US auto industry will dissapear

[zndkw1n]

http://www.drive.com.au/Editorial/ArticleDetail.aspx?ArticleID=59507&vf=26

Says only a nobel prize winner.  Gosh im so glad the senate shot down their requested free no strings attached 21billion rescue package.  Serves them right, those lazy ass fat spoiled us auto workers, and their private jet flying CEOs.   

http://www.theaustralian.news.com.au/story/0,25197,24789874-36418,00.html

  Im so glad I drive a japanese car, and that i bought a japanese van too.   

[|iR|Focalor]

http://www.drive.com.au/Editorial/ArticleDetail.aspx?ArticleID=59507&vf=26

Says only a nobel prize winner.  Gosh im so glad the senate shot down their requested free no strings attached 21billion rescue package.  Serves them right, those lazy ass fat spoiled us auto workers, and their private jet flying CEOs.   

http://www.theaustralian.news.com.au/story/0,25197,24789874-36418,00.html

  Im so glad I drive a japanese car, and that i bought a japanese van too.   

It's not the fault of the auto workers at all. It's a combination of many things. The entire automobile industry has teamed up with the big oil companies in order to strong arm us all into continuing to drive gasoline powered vehicles when the technology has been there for a long time to phase them out. The upper management has lined their pockets as fat as they can get away with. The unions have done their fair share of pirating too. They've helped out the voiceless workers, but at the same time they've taken a greedy attitude as well which has further served to drive the price of everything up through the roof.

I think it's a shame that these average joe-schmoe blue collar workers are going to pay the price, but this is exactly what this planet needs. I consider it due justice. If the oil companies are allowed to continue in their racket, all life on the planet will suffer greatly. There's an awful lot of cancer popping up in folks these days. I'd wager a large chunk of change that a lot of it is caused by the burning of gasoline. FACT: Prolonged exposure to gasoline fumes has caused cancer in laboratory rats.

[The Happy Friar]

It's not the fault of the auto workers at all.

The entire automobile industry has teamed up with the big oil companies in order to strong arm us all into continuing to drive gasoline powered vehicles when the technology has been there for a long time to phase them out.

they're one and the same.  People making ~$150k a year (includes benefits) don't want to loose to a competitor who's workers make ~$62k a year (includes benefits).

I don't feel sorry for any of them.  Workers + unions didn't care when they were getting what they wanted, office staff didn't care either.  Now there's no $$ left & everybody's pointing fingers.  The old say "when life gives you lemons make lemonade" for the auto guys is "when life gives you lemons, keep selling oranges, bad mouth the competitor who is selling lemons, then cry help when nobody wants YOU lemons after they are happy with the other guys".

What's next, I get drunk, drive my car off a bridge & get a letter from pres oboma saying how sorry he feels that I'm an idiot & someone will pay all my expenses?

[zndkw1n]

Well, the main reason the bailout was denied to them, was because the unions did not want to give up their fat paychecks and benefits.  So i guess they have it coming when it all implodes to oblivion. 

[X'tyfe]

Surprising to see that the fat pig capitalist country not giving a shit about these companies, but then again maybe not
Let them all burn for their greed and gluttony. It's a shame that the middle class will also suffer from this, but it's a needed sacrifice

[RRBM [NL]]

Here is the car of the future that will save the car industry  :

http://automobiles.honda.com/fcx-clarity/


  

[quadz]

Here is the car of the future that will save the car industry 

If only it didn't take so much energy to obtain the hydrogen...

[playboy]

 

[Whirlingdervish]

so the worthless moneygrubbing bankers we have that caused the lack of liquid funds that is dooming these companies are going to still be in business thanks to government handouts of my tax money, but the manufacturing sector they screwed is going to take the hit and what could be millions of american workers will be negatviely affected.

Maybe one day Honda will make a truck that isn't incredibly gay, but in the meantime the world needs american vehicles that actually have a bit of steel in them.

We could do without a few investment banks and firms tho.

[reaper]

Just let everything collapse, the free market will fix it.

[jägermonsta]

think im going to start a farm and buy a sword.

[FYATroll]

Im sorry folks but the gm auto workers are hardly the middle-class that you envision.....they get paid alot of money for a job that requires no higher education and as long as the company can pay it then so be it.....however when the company cannot pay it..then the workers should have the sense to notice that what they have had for the last 50 years has been fantastic and now they need to return to planet earth and live with the rest of us. However, they wont realize it and instead of taking a pay cut will just end up taking a job cut as in GM goes under. Brilliant move Ron Gettlefinger.

And derv...how is the banking system the cause of the automotive sector collapse????One does not directly effect the other...i know this because Honda/Toyota/Hyundai/and every other foreign manufacturers are not in trouble. I really do not understand how the financial collapse connects with the auto collapse....clearly the recession hurts the auto motive industry and the recession was driven by the financial collapse...but if a recession didn't take place now it would happen eventually and the same things would be happening to the auto industry...recessions happen and when they do you can easily seperate the good companies from the bad..GM/Ford/Chrysler are bad because they were nowhere even near prepared for any sort of recession/gasoline spike. So...if they go bankrupt because the auto-workers wont concede their very large portion of pie..so be it. I am fine buying a Toyota.

[Whirlingdervish]

I didn't say the banks were THE ONLY cause of sector's collapse, but that it has collapsed, they have no options to save their ass because the banks fucked up.  (I do however feel that the banks were one of the causes and played a large part in making the collapse unbearable when it didn't have to be)


currently the US automakers cannot get loans from the banks to have liquid funds to operate their business, and their only other option is to have people invest in them, which considering the state of our stock market is not an option.
(if they file bankruptcy they wont be selling any stock for a long time)

Not every viable business in the US of A runs on it's profits at all times, and in the case of manufacturing companies you buy the materials and provide the labor BEFORE you make sales, leaving you screwed if the stock market and the economy take a shit and nobody can afford to buy the goods in which you've already invested the entire cost to make.

During periods of change and economic instability, many companies of that scale are forced to fall back on lines of credit (Like Ford is asking to have available right now) to remain solvent in the short term so they can continue to build stock that can be sold for a profit in the long term. When they are booming, they use the money provided by stock offerings to help grow their company.

None of this money is available right now, because the banks that would have provided it are strapped for cash after backing and reselling crap mortgages that they are now upside-down on. The banks' inability to loan money helped cause the economy to nearly crash 3 months ago.

Had they not undertaken that practice and fucked themselves and us with them, they would be able to support the US auto makers in their time of need (which the banks helped to cause) with lines of credit like they had in the past.

I say the banks helped to cause that "time of need" because the market instability and the resultant economic woes it caused the average middle-class car buyer led to situations like this years 35% drop in sales at GM which has a nearly 25% market share in all cars sold in the US.

US automakers are NOT failing because they are suddenly selling less cars than Honda or because they aren't competitive with Toyota.

They're failing because everyone is selling less cars because very few people have money to be buying cars, and after watching their 401Ks drop a up to a 3rd of their value in less than 3 months, I don't blame buyers for feeling like they have better things to spend their money on than a new car.

this was the difference in sales for 2008 vs 2007 from right before the economy nearly crashed:



It got horribly worse for everyone involved when the mortgage crisis finally began to register, but beforehand everyone but Honda was taking a hit due to the high gas prices earlier in the year. (honda offers a buttload of hybrid models and the gas scare saved their asses, but they still dont sell nearly as many cars)

In essence, the US automakers weren't doing much worse on average, than Toyota (who has nearly the same market share as the market share average of the US companies) until the banks fucked us all by being greedy and trying to make money out of nothing while ignoring the risks to their investments.

Unfortunately, US car manufacturers started off on the wrong foot because of earlier economic problems (up to $4.50 for a gallon of gas, chrysler being sold by daimler, etc..) and weren't in any position to weather another drop in sales unless they could take out loans.