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GM is NOT crap!
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Posted by Allan (more from Allan) on Sun, 13 Jul 2008 09:59:57 Share Post by Email
In Reply to: Re: What this would do for parts availability?, SylvainQc, Sun, 13 Jul 2008 07:16:38
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GM products are regularly bashed because of built in bias held over from the 70s and 80s. Difference in measured quality between GM, Ford, Toyota, Honda and others is pretty negligible and in many cases GM products out shine the Japanese favorites. Financial losses are also interpreted as an indication of their incompetence which I think affects consumer perceptions of their products.

GM's success has been encumbered to large degree by the legacy costs related to retiree pension and rising health care costs for both current and retired workers. Than bakes in around $2000 extra cost/vehicle-which is huge when consumers are making purchase decisions based on a couple hundred dollars difference in prices. Historical labor contracts have killed them. And when they've resisted those demands, the unions have called strikes that cost the automaker more in a few months than they can recoup in profit over a decade.

By contrast, companies like Toyota and Honda aren't shouldering that burdon. Japan, other Asian, and European countries have government funded health care and pension systems. While I don't advocate for government health care & pension systems, I am convinced that our employer provided system hurts US companies at home, and abroad.

Neither the Japanese, or Europeans have a monopoly on automotive engineering and manufacturing talent -our engineers are just as bright as theirs.

posted by 66.227.254...


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