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Posted by MikeC on Friday, November 28, 2008 at 09:08:02 :
In Reply to: Does Chrysler Deserve Our Help? posted by MoparNorm on Thursday, November 27, 2008 at 09:19:41 :
Simple answer? No, they do not deserve our help.
Much of GM and Chryslers' current problems stem from a product lineup that focused on pickups and SUV's. 4-5 years ago, everyone knew that the price of gas would rise significantly, including all 3 automakers. While the quality of the big 3 pickup and SUV lineup is second to none, they have a mediocre reputation in the fuel efficient market-the only market that is currently moving any vehicles.
There is plenty of blame to go around, from the arrogance of upper management to the union job banks paying employees to do nothing. But the bottom line is they are manufacturing cars that few people want, and they have been behind the quality curve for a few years.
While it's hindsight, where would GM be if the Saturn lineup had focused on being a quality fuel efficiency leader rather than another bloated GM product? Where is the Chrysler answer to the Prius? Why did they let the Neon languish for so long and get outdated? Why are Toyota, Honda and Subaru still posting profits (albeit lower than last year) and the big 3 are deep in the red?
At this point in time I think the quality of the smaller vehicle lineup is on par with foreign manufacturing. But in the court of public opinion perceptions change ever so slowly.
Ford is actually poised with a pretty decent lineup. The Fusion has turned out to be a pretty decent car, but they blew it with the whole Taurus/Five Hundred fiasco. I've noticed them marketing the quality of their current lineup and its showing.
GM should either sell off or drop a number of divisions. Either Pontiac or Saturn should go, along with ownership in a number of foreign manufacturers. Try to find someone to buy Hummer or drop it all together, and focus on the core business lineup and make it second to none like they've done with the new Malibu.
Chrysler has already dropped the nameplate, and I understand they have some pretty decent products in the pipeline that could possibly be their salvation. Possibly Jeep should be sold to raise operating capital to get them through until those products are ready.
As I sit here typing this I heard a GM advertisement for the Chevy Tahoe. I don't ever remember hearing ads for the Malibu, Cobalt or other fuel efficient vehicles-the ones people are currently buying. More proof that GM just doesn't get it.
The big 3 made the mess they are in, and they should be required to fix it themselves. Not with a loan or handout with my tax dollars.
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