh.com.au/news/business...ocky-road-ahead/2005/11/22/1132421665027.html

 

[SlipStream]

Basically can be traced back to rising oil prices. Amazing how a seemingly worthless black, thick liquid can have such a profound effect on everything.

 

[braad]

i suppose

that and the "imports"

 

[011]

GM isnt really centred as a product company and never was. Its corporate aim doesnt mention automobiles and as of late it's finance division is pulling more than sales. That, and it makes crap cars, bought by idiots. So I say piss off and make room for someone who will keep up to date with new automobile trends (in an ideal world).

 

[Elements]

Basically can be traced back to rising oil prices. Amazing how a seemingly worthless black, thick liquid can have such a profound effect on everything.

Nup. Not entirely.

It's mostly a increasingly competitive market in the US, since Toyota and Nissan have taken a huge blow to the US autos, with their huge cash reserves (Toyota moreso).

This huge cash reserve by them allows them to create good quality cars, something the "Big 3" cannot do. Ford are starting to pick up the game, however hurt by the reputation of breaking down badly in the US market. Roll-over SUVs, Firestone fallout, Crown Victoria's exploding from rear-impacts (what wouldn't? But they want to whinge about something!), Recalls, etc. GM's no better.

Ford and GM's big profit slice (well, a lot of income anyway) comes from trucks/SUVs. Oil/Petrol prices rise, better competition comes in, you're snookered. No-one wants to buy a huge gas-guzzler, when there's more fuel efficient vehicles out there, with better quality!

Ford started releasing some decent family saloons as of late, and it's certainly paid off for them since oil prices have risen. Plus, the style (except the Five-Hundred), practicalitly, etc. have all been in favour of the new Ford passenger vehicles. They just need to work on the SUV's now, with the Explorer setting a good/high standard already.

GM need to start where Ford did about 3-4 years ago.

 

[SlipStream]

As you pointed out, an equally large impact is that much of GM's sales rely on America's obsession with the gas-guzzling SUV and oversized pickups. Rising oil prices have cut into sales as consumers look towards more efficient, smaller ways of transport. Some GM models have dropped as much as 50 over a month in comparison to the same time last year. It's a bit crazy - a few years ago OPEC countries were turning over 'only' US$60billion/year but this year they're looking at revenues as high as something like US$300billion. GM have been forced to reconsider models in development, and in order to remain in business they've started to focus on more efficient cars.

Can anybody write a fitting caption to this photo?

 

[loquasagacious]

I said this in another thread dealing with this:

GM isn't going to go bankrupt they are going to agressively restructure. Us of all people should know how notoriously unstable the auto industry is, we can all name car companies that have faced big trouble before, Ford, Nissan, Chrysler, Jaguar, etc etc.

Even IF GM did fold other companies would ramp up production to keep pace with demand and in doing so would be re-opening GM factories/expanding their own/building new ones and employing ex-GM workers.

 

[ToO LaZy ^*]

Can anybody write a fitting caption to this photo?

"OMG! howd you get your clothes ever so white?!"

 

[braad]

"OMG! howd you get your clothes ever so white?!"

range rover and OMO would like to announce their new partnership for the arab states

 

[SlipStream]

Can anybody write a fitting caption to this photo?

[middle guy] "My hand just wants to destroy earth, I can't control it!"
[right guy] "Just curl them into your super-white cloak like me; see? ...look at me damn it!"
[left guy] "Hey are you being racist?"

 

[011]

Can anybody write a fitting caption to this photo?

"So what's next, the SLR or the Enzo?"

 

[loquasagacious]

As you pointed out, an equally large impact is that much of GM's sales rely on America's obsession with the gas-guzzling SUV and oversized pickups. Rising oil prices have cut into sales as consumers look towards more efficient, smaller ways of transport. Some GM models have dropped as much as 50 over a month in comparison to the same time last year. It's a bit crazy - a few years ago OPEC countries were turning over 'only' US$60billion/year but this year they're looking at revenues as high as something like US$300billion. GM have been forced to reconsider models in development, and in order to remain in business they've started to focus on more efficient cars.

Can anybody write a fitting caption to this photo?

Sheik #1: How do you afford the petrol to run that thing
All Sheiks: Laugh

 

[bowman]

i hope they dont find out we were born in america