<VV> Selling Cheap etc

[James P. Rice]

All:  I'm sorry if the following comments are redundant.  I've been off
playing with our grand kids, and am therefore past due on a number of
things.

I have no reason to believe the "be aware that most, if not all auto
manufacturing overseas is subsidized by their government" is a true
statement.  "All" is a very big number of car companies and nations.
Anybody have documentation for this, as this "fact" has never been mentioned
in any of the auto magazines I've read, including those specifically for the
auto industries.

According to a article in Ward's Auto world a few years ago, the Detroit
Three have higher manufacturing/assembly hours per car, higher hourly labor
cost and higher benefits cost than any Japanese maker, even when cars are
largely made in this country.  So "That is how they are able to sell so
cheap" isn't true.  It is called "pricing yourself out of the market".  I've
read GM is selling the Sololist for $10k less that it cost.  Why!?  Because
they could sell it at all otherwise.

Now I suppose you could argue socialist countries subsidies their auto
industry with universal health care, but it is a stretch, since they thus
"subsidies" all their citizens.  To me, it is simply a question of where
does the money come from, the price of the car or the taxes paid for the
healthcare.

Some have blamed the Detroit Three for all the problems they face.  Not
fair.  As a retired employee of a multi-national company, who started in the
UAW and retired in low management ranks, management has never been and is
not totally responsible for labor relationship turmoil.  The leadership and
members of the UAW need a reality check and a lesson in business management
and general kindness and stop being the free enterprise equivalent of
kamikaze pilots.  The company I retire from busted their butts trying to get
the UAW on board about quality and hours per unit, and got nowhere.  Then
the UAW, in a low demand cycle, went out on strike twice for total of about
3 years during a 5 year time period.  Let you know how skilled and high tech
the factory jobs were, the company was able to staff the factories with
generally inexperience office workers, and improve both quality and
production numbers.  Now I ask you, who shot whom in the foot?

Why are there about 15k fewer UAW jobs in the area than 25 years ago?  Part
of it is automation.  When I hired into the factory in 1974, it took 6
people on 6 machines to make the component our line was responsible for.
When I got drug back (yelling and screaming on the inside) to the same line
during the first strike in '90, it took one CNC machine and one operator to
perform the same work.  But part of the job loss in the area is due to the
products and the jobs being moved to a less hostile work environments.

In late '94 we went to the local Chevy dealer, bought a used Geo Storm (an
Isuzu made in Canada) and ordered a Cavalier.  60 days later, no Cavalier.
When my wife called the dealership, she got the runaround from the sales
manager.  He told her to call the Chevy 1-800 number again and ask for the
build date, and to please call him back with the info.  My wife does not get
POed easily or often.  (Proof:  we've been married 41 years.)  She called me
at work, simply furious. As livid as I've ever seen her.  Later that
evening, the first Thursday of January, 1995, we went to the local Dodge
dealer and bought a '95 Avenger off the show room floor.  Drove it home. The
next day I had the great joy of calling the sales manager back, who
remembered my wife's call, and cancelled the Cavalier order.  All to say
this: The Avenger was a great car, more  bullet proof than anything we had
owned up to that point, all of which were made in Michigan.  I later learned
the Avenger was a car styled by Dodge (actually DiamondStar then),
manufactured 40 miles east of us in Bloomington IL, with a Mitsubishi
chassis and an engine from Mazda, which was and is owned by Ford.  We bought
American!

The vehicle we bought in June of '06 was a Toyota RAV4, mostly because no
Detroit Three vehicle had the combination of dealer location, interior
space, mileage, price and back door side impact airbags we wanted for my
wife's "Nana-mobile."  There wasn't a single American make/branded vehicle
with the back door side-impact airbags which also met the other criteria.
Seems the Detroit Three were/are at least one product cycle behind their
competition.  Did I feel bad.  A little, but not for long.  And notice
"cost" was not a deciding factor.....well, it was, but only in the sense of
how much were we willing to spend out the door for any new vehicle.  All the
vehicles we looked at were in the same price range, and thus not an issue
over riding the other things.

I found it difficult to be totally "Buy American" at home when you've earned
you living in a multi-national company that exports over have their US
production.  I mean, I want them to Buy American!

Historically Yours,
                   James Rice

PS:  I remain POed at Toyota for their treatment of Dan Gurney's
All-American Racers Indy car program back in the mid to late 90's.  My wife
said, "How does this impact me?"  It was her money afterall.

****************************************


Message: 2
Date: Mon, 10 Nov 2008 10:45:07 -0800 (PST)
From: Richard/Gail Spiess <spiessdg at yahoo.com>

It is my understanding that while many Japanese cars are now assembled in
the U.S., approximately 70% of the parts are shipped from Japan.  They are
not dioing us any favors, nor should we expect same.
As far as our government loaning money to the big(?) 3, be aware that most,
if not all auto manufacturing overseas is subsidized by their goverment.
That is how they are able to sell so cheap.

Dick
64 Spyder convertible