Well here we are in 2006 watching the Delphi as they close 21 plants and lose their GM contracts for parts. We see GM building 6 plants in Mexico. And Ford and GM announce over 60,000 in lay offs. The total job losses are over 140,000 in the Auto Industry in the US. But why; GM now admits it has made mistakes, but it seems just like just last week during the Deming years and just yesterday in 2000 economic downturn when they went thru the very same thing. Okay skeptical; lets discuss what happened yesterday. In 2000 GM was getting killed in Europe and discontinuing Oldsmobile a family tradition since 1897. Think about it, they threw away their brand name to appease stockholders due to a 19% decrease in market share and poor earning dragging on the parent company? Many in 2000 asked; Who is next? Is Buick the next to go? Why not change the Oldsmobile to the New-mobile and offer Hydrogen Cell cars which come with waivers from consumer buyers from class actions suits? You see in 2000; Oldsmobile lost because they introduced the SUV too late and it was ugly and the designer screwed up. Bad design for the Urban Trend Setter, nobody would jump out of their BMW for one of those Johnny come lately, two years too late. Oldsmobile right out of the urban jungle, ugly, MOFO, SUV. I guess they did not want to compete with their other SUV models, but to kill a brand name was stupid. Meanwhile people wanted good performance and economy; plus looks and style. In 2000 we had Toyota building a V-8 engine factories for the new Tundra 4X4s and their new SUVs a conservative version SUV with power and a little lighter, so better mileage for those people who must stay in their SUVs, but their new big seller? The RAV. In 2006 GM is now behind the innovation curve again, getting killed by Toyota and Honda. Toyota took 11% in the first quarter of 2006 from Ford and GM. What are the Big US Auto Makers doing now? Downsizing again, laying off people and moving factories to Mexico? Surprised? Well you shouldnt be, I am not. The consumer needs cars with better gas mileage as gasoline hits $4.00 per gallon in summer of 2006; do you blame them? These US Automakers do not have the cars in the pipeline that Americans want to purchase and with war in Iran and 2006 Atlantic Tropical Hurricane Season, well what did you expect fuel prices to do? Go down? Consider this in 2006. |
