Toyota Predicts Government Handout For GM
1/11/06, 06:26 AM
#1
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From AUTOBLOG...
Stating that "the auto industry is a symbol of the United States," Toyota chairman Hiroshi Okuda said yesterday that he believes that the government won't let General Motors suffer too much longer without a hand-out, despite President George Bush's statement to the contrary last month. When asked for a response to the chairman's comments, GM CEO Rick Wagoner shrugged it off, saying he hadn't seen a check yet and that the government wasn't part of the company's restructuring plans (but that they'd take the money if someone was offering).
It's interesting given an estimate by Jerry York that GM will run out of cash in 1,000 days at the rate things are going during York's recent stab at GM while speaking at the Society of Automotive Analysts. That's actually just three months shy of three years, making this a possible 2008 campaign issue and an opportunity for G. W. to either make or break the Republican party candidate.
It's interesting given an estimate by Jerry York that GM will run out of cash in 1,000 days at the rate things are going during York's recent stab at GM while speaking at the Society of Automotive Analysts. That's actually just three months shy of three years, making this a possible 2008 campaign issue and an opportunity for G. W. to either make or break the Republican party candidate.
1/11/06, 09:54 AM
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There's a difference between federal handouts and loan guarantees. The fed sort of "co-signed" for Chrysler in the event of default. But no federal money ever went to Chrysler. They paid their bridge loans and tore up the guarantees ahead of schedule.
A handout to GM would be a very different situation.
A handout to GM would be a very different situation.
1/11/06, 01:59 PM
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I was listening to KYW 1060 this morning. Chinese auto manufacturers only have to devote $50 per vehicle towards healthcare whereas the American manufacturers devote about $1600-$1700 per vehicle towards health care costs!!
Yikes!
I do think the workers need to put a bit more of their earnings towards the cost.
Yikes!
I do think the workers need to put a bit more of their earnings towards the cost.
1/11/06, 02:18 PM
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Same story with the Japananese. Their government subsidizes health care, therefore their industries dont have to--gives them a great comparative advantange.
That said I'm hardly advocating national health plans...
I also wrote a great column about this...but no one read it when I posted it.
That said I'm hardly advocating national health plans...
I also wrote a great column about this...but no one read it when I posted it.
1/11/06, 05:56 PM
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OMG I LOVE YOU. DUDE im like really appreciative of you reading this. (btw the love you thing was a joke..but not really) let me dig up that link for you
Here you go:
Its called "Save Your Own Ship"
http://forums.bradbarnett.net/index.php?sh...78&hl=big+three
Here you go:
Its called "Save Your Own Ship"
http://forums.bradbarnett.net/index.php?sh...78&hl=big+three
1/11/06, 07:37 PM
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The government wont let GM go under. As much as I dislike GM products, there is too many people depending on them for employment and would ripple through the economy. I do think they need to kick unions to the curb. They serve no function in today's society. Why should someone who does the same task, over and over, be earned $70K+. Yes, he's been there for 32 years, but it's not 32 years experience. It's 1 year of experience, repeated 32 times. The foriegn auto makers with plants in the US, do not use unions. The hire and fire as needed. Much like the rest of America. I'm patiently waiting for GM stock to go under $10 so I can buy it up.
1/11/06, 09:43 PM
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Originally posted by FinlayZJ@January 11, 2006, 8:40 PM
I'm patiently waiting for GM stock to go under $10 so I can buy it up.
I'm patiently waiting for GM stock to go under $10 so I can buy it up.
1/11/06, 11:14 PM
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Dave, that was an excellent paper. I said 40 years ago that unions would be the death of the Big 3 and it appears that's what happening now. You also have to add questionable build quality and boring cars to that equation. It's no surprise to me that they're struggling.
1/12/06, 07:36 AM
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Interesting paper. And very well written at that Dave. While I think the American manufacturers have caught up in quality, IMHO, I must agree that the UAW is not beneficial to the good of the company. Unions had their place in the days of old but now they just bully for more money it seems.
1/12/06, 05:18 PM
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Originally posted by AnotherMustangMan@January 11, 2006, 2:21 PM
Same story with the Japananese. Their government subsidizes health care, therefore their industries dont have to--gives them a great comparative advantange.
That said I'm hardly advocating national health plans...
I also wrote a great column about this...but no one read it when I posted it.
Same story with the Japananese. Their government subsidizes health care, therefore their industries dont have to--gives them a great comparative advantange.
That said I'm hardly advocating national health plans...
I also wrote a great column about this...but no one read it when I posted it.
Was this for a College paper?
1/12/06, 06:20 PM
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The legacy costs are large part but the quality issue is as much part to blame. The UAW has a strangle hold on Ford and GM they can't do anything with out UAW sewing them.
The reason foreign manufactures are leading the way is this. If a Toyota working doesn't do his work properly guess what he is fired. A UAW employee will never be fired for doing a horrible job and get paid God knows how much to do it poorly I may add. The unions have their hand in everything. Shoot GM can't even close a plant with out asking UAW. Their own plant!
Which in turn you get a poorly built car. There is no wonder Toyota has no labor unions and building their plants in right to work states if they build them here at all. They don't have unions blocking their way to build a better car.
Good paper by the way, very interesting.
The reason foreign manufactures are leading the way is this. If a Toyota working doesn't do his work properly guess what he is fired. A UAW employee will never be fired for doing a horrible job and get paid God knows how much to do it poorly I may add. The unions have their hand in everything. Shoot GM can't even close a plant with out asking UAW. Their own plant!
Which in turn you get a poorly built car. There is no wonder Toyota has no labor unions and building their plants in right to work states if they build them here at all. They don't have unions blocking their way to build a better car.
Good paper by the way, very interesting.