Are The Big Three Sinking Because They Build The Wrong Cars Or Is That The Biggest Myth Ever?

Are The Big Three Sinking Because They Build The Wrong Cars Or Is That The Biggest Myth Ever?
It must be said that these luxury woes help refute the biggest myth about Detroit: that the Big Three are sinking because they build the wrong cars. If that’s the case, then why are unsold Mercedes piling up on the docks of Los Angeles and Long Beach? The only difference is that import and luxury brands are financially healthy enough to muddle through, and the Big Three are not.

The situation may ultimately benefit luxury brands and models that people perceive as being good values. Acura comes to mind. And although humble Hyundai was criticized in some corners for gambling with the Genesis — its full-size luxury sedan with a $35,000 price that undercuts competitors by $10,000 and more — its full-size luxury sedan with a $35,000 price that undercuts competitors by $10,000 and more — the Genesis may have the last laugh.

Here's the key quote from this article: "The only difference is that import and luxury brands are financially healthy enough to muddle through, and the Big Three are not."

Is he right or has he been living in Detroit too long?

Let us know what you think...

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gkearns56gkearns56 - 1/10/2009 2:25:44 PM
+1 Boost
Past and present cars like Pontiac Aztec, Buick BoatMaster...I'm mean RoadMaster, Chrysler Pacifica, Chrysler Sebring, Pontiac Fiero, Chevy Colorado truck, K-car, Ford Aerostar, Pontiac Sunbird, Ford Pinto, AMC Gremlin, Buick Skylark, Jeep Wrangler. Need I say anymore. UAW1 you're so full of yourself. These are only a partial inventory of CRAPY, UNRELIABLE cars the BIG 3 have built......and they still haven't learned (otherwise they would be standing in line for bailout money).


olscuulolscuul - 1/9/2009 8:17:26 PM
+3 Boost
for most people 'imported' has a bias that is perceived as 'better' mostly if from europe.
if you had most people make a choice between a domestic or imported bottle of wine, which would that choose?
with cars, imported is a broader term, and some prefer to have sake. :)



LexSucksLexSucks - 1/9/2009 8:40:28 PM
0 Boost
For the most part. American cars are crap.


wooodwoood - 1/9/2009 9:55:14 PM
+4 Boost
I agree with audispy. The big three are too focused witht he US market alone that they cannot complete elsewhere. Unlike the other companies which are globally balanced producing "global cars" instaead of US specific models.


91z4me91z4me - 1/10/2009 3:32:10 PM
+2 Boost
Actually GM and Ford's overseas divisions are doing quite well, it is only the US operations that are having difficulties. So I wouldn't say they are US focused, but rather they didn't anticipate the changing wants/needs of the public OR the rapid fluxuations of gas prices.


Designer1Designer1 - 1/9/2009 10:50:41 PM
-1 Boost
They're sinking because they build the worst cars in the world, after the Russian made of course.


veyron1001veyron1001 - 1/10/2009 11:14:35 AM
0 Boost
Yet BMW is recouping from their losses by making diesel 1 series cars and what is GM doing? Hmm what was that word? It started with a b hmm. O yea they are begging for bailouts to continue their shitty workmanship.


thstonethstone - 1/12/2009 4:32:04 PM
0 Boost
The problem with Caddy (barely) beating BMW is that it won't result in many additional sales. 99.9% of BMW buyers do not cross shop Caddy's.

And if Caddy really wants to beat BMW, then they will have to build the best cars in the world for 20+ years, not just one model. Where is Caddy's 335i competitor? Where is Caddy's X5 competitor? Where is Caddy's 7-series competitor?

One decent model does not make Caddy a luxury performance brand capable of competing with MB or BMW.


BMWRUBMWRU - 1/10/2009 1:05:36 PM
-1 Boost
Why are we even discussing this. Big three building wrong cars and crappy cars is not a myth but a fact. They got themselves into this mess and now we are all going down with them.


clsboyclsboy - 1/10/2009 1:28:12 PM
0 Boost
No one has mentioned the leeching UAW...


100tnega100tnega - 1/10/2009 6:52:10 PM
0 Boost
Sadly, I figure 20% of current domestics are spot-on and exciting. The other 80% are either complete failures or duplicates under a different a sister nameplate. Unfortunately, all diluting and bastardizing the brands.


AutoknologistAutoknologist - 1/12/2009 5:44:22 AM
+1 Boost
It's a combination of issues; but I believe it boils down to one core problem: Profit has been,and is, more important than the product.(although, there are signs that the product is slowly rising) This happened a long, long, long time ago and despite many attempts (for the most part unsuccessfully: IE; Saturn and what it was suppose to do?) to change this deeply rooted thinking, nothing has worked to change it enough. Unless this thinking is changed (permanently) I do not see a rosy future for the domestic auto industry. Kind of like America in many ways, but that is another subject.
Sad.


PorschinatorPorschinator - 1/12/2009 4:01:00 PM
+1 Boost
GM and Ford Trucks were #1 and #2 best selling vehicles in 2008 despite any rumors. The main problem with GM and Ford is that they refuse to look beyond 5 years and get behind the trends. Creating new trends or technology is expensive and current UAW/building costs prevents GM/Ford from being innovative. Yet things have changed after contract restructuring with UAW and Big 3 are learning from their mistakes.

Most Americans prefer large to mid-size cars and trucks, BUT due to fuel costs they are forced to buy small cars. Big 3 is finally focusing on small cars which will take time to catch up to Toyota and Honda. Ford is now on par with Japanese makes in reliability/quality with GM making progress. So until then Japanese automakers will rule small cars since they have done it so well for decades. Lets see if VW will overtake them all...as promised ;-)


thstonethstone - 1/12/2009 4:21:45 PM
+1 Boost
The Big 3 built their future on trucks and SUV's. They were unwilling to envision and plan for a future where middle America stopped buying trucks and SUV's and instead wanted reliable high mpg vehicles. Then, they collectively spent more than $30B of their own cash to continue to prop up and support vehicles that would not sell.

While its not fair to compare any of the Big 3 to MB or BMW (like comparing apples and tomatoes), the Big 3 can and should be compared to Toyota and Nissan. And yes, Toyota and Nissan have both seen big drops in sales, however they planned for $4 a gallon gas and not only have vehicles that will sell during the downturn but they conserved their cash as well.

Want some obvious examples? Why did GM/Chevy develop not just one, but THREE versions of the Corvette? Did Toyota or Nissan or Honda spend that money developing sports cars? No, they put it into the Camry, Accord, and Altima which rule their segments. What about the new Camaro? Why didn't GM spend the Camaro development money on the Volt five years ago?

The car business is all about having the right vehicles at the right time and the Big 3 simply missed the boat this time around and it may cost them their companies.


LauderdaleDriverLauderdaleDriver - 1/15/2009 8:06:41 PM
+1 Boost
The comment that "Toyota and Nissan planned for $4.00 a gallon gas" is just silly. The Japanese and French governments tax gas to that level, because they are concerned with maintaining their nation's financial health, unlike our government, which wants to bribe citizens with artificially cheap oil.

French (Renault/Nissan) and Japanese citizens have had $4.00 a gallon gas for years, and the national fleets are adapted to this reality. It isn't corporate brilliance, it's rational energy policy.

The management failure is in Washington, DC.

Americans like big SUVs and Trucks, and just like GM, Toyota, Nissan, BMW, and Mercedes have gone after that lucrative market with a vengeance. Of course, getting factories given to them by state governments, along with massive tax breaks, helps them be "more efficient," but it's not exactly the capitalist behavior that we now demand of our own industry.


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