Wichita Business Daily

Why is General Motors too stubborn to improve Build quality in their cars.?

So many Japanese car companys (eg. Toyota, Honda, Nissan etc.) make better cars and invest better than G.M or Ford. WHO MADE MONEY Honda made $5 billion in 2006 Toyota made $16.37 billion in 2006 WHO LOST MONEY General Motors lost $1.978 billion in 2006 Ford lost $12.6 billion 2006 Does this prove that Ford and G.M. may go bankrupt eventally.

Public Comments

1. All new ford are great there europe inspired tech. they have hybrids that are cheaper and fuel comsuption is better the power to weight ratio is better and over all there performance is good. if they make a car that can run tap water they have it made ;)
2. Honda non union labor and out source only to non union labor shops Toyota non union labor and own 97% of their suppliers of parts etc.. both do it because they know the employees end up with more money on their pocket and keeps them happy, also if an employee is happy they take pride on their work and at the end end up buying their own product. Also this companies offer shares in the company to employees so they can feel more pride on their work. The value of the vehicles is retained as quality is not jeopardized because union agendas are not an issue. Working conditions are better for all employees not only the top 28% as it is on most Union shops. General Motors Union labor at a cost 43% higher than non union labor yet employees take 23% less pay home. Ford same problem but both will have to make some changes necessary to compete increasing their out sourcing to non union labor it only makes economic sense don't you think?.
3. Who cares? Let GM go down the drain, let their crap cars rust away to nothing. The classic muscle cars and trucks will be all that's left and we can enjoy those.
4. I own a shop, and this is what I think. I work on vehicles all the time, and see what comes into our shops to be repaired. Honda, and Toyota both make their vehicles right here in the U.S. with factories in several states. These are assembly plants, and they don't actually make much of anything here, but import the parts, and assemble them here. Many companies lose money, and find a way to rebound. GM and Ford both own major investments in many other car companies in other countries, so as far as them going bankrupt, I don't think that will happen anytime soon. Many of the foreign companies that ship vehicles here are actually owned by GM & Ford. I don't think GM is too stubborn to improve their quality. I think the quality of the foreign vehicles is falling quicker than one might expect. Flood any market with a quality vehicle that lasts, and soon you start to see sales fall off sharply after a few years. A company can make a vehicle too good, and bury themselvs by doing so. The big three knows this, and given the high cost of shipping parts to the U.S. means; When these vehicles do finally start to fail, the cost of repairing them is more than the vehicle is worth. I think its a waiting game, and with some tweeking in quality at all 3 American made vehicle companies should begin to make it cheaper to own & operate one that is made here. I own a 94 GM product that has 250,000 miles on it now, and still runs good, so I have got to believe the quality is there now. GM, Ford, and Chrysler have all been making these huge vehicles that dwarf any of the foreign vehicles, so when gas gets high enough, and they do some down sizeing, we will finally start to see the market turn around. Cost of manufacturing a vehicle here is so high because American workers demand a much larger salary than slave labor in a foreign country does. Right now, any repair work for a foreign vehicle is much more than repairing a domestic brand. An example is: To replace a clutch assembly in a Honda is around $1500. Compare this to about $600 for a Chevrolet or Ford. A timing chain breaks in a Toyota, or Honda, and it will break the entire engine. If the same happens to a Chevrolet or Ford, it can be repaired for about $500 give or take, so the cost of replacing the engine, or replacing a timing chain assembly is not hard to figure out. I think there is a market for all of them, and it will always be debatable as to the quality thing. I don't care to debate the point, but I am American, and I believe in doing my business with American companies whenever possible. If you will check on the latest figures, you may be amazed to find that Toyota, Honda, and Nissan are begining to fall in sales, quality, and have let greed take over their better judgment. I don't think the big three got to where they are by sitting on their laurels an doing nothing about the problems they have. The new Mustang is evidence of that. They have begun the fight, and we will see who is left standing when the dust settles. Sorry to say this, but I'll put my money on the American made vehicles every time. Besides I kind of like the idea of helping out the millions of people in the U.S that are out of work because so many people decided to buy foriegn goods. Take away the jobs, there is no money, and the sales of the foreign crap will nose dive. If we can't buy whats made here, then what will we do for jobs then? Its easy to bash domestic goods as long as you got a pay check coming in, but take away the buying power, and the tune will be a different song & dance, I'll bet money on this. Glad to add my 2 cents worth!!!
5. figures are deceptive...and check the latest consumer reports and satisfaction polls and repair frequency,,,many American cars in top 10,,,you r spouting info from 10 years ago
6. One day they may realize that people aren't as likely to keep buying substandard products.
7. As a 'car nut', someone who keeps track of every development in the car industry and works on cars, I believe this 'Japanese is better, period' mentality to be a grand misconception on the part of the general public. I own two Oldsmobile Cutlass Cieras. One has 184,000 miles on it and is 14 years old, still running great. If they were not a high-quality, well-designed product, I would not have bought two of them. Watch this. This video will change your America-hating ways. http://www.youtube.com/watch?v=zJI71XNi0-Q&eurl=http://fastlane.gmblogs.com/ Go to your Chevy dealership and look at it. Then look at the 2008 Camry and Accord. I have. GM is turning a profit now, by the way.
8. they want to but they can't. UAW got 'em hostaged. did you klnow that a UAW supervisor cannot even pick up a piece of garbage on the floor since he is there to supervise only? its against union policy. this is the kind of crap that drives any business to the ground.
9. WISERNO "hit the nail on the head". The main reason for the differences in money is because GM and Ford are union and there employees are given much better pay and medical and other benefits because of this while toyota and honda are not union and there employees do not receive the same benefits.