Please allow me to rant for a moment:
Living in Michigan, home to the Big Three, and easily the most influenced state by what does or does not happen with the auto industry gives me a bit of a different perspective on why or how things should happen. Sure, I've had more than enough family and friends work for all of them, we for the most part only drive American cars (outside of Mom, Grandma, and myself), and plan on driving only American cars (VW is still okay in my book).
If you want a simple answer, you aren't going to get it here. I could easily give you a quick rundown of things that have lead up to where we are:
- Poor fuel economy of the 1970s
- Lower levels of build quality
- Poor workforce leads to even lower quality
- Reluctance of companies to improve their products
- Overly optimistic sales figures, poor sales overall
- Poor product planning
- Press bias against The Big Three
One of the biggest issues that have come up recently, at least here in Michigan is the question of our state losing out to others for automotive contracts. One of note was Honda's decision to build a new plant in Indiana, despite the fact they were going through talks with our Governor at the time to bring jobs here.
There have been theories that she was too late (probably true) or that Honda was upset over Granholm's dealings with Toyota (probably also true), but the simple fact is that we weren't giving Honda what they want... Tax breaks and an economic plan suitable to their low-cost underpinnings. Fact is, Honda, Nissan, Toyota, and even Hyundai or BMW could pretty much waltz around the "rust belt" states and say they are planning to open a new factory. Whatever state can give them the lowest bid goes the spoils, or so it seems.
Lower taxes mean lower costs for the automakers, and even if that may mean a less-qualified workforce or even a greater risk for disasters, they will go for it. And why not, its all about the bottom line, right? Oh yeah, thats what American automakers have been accused of for decades...
So beyond taxes, why else do the Japanese run south when it comes to building cars? One big deal is that they are as far away from the UAW as possible, as they are arguably one of the greatest achievements of Detroit, and have also been its downfall. Defending poor quality workers who don't get the job done, demanding unrealistic wages and benefits, and otherwise doing immoral things (not accepting on-duty Military vehicles on UAW-owned property if they are foreign, big hubbub about it last year in Detroit).
...But of course, it is all The Big Three's fault. Sure, they deserve their own fair share of the blame. For some reason it has taken all of them this long to realize that it isn't 1950 anymore, and that policies need to change. Wow! Now they listen to the public, plan ahead, and actually have goals in mind no matter what the cost. Hmmm... Sounds like they are thinking like a modern automotive brand!
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How are we going to fix it? Well the answer is that progress is already underway at GM and Ford. With the Fusion beating-out the Accord and Camry for top-quality marks this year is a HUGE win for American automobiles, and if the rumors and leaked photos mean anything about the new E2-based Malibu, GM is due for its own good fortunes as well.
Added to that, American automakers have seen the light and have realized that it is more practical to align worldwide brands and build the same cars across the planet instead of a few select ones in different places. It lowers production costs, increases efficiency, and therefore should also increase quality and production standards.
However with Chrysler on its last leg, the good days could be over if the next-gen LY models and other new models don't fly. They are still making the mistakes that they should have fixed years and years ago, and basically it comes down too poor management in the wake of the exit of Dr. Z.
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One thing that will help will indeed be the press covering more American models with a fair view of the car to begin with. When you still have The New York Times writing horribly anti-GM and anti-Ford articles every-other-day, encouraging us all to buy Prius "S-boxes," you aren't going to get anywhere in the market. The public needs to see the American cars compared fairly between the Japanese models, and unfortunately it doesn't always happen. The Fusion and Aura have had their own shots and have only come up slightly short of the competition (mainly the Accord). Its hard to beat arguably the best sedan in the American market, but GM and Ford are closer than they have ever been before...
At least thats a start!
What exactly does the Big Three hope to accomplish by bringing issues like exchange rates and their impact on profitability to the President? Are they hoping for some kind of Plaza Accord remix?
