Who's more responsible for the decline in of the big 3: Union or Management?

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I guess I want to apologize for my post above. Not anything I said in it, exactly. I just seemed to ramble as I did it in haste and I missed some of the things I meant to comment on as I read through this (extensive) thread.

I blame management with unions only a contributing factor. Personally, I’d like to see management play hardball with these guys … have messy strikes that make the news each night and each side make their case to the public. Make it a national issue. I think most Americans would come down somewhere in the middle when contemplating which ‘side’ to take. Maybe the compromise they'd inevitably make would reflect that.
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But labor’s just a small piece of the puzzle. I don’t believe for a second that it’s the cost of the vehicle that’s the problem. It’s the way the foreign makes (especially Honda & Toyota) seem to be better made right out of the box (even many of their little cars feel very ‘solid’) and hold up better years after the sale. People paid EXTRA for these cars … didn’t GM and the others get that? When selling, if you believe you are competing on price, then that’s all you tend to focus on and in the quality department, it’s a race to the bottom. You scrimp on everything making flimsily ... then over-spend on flashy promotions, rebates, etc ...

The result is people driving around in cars they aren't satisfied with and once bitten, they're often shy about going the same route. There are too many choices available these days.

A different issue is the corporate culture that the Big 3 have grown throughout the 20th Century. It used to be that the car companies practically dictated styling and other vehicle attributes to the buying public. They liked to build big, gaudy, clunky cars … and while America was growing in the 50s and 60s, these seemed to fit the bill pretty well for most traditional families. The foreign cars of the period seemed to be something of a joke by comparison. The beetle had a following and you could find nutty professor types on college campuses that drove BMW Isettas, etc … Other offerings from Mercedes, Volvo and BMW seemed odd/eccentric … and a poor value compared to American iron that was roomier, faster and cheaper.

However, rising gas prices, increasingly restrictive emissions and other changes in the industry meant that the Big 3 couldn’t build cars they wanted to … big, simple and production runs in the tens of thousands. And like a spoiled brat that doesn’t want to follow the new rules, they seemed to lose interest in making really good cars. It started when they made cars like the Pinto, Vega and Pacer … then came the Mustang II, GM X-body cars and K-cars. As VW and the japanese manufacturers' quality improved, the Big 3 looked more and more lost.

I think they have come along way ... but I keep running into more and more people buying their first foreign nameplate. Not sure how this could play out with a happy ending for them. They've had decades to get their act together but have spent too much of that time either counting beans or sticking their head in the sand.

--- Bror Jace
 
"The management of the company is responsible for everything, including the union agreement."

Exactly.
 
Blake Sobiloff hit the mark back on page 2.

GM spends $1,525 dollars per car sold to pay for healthcare and another $675 in pension costs. Each current worker is supporting 2.5 retired workers.

Around here, we call that a pyramid scheme. Other than social security, when has that ever worked over the long haul.

American cars may or may not be competitive depending on your personal views, but no one can argue they wouldn't be a lot better positioned in the market with $2000 more actual value in the vehicles...
 
Sorry to chime in late. Not that I much experiance in the topic compared to the oldies here.

I come from a GM family. Dad has been driving them ever since he emmigrated here. To this day he talks about his Buick V8 and how insurance for the 455ci GTO he always wanted was too much.

It saddens me that these three companies that epitomized American industrial strength, engineering ingenuity and incredible quality have come to this.

GM, Ford, Chrysler were all well oil machines to the 60-70's. The stupid things happening.

My 2cents worth? They got shoddy on quality. Complacency, they betted on market loyalty which faded to the imports. The imports grabbed the market share by doing what the Big III did to make them great. The Japanese learned from us well.

It is not a vehicle but let me give you a little vignette. In the 195O's my father's family imported a General Motors built Frigidaire fridge/freezer to Asia. It still has the original GM stamp on it as well.

It is still RUNNING to this date keeping the perishables cold.

That is what made GM such a symbol of quality and prestige. And unlike European stuff GM/Ford?Chrysler was affordable to the middle class.
 
The fat cats at the top have had no clear vision. Their product mix is terrible, having abandoned ENTRY LEVEL products (Corolla, Civic, Sentra, Hyundai)in favor of $8,000 per unit profit on their over-priced SUVs. With $3.50/gal gas looming on the horizon the market is REALLY INTERESTED in fuel economy and the BIG 3 have nothing to compete with these vehicles...sorry, but this is a cold fact. Throwing rocks at the lucky few (in comparison to the rest of American workforce)is not helping. Who here would not boast of UAW job benefits. (Point your finger @ your computer and look @ your hand...3 of your fingers are pointing @ YOU!} I suspect that going forward, many on this board will suffer eroding purchasing power as THEIR employers also make cuts. Just yesterday Kraft foods anounced an 8,000 employee reduction. It is a fact that most Import, first time buyers, return to that same manufacturer if they have a good experience. The college grad.looking for their first car, probably saddled with $50,000 of debt, has no where to turn except Asian imports. The big 3(soon to be the Middle 3)wanted all the Cream-but- none of the Crop. This story, however far removed from you it seems, impacts every American. This was bound to happen sooner or later as Gary Allan mentioned on the first page on this topic. I personnally think that hurricane Katrina, forcing fuel prices higher, made us realize just how broke, we as Americans are. I'm afraid the days of a couple of big trucks in the driveway is over for good.
 
I agree with H2GURU, a lot of import buyers (myself included) got their first import as a poor college student. That car was cheap to run, reliable and that impression stuck. Later, when that college student has graduated, gotten that good job and is looking for a new car, what do you think they'll be buying?
 
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