why are ford and GM struggling so bad?

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Bullet360

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and are there any other american automotive manufacturers that are also struggling. and how likely is it that they will collapse and when?
 
Ford , GM and Boeing for more than a decade with their high ego's crowed about being the greatest and everybody must come to us.
well as what happens to all who do not plan for future market demands and stick their heads in the sand they left their most vulnerable part exposed and are taking a severe kicking.
there demise will occur when the government stops throwing your tax $'s at them. it would take 5 - 10 years for Ford & G M to become competitive again but with small and eco cars..
the asian manufacturers of small cars have taken over from the big gas guzzlers and air bus is getting so many orders they have got production contracts for years to come
 
I think they should give up already and outsource everything to China. Maybe Cherry or Great Wall could make the cars for them ang GM/Ford only take care of advertising, engineering, etc. They have good brands but the manufacturing process is bankrupting them.

Either that or halve the workforce, cut wages, cut benefits, etc. Workers there earn 30$ an hour just for sitting on a stool monitoring a machine which is decent but is 4X minimum wage for a job a high school dropout could perform.

Ford and GM are burning cash an at alarming rate and will run out of money in 1-2 years till they collapse for good and are bought for 2 cents a share by Abu Dhabi.
 
Three words: United Auto Workers.

GM pays 3 billion dollars a year in pensions alone.
 
they had this type of problem in the past, but its not a gas problem is that people got worried about wasting money on everything and not noticing that gas for the car is more important then that big screen tv in their house and things of that nature. I don't feel like they will collapse, the main problem was the state new laws about clean air that's what did in most of the car company's if you look at it this way usa has clean air the problem is the other country's that still use lead in their cars, and that don't care about the earth, what are they doin about them? nothing, People worry about money government stops caring for the people and banks are so consumed by their own greed that's what killing the american automakers, banks not gas.
Yes gas was a problem but we in the usa have it easy, over seas they're payin way more then we have so stop cryin over it. it hit what 4.30 a gallon wow, they pay an average of 12 dollars a gallon of gas.
 
They have been plagued for years by terrible union contracts. The UAW at one point had GM producing cars on a quota just to keep its people working regardless if the vehicles sold or not. They in turn cut their costs on materials for a number of years and stopped producing the high quality vehicles they where know for up until the late 60's.

Quality has got better over the years but they failed to address the issue of energy early on. While Japanese companies made more and more bullet proof smaller vehicles that consumed less fuel and lasted twice as long. Japanese companies do produce a majority of their vehicles here but have not bent to the pressure of unions and many if not all are still non union shops. They still provide decent wages but do not skimp on engineering or materials.

Recently GM forced the UAW to drop the wages of its workers in order to compete in the market again. The UAW complied realizing the it bit the hand that fed them and almost destroyed US auto companies. GM is really counting on it's Chevy Volt to bring it from near death and Ford and Chrysler have also followed suit to produce more fuel efficient cars to compete in the electric/hybrid market.

Americans as a whole are partly to blame for their love affair with SUV's and trucks. Foreign companies probably recognized this early on. They pretty much cornered the market on hybrids.

The big 3 are important to America...and I'm not anti union...but the unions have got tons of power that they need to handle a little more carefully. Ford, Chrysler and GM need to start building cars that are engineered in the traditon of the old days and they will win back consumers.
 
When gas hit $4.50 a gallon what did they have to offer? Basically the same line of fuel guzzlers. In a nutshell absolute lack of foresight.
 
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