Reply #41: Lousy contracts too

[dmallind]

I don't care what they pay the union guys within reason but signing contracts that limited their ability to introduce new production methods and processes because that would entail more automation or a more flexible workforce.

Promising cradle to grave health care and generous pensions for short term wage concessions without doing the math right.

Not pushing for universal health care to lower their costs.

Big 3 cars tend to be either ugly as sin (most GMs), bland and overpriced (Ford) or interesting to look at but horribly engineered (Chrysler). They have a longer production and revamp cycle than the foreign cos too.

But anything wrong with their cars per se is secondary. All have some cars with good appeal to some people, depending on their taste or priorities. Even with my generalities listed above, all of the three make some cars which I would be perfectly pleased to own, and even in some cases MORE pleased to own than foreign competitors. For example, if I lived in a climate where RWD was comfortable for me I would have had a Crown Vic years ago. Full sized comfort, low price, good durability, low costs of owership. If I ever decide I want or need a high powered sports car only the midlife-crisis looks of the Corvette would make me even think about anything else. Nothing foreign offers the same blend of power and handling in a reasonably comfortable sized car for that low a cost. Other examples out there too.

Their biggest problem is not their cars but their cost structure that means they can only compete on low profit margins and decontenting at every opportunity so their cars become less attractive BECAUSE OF their cost structure. A couple of years ago I bought a luxury car because I could finally afford one and had always wanted something very nice to drive. The Cadillac DTS would have been ideal. I'm not a canyon carver. I like big, comfortable, whisper-quiet, bells and whistles, some giddyup of course. So a FWD V8 luxo land yacht for under $50K would have been great - if the plastic and trim and switchgear didn't look and feel exactly like it came off a Chevy Cavalier. I ended up paying $10K more for a smaller V6 Merecedes E class because they had enough money left over to actually put componentry in worthy of the car itself. Sure it drove better than the Cadillac too but that kind of aggressive driving ability is way way down my priority list and I would have given it up in an instant for the better size and comfort of the GM if they could have put some more money into the car.

Am I blaming the unions? Partly, sure. But far from completely, or even mostly when it comes down to it. They demanded unreasonable guarantees and conditions and pay far in excess of the market rate for the skills and duties supplied. But so what? I want to get paid as much as I can, and want as secure and as predictable and accommodating a job as I can get too. Who doesn't? But the big 3 should have done a far better job of balancing short term costs and long time liabilities, plus used their considerable lobbying clout to solve the underlying problem - federal healthcare and retirement systems that would have obviated the need for those excessive demands, rather than squawking about CAFE.