If the Big Three Fail, Will Anyone Really Care?
To the throngs of loyal, patriotic Americans reading this article, I already know what you're thinking.
How could I pose such a question? The domestic auto industry is the backbone of U.
S.
manufacturing! Hundreds of billions of jobs are tied to the industry! If GM goes, so goes the rest of the economy! If they fail, we'll all be standing in soup lines soon! Well, outside of the obvious hyperbole, (you) are right.
We will definitely notice, at least at the outset.
Ford GM and to a lesser extent Chrysler, are bellwethers of the American economy.
Mass automobile manufacturing was an American first and on its shoulders, grew a host of industries that employ countless people, and rise and fall with Detroit's fortunes.
But like the changes in the flailing financial services industry, is this all just part of a painful, but necessary "adjustment" and cleansing? Domestic auto loyalty runs deep I grew up in Philadelphia and had several relatives who lived in the city's far western suburbs.
Philly is as blue collar a town as you'll find anywhere and its distant environs may be even more so.
My grandfather was a resident of Norristown, PA, labored 50 years in a now defunct steel mill and would've been the perfect subject for one of GM's old "like a rock" commercials.
In his thick, tobacco-garbled South Carolina accent, he told me on more than one occasion how he'd "never buy a foreign car," and during my time with him, he never did.
He was a Chrysler man, but after their quality issues in the '70's and '80's, switched loyalty to GM.
A 1972 Dodge Charger (I should've put that one in cold storage); a 1978 Chrysler Cordoba (with a burgundy landau top and interior); a two-tone 1985 Pontiac Grand Prix (I was with him when he ordered it and helped pick out the paint); a 1988 Pontiac Grand Prix (my grandmother still has it, with less than 50,000 miles on the clock).
Pure Detroit heavy metal was his choice and never would he squeeze into the "tiny little cars with the funny soundin' names.
" While Detroit slept...
Like many Americans, my grandfather was loyal to the domestics and through the support of people like him, Ford, GM and Chrysler thrived.
I remember him chiding my Dad when, after a nice run with a Ford Torino, he purchased a Datsun 510, followed by a slope-trunked Peugeot 504.
Little did my grandfather know that the tiny, rust-prone Datsun he laughed at was an early predecessor to the reliable fuel efficient cars that Japan is famous for today.
In 1980, after 100,000+ miles, numerous Earl Schieb paint jobs and an engine overhaul, the 510 succumbed to the rust issues prevalent in Japanese cars of that era.
At the same time GM, Ford and Chrysler were still churning out the big, luxurious trouble-prone vehicles that my grandfather loved.
30 years ago, the writing was on the wall.
But through sheer size, wealth and good ol' American gumption, the Big Three forged ahead producing vehicles that loyal customers bought but that failed to position them to effectively navigate the impending industry revolution.
Business issues, not product ones To be fair, Detroit's product mix is not solely to blame for their troubles.
Of late, the big three's product development push is as laser-focused as ever.
While no one is looking, they are producing some of their best products in decades.
In my article "Eight domestic cars you must consider," I list several vehicles worthy of a second look that can compete with the best of Europe and Japan's offerings.
In DC Auto Industry Examiner Rick Trawick's article "Should the US auto manufacturers be saved" , he cites game-changing technologies like GM's E-Flex platform that will power the Chevy Volt and vehicles like the Ford's Fusion that are poised to position the companies for success.
The cars are good, but the business model they are being sold under isn't.
Cut off the tap to spur innovation, reorganization I am not convinced that throwing a wad of cash their way will change anything.
Perhaps what needs to occur is a difficult, but necessary distillation of the companies, down to the best that each has to offer.
GM and Ford have already sold off cumbersome, money-draining stakes in Suzuki, Jaguar and Land Rover, and other American nameplates like Hummer and Mercury may soon fbe on the chopping block as well.
Why not allow this process to continue? Why not let Ford, GM and Chrysler take a hard look at their businesses, make some hard decisions regarding them, and focus on the products that they can build their future around? It is likely that one of the companies may not survive and a decade from now, there may be half as many American cars on the road.
But if those cars are fuel-efficient, reliable, quality products with leading-edge technology, would anyone really care? It seems to me that a once unheralded Japanese automaker who will soon permanently assume the top spot, got its start here that way.
The big three's reign of worldwide automotive dominance has likely come to an end, but the opportunity to remain relevant is far from it.
How could I pose such a question? The domestic auto industry is the backbone of U.
S.
manufacturing! Hundreds of billions of jobs are tied to the industry! If GM goes, so goes the rest of the economy! If they fail, we'll all be standing in soup lines soon! Well, outside of the obvious hyperbole, (you) are right.
We will definitely notice, at least at the outset.
Ford GM and to a lesser extent Chrysler, are bellwethers of the American economy.
Mass automobile manufacturing was an American first and on its shoulders, grew a host of industries that employ countless people, and rise and fall with Detroit's fortunes.
But like the changes in the flailing financial services industry, is this all just part of a painful, but necessary "adjustment" and cleansing? Domestic auto loyalty runs deep I grew up in Philadelphia and had several relatives who lived in the city's far western suburbs.
Philly is as blue collar a town as you'll find anywhere and its distant environs may be even more so.
My grandfather was a resident of Norristown, PA, labored 50 years in a now defunct steel mill and would've been the perfect subject for one of GM's old "like a rock" commercials.
In his thick, tobacco-garbled South Carolina accent, he told me on more than one occasion how he'd "never buy a foreign car," and during my time with him, he never did.
He was a Chrysler man, but after their quality issues in the '70's and '80's, switched loyalty to GM.
A 1972 Dodge Charger (I should've put that one in cold storage); a 1978 Chrysler Cordoba (with a burgundy landau top and interior); a two-tone 1985 Pontiac Grand Prix (I was with him when he ordered it and helped pick out the paint); a 1988 Pontiac Grand Prix (my grandmother still has it, with less than 50,000 miles on the clock).
Pure Detroit heavy metal was his choice and never would he squeeze into the "tiny little cars with the funny soundin' names.
" While Detroit slept...
Like many Americans, my grandfather was loyal to the domestics and through the support of people like him, Ford, GM and Chrysler thrived.
I remember him chiding my Dad when, after a nice run with a Ford Torino, he purchased a Datsun 510, followed by a slope-trunked Peugeot 504.
Little did my grandfather know that the tiny, rust-prone Datsun he laughed at was an early predecessor to the reliable fuel efficient cars that Japan is famous for today.
In 1980, after 100,000+ miles, numerous Earl Schieb paint jobs and an engine overhaul, the 510 succumbed to the rust issues prevalent in Japanese cars of that era.
At the same time GM, Ford and Chrysler were still churning out the big, luxurious trouble-prone vehicles that my grandfather loved.
30 years ago, the writing was on the wall.
But through sheer size, wealth and good ol' American gumption, the Big Three forged ahead producing vehicles that loyal customers bought but that failed to position them to effectively navigate the impending industry revolution.
Business issues, not product ones To be fair, Detroit's product mix is not solely to blame for their troubles.
Of late, the big three's product development push is as laser-focused as ever.
While no one is looking, they are producing some of their best products in decades.
In my article "Eight domestic cars you must consider," I list several vehicles worthy of a second look that can compete with the best of Europe and Japan's offerings.
In DC Auto Industry Examiner Rick Trawick's article "Should the US auto manufacturers be saved" , he cites game-changing technologies like GM's E-Flex platform that will power the Chevy Volt and vehicles like the Ford's Fusion that are poised to position the companies for success.
The cars are good, but the business model they are being sold under isn't.
Cut off the tap to spur innovation, reorganization I am not convinced that throwing a wad of cash their way will change anything.
Perhaps what needs to occur is a difficult, but necessary distillation of the companies, down to the best that each has to offer.
GM and Ford have already sold off cumbersome, money-draining stakes in Suzuki, Jaguar and Land Rover, and other American nameplates like Hummer and Mercury may soon fbe on the chopping block as well.
Why not allow this process to continue? Why not let Ford, GM and Chrysler take a hard look at their businesses, make some hard decisions regarding them, and focus on the products that they can build their future around? It is likely that one of the companies may not survive and a decade from now, there may be half as many American cars on the road.
But if those cars are fuel-efficient, reliable, quality products with leading-edge technology, would anyone really care? It seems to me that a once unheralded Japanese automaker who will soon permanently assume the top spot, got its start here that way.
The big three's reign of worldwide automotive dominance has likely come to an end, but the opportunity to remain relevant is far from it.
