Agent009
Agent009
"If everything seems under control, you're just not going fast enough."
View My AgentSpace

Print this Page | Digg It | del.icio.us

Do You Agree? LA Times Blame Big 3 Problems On Unfair Foreign Competiton!
Massive government subsidies, protectionist rules and direct-equity investments by governments have resulted in past and present unfair cost and tax advantages for foreign automakers. The playing field is not balanced, and with government subsidies for foreign vehicle makers -- including both direct subsidies and indirect investments made by foreign universities in research institutions, for example -- U.S. vehicle makers can hardly be accused of squandering any competitive advantage. Indeed, American vehicle makers have never stood much of a competitive chance in the global market.

No free market actually exists in the automotive sector -- never has, never will. Add to this local vehicle homologation (European Union and Pacific Rim) and protectionist rules that make exporting a substantial number of U.S.-built vehicles to foreign markets a pipe dream. Furthermore, currency manipulation by foreign governments results in another unfair advantage in favor of overseas vehicle makers. Taking all this into account, you can see where U.S. automakers are today.


 Read Article
Do You Agree? LA Times Blame Big 3 Problems On Unfair Foreign Competiton!



Comments:

Images hosted in your AgentSpace can now be posted in the comments section using the following syntax (case matters):
[img]IMAGE URL[/img]
Example: [img]http://agent004.myautospies.com/users/150/Sample-Gallery/sample1.JPG[/img]
HSCenterconsoleHSCenterconsole - 9/5/2008 2:25:39 PM
+7 BoostDrop the Boost Up the Boost
At the end of the day, the lackluster products the Big Three produced for decades are the true source of their problems. Too many oblivious executives and greedy unions certainly contributed as well.

reply to this comment
bigmotovbigmotov - 9/5/2008 2:59:40 PM
+4 BoostDrop the Boost Up the Boost
Product product product!!! Was the government to blame even when they were doing well and selling well? They coasted through that stage, kicked back their feet instead of striving to improve, thinking us dumb Americans wouldn't notice while they hid behind the American flag. WRONG!!!

"Shame, really. But the facts are the facts. The bar keeps moving and Ford, Chrysler and General Motors are forever in catch-up mode. Have been since the first muscle car era became the first energy crisis. Hate to be the one to say it out loud, but Detroit remains a lap down....And if the members of the automotive press actually voted with their dollars instead of writing with their hearts, they would all be driving something from Japan or Germany. Well, the smart ones would anyway. The ones who don't live in Detroit."

http://blogs.edmunds.com/straightline/2008/09/detroits-big-problem-its-cars-are-never-the-best.html

reply to this comment
ThierryHenry14ThierryHenry14 - 9/5/2008 3:05:57 PM
+3 BoostDrop the Boost Up the Boost
Well, if you know that the system is not fair, then get on board...

reply to this comment
snatchandgrabsnatchandgrab - 9/5/2008 3:17:25 PM
0 BoostDrop the Boost Up the Boost
You have to make good cars in order to sale. The number one selling vehicle in the U.S. is a pickup truck (f150). The rest of the cars Ford makes look like sh**. I am kinda feeling the new Lincoln MKX. I like Caddies and Vettes and I used to love Mustangs. Most people probably agree with me...thats only a few vehicles that are appealing out of the many that are produced

reply to this comment
PlanBPlanB - 9/5/2008 3:21:50 PM
+2 BoostDrop the Boost Up the Boost
What happened was the rest of the auto industry caught up to them and they didn't prepare properly. When Toyota and Honda were researching and developing hybrids back in the 90's, the Big 3 were still pumping out big SUVs and cheaply built sedans that all went to pumping up their bottom line. And it did. But by doing so they got caught seriously off gaurd by the imports and now they're paying for it. I will say that GM finally figured this out and they're best positioned to get out of this mess they got themselves into. Ford and Chrysler are another story.

reply to this comment
mini22mini22 - 9/5/2008 6:11:11 PM
+1 BoostDrop the Boost Up the Boost
Up until recently(say in the last 7 or 8 yrs),the big 3 have been reactive rather then proactive. Although I cannot blame Chyrsler directly as it was owned by Mercedes.One problem that has persisted through the 70's fuel crises was the persistence on making big vehicles. The big 3 had a golden oppurtunity from the gas crises to really set out to develop fuel efficient vehicles.They did not. The Japanese have always made their money on the other end of the market(small vehicles) and only in the last 10-15 yrs ventured into the larger vehicle market. In my opinion I think Toyota has ventured too far.But this is the Big 3 mistake. The other is protectionism to foreign car makers in the US and the rest of what this article said.The combination has been near lethal.

reply to this comment
SixxFiveSixxFive - 9/5/2008 8:40:00 PM
+1 BoostDrop the Boost Up the Boost
What a typical response from the "Big Three" = unfair competition.

reply to this comment
cktoocktoo - 9/5/2008 11:44:08 PM
+2 BoostDrop the Boost Up the Boost
Ok, Mr. Roby, what are these "fair rules" that Washington should lay out for your numbskulls to get back on track...let me guess, low interest loans and bailouts from the taxpayers? Furthermore, the Big 3 has known about these legacy and medical costs for years, it's not like they just sprung up one day out of the blue.

reply to this comment
toolatetoracetoolatetorace - 9/7/2008 6:58:42 PM
+1 BoostDrop the Boost Up the Boost
Ok , lets put health care as a liability to the taxpayers like the Japanese doo


tkindredtkindred - 9/6/2008 12:14:40 AM
0 BoostDrop the Boost Up the Boost
Didn't Chrysler get bailed out by our tax dollars? Isn't that government help?

reply to this comment
AutoknologistAutoknologist - 9/6/2008 3:30:26 AM
+2 BoostDrop the Boost Up the Boost
First off, Chrysler, at that time led by Lee Iacoca, was 'bailed out' by the govt in the form of a large,(I believe 1 billion dollars at the time), LOAN. Not a 'bail out gift' They used it wisely and, thanks to the minivan they invented, paid the govt back, with interest, in less than 5 years. I believe they were given 10yrs to pay it back. So, yes they were helped, but not subsidized. Like other govt's do for there respective auto industries. (ie; Japan, Germany, China, etc). Not to mention that many of these countries still impose much greater tariffs and fees on car imports that result in the imported vehicles being much more expensive to own than there homegrown vehicles. The US has never reciprocated with the same level of tariffs against imports, thus, with the subsidies the import govt's provide to the homegrown car industries to help keep there exported product prices artificially low, and the low tariffs we charge for what they import to us, plus the fact that many of these 'imports' are very, very good vehicles; there market share here as continue to grow and grow every year. Thus we come to the real issue as to why the 'American' car companies have continued to falter; (here it is. in all it's capitalistic glory):: The real issue is; Profit is more important than product or loyalty. Profit is why the Americans companies have never allowed themselves to build a truly great small car. They could have. The deisgners and engineers wanted to. But the bean counters had to be sure It would be somewhat profitable. So the interiors were always just not quite as nice. the drivetrains not quite as smooth. The fit and finish not quite as good. Less standard or even available features than the imports. The suspensions not quite as taut. So, to this day, there really is not a homegrown small car sold by an American car company that is as nice or desirable as a Civic or a corolla. They are reliable and economical,(heck Ford has the highest Customer Satisfaction rating as far as reliability goes in the industry. Higher than Toyota!) But many American cars continue to fall short on that 'IT Factor' that the imports continue to hit, time after time. Throw in the fact that the imports continue to be, for the mosr part, very good cars; the loyalty factor comes into play and the repeat business numbers they generate far exceeds the American brands. Along with the avoidance by the American co's to realize, at least until the last 5-7 years, that they too had to build vehicles for a world market, not just the American market. They are only now, Saturn being the shining example of this, truly utilizing the vast resource for good vehicles that GM and Ford have available to them outside of the US. The imports have for years, with a few exceptions, built there vehicles to be sold all over the world. I could go on, but it's late and I'm tired.
Later.

reply to this comment
HyundaiHyundai - 9/6/2008 10:55:35 AM
+1 BoostDrop the Boost Up the Boost
Holy effing PARAGRAPH Batman!


PrancingHorsePrancingHorse - 9/6/2008 5:53:39 AM
+1 BoostDrop the Boost Up the Boost
Poor is the man who hides behind his shortcomings by blaming others, Ayn Rand.
This seems to be the mantra of the Republicans and 90% of the US, lately blame everybody else but be very afraid to look in the mirror,Palins the biggest Hypocrit,joke in the US.

reply to this comment
huu76huu76 - 9/6/2008 12:02:21 PM
-1 BoostDrop the Boost Up the Boost
'Foreign' meaning Japan.

Prancingho,
You're not aware that Obama is the protectionist while McCain likes free trade because he feels it will force the US to be more competitive and develop industries that can't be outsourced.
Of course not, you just regurgitate whatever the Obama lovin' media spouts out.

Granted there are restrictions overseas but what makes GM think the Japanese would buy US cars if they were available? China buys Buicks but that won't last long.

The problem is that the US has become addicted to everyday low prices and buying 9 of everything because slave labour goods are so cheap.

A big part of the problem is that unions have a tendency to demand too much (i.e. Boeing rejected an 11% wage increase over 3 years and bonuses worth $34,000). From outside looking in, I think Boeing's offer was fair. They saw how health benefits drained GM and they want to avoid it.

reply to this comment
PrancingHorsePrancingHorse - 9/7/2008 1:31:04 AM
+3 BoostDrop the Boost Up the Boost
Asshat 76 i am an independent,so back in your trailer and go back to making kids with your cousin.

reply to this comment
huu76huu76 - 9/8/2008 11:33:44 PM
+1 BoostDrop the Boost Up the Boost
prancingho,
For an independent, you shoul be more immersed in the issues and positions, instead, you repeat whatever the media says becuase you can't be bothered to do any research.

reply to this comment
rawbuxrawbux - 9/9/2008 2:49:41 AM
+1 BoostDrop the Boost Up the Boost
I live in L.A. County so what does a liberal rag L.A. Times know about the car business. They know the newspaper business and they are losing market share and customers faster then anything!! They can't even make what they are suppose to be good at profitable! They're going in the RED! So, maybe they should quit craming there anti-american car business propaganda own our throats!

reply to this comment
To post a comment for this story, you must first Login.

If you do not have an account, you will need to Register (It's Free!).

Most Recent Stories
FORD CEO Alan Mulally Will Drive to Washington D.C. To BEG For Money - But What Car Will He Drive To D.C.? His Lexus, OR Perhaps Maybe a Ford Product?Industry Sales Likely To Be Down 28% In November GM May Fare WorseLotus Evora order list includes 007 and Top Gear hostsEveryone Is On A Budget, But Are These 5 Your Choice To Keep Living Large?Could The Detroit Recovery Plan Really As Simple As Merging In To One?Fiat Abarth 500 receives Top Gear’s “Best Hot Hatch” awardDetroit Tells UAW They Can No Longer Pay For Idled Workers To Play Checkers2010 Porsche Panamera auto show debut delayedSwedish Government Confirms Discussions With Volvo and SAABBMW not putting MINI E into mass-productionTop Gear Car of the Year 2008 award goes to VW SciroccoNew Mitsubishi Lancer EVO X FQ-400: Limited Edition with 405HP2009 Nissan 370Z Driven in Japan2010 Jaguar XF-R spotted nearly finishedUAW wants limits on carmakers' executive payDoes It Hurt The BMW Brand Image When They Are Being Sold At Costco?2008 Essen Motor Show: Vw unveils Touareg North Sails EditionCarlsson releases limited edition automatic watchVideo: 2009 Mini Cooper Cabrio in actionPorsche Museum to open its gates on 31 January 2009Vw Eos White Night Edition unveiled at EssenUPDATE 1-German carmakers make fresh move to cut outputAudi R8 GT3 LMS Hits the Track (Video)GM UK takes two Top Gear awardsBMW Konfigurator Using Microsoft Surface for Product NavigatorHow About A Piece Of Kim Kardashian's Booty For The Holidays?Cars They Wish You'd Forget About - "Hey, they can't all be winners!"Acura V8 won't Arrive Until 2015: ReportBrabham M3 revealed at the Essen Show2008 Essen Motor Show: Dodge Challenger SRT8 by EibachNissan 370 Z Japanese Promotional VideElite Carbon Maserati Gran TurismoMarangoni M430 based on Alfa Romeo Mi.To2008 VW Scirocco Collectors’ Edition debuts at EssenFord at the top of the list for safety in accidentsBamford releases custom Rolex Daytona Ferrari red watchRolls-Royce RR4 to reveice Bmw’s iDrive technology2009 Vw Golf VI by ABT shows up at EssenConfessions of A Test Drive Junkie: Funny Experiences & Observations Behind The Wheel of Other People's Cars!Nissan changes its mind regarding the 2009 Chicago Auto ShowNew details of the next-generation of Audi A2 revealedTop 10 Most Popular Sport Utility PicksFar From Perfect? Mercedes-Benz ML320 BlueTec Diesel SUVQuestion Of the Day: Just How Long Will Gas Stay This Cheap?A New Maserati Quattroporte With A $35K Black Friday Discount? And The Spies Say DON'T Buy It?Confirmed: Audi To Replace R10 With R15 TDi In 2009GM Asks FAA To Keep Jet Movements ConfidentialBMW And German Brands Worry Openly About the Biggest Crisis Since WWIIShould Detroit Rebuild Itself Around the Slovakian Manufacturing Model?Reflections on the Acura NSX