Comments on: General Motors: We Need Level Playing Field

By: The Urban Grind » Blog Archive » GM CEO - A Real Life “James Taggart”

Thu, 08 Dec 2005 19:30:21 +0000

[...] Via Outside the Beltway [...]

By: James Joyner

James Joyner — Thu, 08 Dec 2005 17:44:06 +0000

Chris: U.S. tax rates, both corporate and individual, are a fraction of what the Japanese and Europeans pay.

By: Chris Suzanne

Chris Suzanne — Thu, 08 Dec 2005 17:01:18 +0000

If Japanese car manfacturers are paying similar wages to General Motors, then how is it that the UAW is greedy Mr. Womack? It seems to me that it must be something else if these are equal. Maybe you have something with the management remark, I can't say for sure. As for health care, yes, other countries pay for it through taxes but then don't our corporations pay taxes AND heathcare costs? And we citizens pay taxes too, so maybe the government can spend those taxes on it citizens better?

By: GetALifeAgain

GetALifeAgain — Thu, 08 Dec 2005 12:21:41 +0000

The Japanese and other foreign automakers are wooed by politicians that promise big incentives. Free land , huge subsidizing of the plant building, and other such ridiculous "frivolties" forthwith not mentioned.

Average American content is 80% in American autos, 31% in Japanese, and 5% in German.

And American auto manufacturers purchase 80% of all American auto parts.

Lastly, American auto manufacturers employ close to 90% of auto workers.

A few things I think should be included.

By: Douglas Kay Bohner, P.E.

Douglas Kay Bohner, P.E. — Thu, 08 Dec 2005 00:43:11 +0000

GM has missed the boat! Those greedy little bean counters! How do they ever get management positions anyway? They are always so intraverted money money money numbers numbers numbers...............

I find it almost comical that no one talks about why GM has lost market share. As an engineer and a pre 80's GM groupie it was tough when my wife brought home a new toyota pickup in 1995. We had words :). After 160,000 miles, maybe $100 in parts like oil filters and starter brushes and never a trip to the DEALER!! I will never drive anything but TOYOTA again. Thats not totally true, I am restoring a 55 Chevy 3100 NAPCO 4x4 stepside pickup for my oldest son. I would not however trade the 55 for a new GM vehicle(Maybe the vette).

Its offensive to see GM pay a perfectly intellegent engineer to redesign parts to fail after so many cycles. It would last too long! How can we make money on parts and service says the bean counter. How many times has a friend of mine asked me to fix their car and all I find is a wheel hub with an aluminum rounded tooth gear. It was made to strip, it's worth the $2 they paid to have it made in China or Mexico and the PARTS GUY wants $300.

Just ask anyone who buys a Toyota. It's not about the initial cost it's ALL ABOUT THE QUALITY!!!!!!!!!!

Try a new MISSION STATEMENT:
Made in AMERICA
7 year bumper to bumper
Its not about the grille
new design with fewer parts
fail safe redundant electronics

They just don't get it!

By: jake

jake — Wed, 07 Dec 2005 22:46:58 +0000

seems like everybody has 20/20 hind-sight on the pensions and health care.I guess Ford and GM should just build cars in India and China (where GM products sell quite well) and import them to the U.S. I think G.M. will survive but their major market will not be the U.S. in the next 5 years. It will be the working class in the U.S. that will be hurt the most.

By: Scott in CA

Scott in CA — Wed, 07 Dec 2005 22:07:52 +0000

The Fremont plant is, I believe, the only UAW plant that Toyota has. The union has threatened to strike a few times, but that would be a bad idea since Toyota would close that plant and move it down South if that happened. By the way, I have a new Nissan Frontier. It was $17,000. I got a $1500 rebate. Great truck. It's made in Tennessee. The factory that makes them is the most productive auto plant in the US. The workers there have turned down UAW attempts to unionize them THREE times.

By: Noreaster

Noreaster — Wed, 07 Dec 2005 20:46:42 +0000

GM's problem now is same one afflicting many heavy industries - defined benefit plans. Many of these companies instituted these plans long time ago when they were much more labor-intensive. More workers could easily support a small number of retirees (with shorter lifespans.) But as these companies shed workers by modernizing facilities, it also meant fewer contributors to a defined-benefit plan. To top it off, retirees were living longer to boot (and medical cost skyrocketing).

These train wrecks are just going to keep piling up.....

By: RA

RA — Wed, 07 Dec 2005 19:53:02 +0000

Paying semi-skilled and unskilled workers like professionals is their real problem. They also have given unions retirement plans that GM cannot possibly meet. First they give away their own checking account. Then they give away the taxpayers checking account. GM management should be going to jail for this frad.

By: Bithead

Bithead — Wed, 07 Dec 2005 19:45:39 +0000

You mean they actually dared to give the people what they wanted?

By: DC Loser

DC Loser — Wed, 07 Dec 2005 19:33:24 +0000

I don't see how the unions at the Mercedes and BMW plants in Germany are making their cars any less desirable. Problem here is really bad management at GM. Ford made a great comeback in the 80s (did anyone read David Halberstam's "The Reckoning?) but pissed it all away when it decided to put all its eggs in the SUV and truck basket.

By: Bithead

Bithead — Wed, 07 Dec 2005 18:49:17 +0000

You forgot quality,

No, Fers, I didn't.

I consider, rather, that the two issues are connected, thus;

Which is going to give you a better quality of output:

* SOmeone who has a job regardless of what happens

* Someone who has to work to impress, thereby keeping his job?

By: Fersboo

Fersboo — Wed, 07 Dec 2005 18:33:19 +0000

The problems, here are several;

Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, and government.

You forgot quality, quality, quality, quality, quality, quality, and quality Bithead.

By: Bithead

Bithead — Wed, 07 Dec 2005 18:22:06 +0000

The problems, here are several;

Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, Unions, and government.

By: DC Loser

DC Loser — Wed, 07 Dec 2005 18:05:27 +0000

Rick, I think you are referring to the NUMMI plant in Fremont, not Van Nuys. Now the Fremont plant is one of the two Corolla plants in North America (the other is in Ontario).