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Joined: Aug 2004
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Hard-core CEG\'er
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Hard-core CEG\'er
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Do you guys/gals ever think American cars will ever have a good resale value as Honda/Toyota/Acura etc.? Or do you think it will always be seen the same way it is seen today?
"Do what you like, Because you have to drive it!"-Me
99 Contour LX
95 Mustang GT Convertible
97 Z24 Cavalier
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I lived in a union town (Pittsburgh) for 30 years and watched the unions and management ruin the steel industry. Back in the 70s I knew people that were paid $18/hr to sweep floors in a machine shop! Ironworkers were paid $32/hr to work near the blast furnaces. Needless to say they lost their jobs when foreign steel hit our shores. Management also didn't bother to install modern furnaces to make steel cheaper. They were too busy lining their pockets with $$$. Detroit doesn't make too many desirable cars and trucks either. They spend too much time in the shop and at the gas pump. 
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Joined: Jun 2000
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Hard-core CEG\'er
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OP
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http://news.yahoo.com/fc/business/automobiles_and_driving Originally posted by UAW:
The main US auto union called Ford Motor Co.'s decision to cut tens of thousands of jobs "devastating" and blamed the company management for the failure to protect market share. Ford announced that it would cut 25,000-30,000 jobs and close 14 assembly plants as part of a restructuring plan to stem massive losses in its North American vehicle operations. "The restructuring plan announced this morning by Ford is extremely disappointing and devastating news for the many thousands of hard-working men and women who have devoted their working lives to Ford," United Auto Workers president
Money doesn't always bring happiness. People with ten million dollars are no happier than people with nine million dollars ~ Hobart Brown
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Joined: Oct 2002
Posts: 726
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Originally posted by MapOfTaziFoShoâ�??¢:
Screw the UAW... 
Yep. What a great way to justify lazyness and poor workmenship.
-Tim 
Tim
Ex - ContourPower
2001 Saab 9-3 Viggen
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Joined: Mar 2004
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Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Mar 2004
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Originally posted by jtour:
Do you guys/gals ever think American cars will ever have a good resale value as Honda/Toyota/Acura etc.? Or do you think it will always be seen the same way it is seen today?
Imports have good resale value because they're namebrands taht are in demand.
If the domestics can create cars that have the consistency of being reliable standout cars, then they'll have good resale value. Renaming the cars every generation doesn't help.
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Joined: Dec 2002
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Hard-core CEG\'er
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Cutting jobs, closing plants and getting the UAW to face reality (yes the union needs to do that) are necessary - but that in itself won't heal/fix the problem.
The only thing that's going to save Ford (and GM) is to come out with a string of exciting, well-recieved products over time. Ford has a start with the Mustang and the Fusion - if their new crossovers and other products do well then they could get some real momentum going. If they cannot do that, then they will just continue to shrink and die slowly over time.
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Joined: Jul 2000
Posts: 3,718
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Originally posted by sigma:
Ford sells their cars at a lower price because the market values it at a lower price.
The money saved if not for the exorbitant UAW contracts wouldn't go to lower the price. Lower prices have done nothing but persist the notion that domestics are 'cheaper' cars. People don't want cheap cars, they want good cars -- look at the success of the Camry for proof of that. The money saved would go towards better engineering, higher quality components, etc, etc, etc. Once the consumer got it back in their head that "Domestic" does not equal "Inferior" prices could come up, bringing margin with it.
I believe it was Lutz, ironically enough, that said "It's better to spend an extra $1,000 on quality than give the customer $2,000 to buy your car".
I firmly believe in Lutz's vision, though I'm just not seeing where American manufacturers have executed on anything close to it, except in a few select occasions. Since all are publicly-traded companies, there exists a myopic short-term view of things and I for one firmly believe that any margin would be sunk into making the Street happy on a quarterly basis instead of correcting issues that would give both Ford and GM a fighting chance in the automotive market. I've just seen too many companies do it simply because executive pay is tied to quarterly performance and not any elusive "long-term" performance gains...
It's hard for me to swallow that any "extra" margin found in nixing the financial gang-rape that the UAW leads in would be seriously used to up quality and materials; penny-pinching and short-term goals are just too ingrained into the US automotive industry at this time, IMHO. Change is in the air, but I believe it's going to get MUCH more painful before effective and worthwhile changes are going to be made.
I'm guessing that fixing the overall operations issue is taking precedent at GM and Ford over most anything else these days, though they are going to have to start paying more attention to their products or face continuing market-share decline.
I'm just wondering how many more arteries have to open up and bleed red ink before the UAW and top management in Ford and GM wake up...
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
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thank god i work for a japanese company! (we suppy honda mainly)
It would really suck to be a Ford guy at this moment.
95 Merc Stique
Zetec 2.0 Auto
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Quote:
I'm entirely looking foward to seeing the UAW take a beating on their part of this equation
Im not even going to get in depth with my views on the unions in this nation. Working in one for 5 years, and NEVER needing it (I work when im getting paid) Ive seen more countless people who should have (100%) been fired keep their job because of the union.
Alex
'99 SVT Contour
-=|WANTED: Vortech, working or not |=-
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Joined: May 2000
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Hard-core CEG'er
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I think things are only going to get worse before they get better. IMO, it is going to take GM or Ford to declare bankruptcy before we see any real change.
"Bros before Hoes" <-- More men need this mentality.
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