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Tom_Sussi's Blog

by Tom_Sussi from Lake Mary, FL

Last Post 4 days, 6 hours Ago


If you pay any attention to the stock market, you can't help but wonder if Ford and General Motors will survive.

I'm serious. These U.S. auto giants are puttering along in a very volatile market. At last check, Ford's stock was worth somewhere around $4 a share, and GM around $12. 

Here's what I say. Today's market doesn't have the room to support all of these automakers, both foreign and domestic. To survive, some of these companies will have to merge, and that's what we're going to see.

And, when you think about it, do we really need all of these choices? Was the Pontiac Firebird that different from the Chevrolet Camaro? Was the Olds 98 that different from the Buick Lesabre? Dodge Durango vs Ford Expedition?

The market is flooded with too many cars and trucks. To survive, automakers need to streamline and focus on engery-efficient vehicles. Otherwise, companies like Ford and GM will crash.

Your turn.

 

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Member Comments Total Comments: 18
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Abunai read my blog view my photos
Aug 12, 2008 | 3:43 PM

To streamline the market we need to focus on energy-effcient vehicles? Says who? The enviromentalist who never worries about towing, hauling, or need for space?

It is true that there is a plefera of vehicles, the company that can put one to market the CHEAPEST and pass that savings onto the customer wins!

GM and FORD are now having to lay in the bed that they made with auto industry unions. More revenue goes into pension than active worker pay. What you have is a micro example of a national system also in the very same trouble. Not as many people paying into a system that slowly has more people taking from a system than giving. (Social Security)

oldvamp read my blog view my photos
Aug 12, 2008 | 3:44 PM

Hooray for the UAW. They did it. They managed to bring these auto manufactorers to their knees and possibly out of business. Look at the up side here, these American made cars will be worth a lot of money in say 40 or 50 years. That is if you park one in a garage and not use it for that long.

Truthguys read my blog view my photos
Aug 12, 2008 | 4:28 PM

They never listened to the consumer and could have saved themselves. The Liberal Unions and the Moron thinking at the top is the reason. I have no sympathy except for the workers but even they didnt fight back.

Unions supporting Obama.... you sure you want to hire inexperience.... your flint pals hired Stuck on Stupid for 40 years.

FlaNative read my blog view my photos
Aug 12, 2008 | 4:30 PM

Agree oldvamp...one word..UNIONS!! Expensive benefit packages for retirees, including medical, etc!! A guy sweeping the floor making $25 an hour.

The union goal is to ruin America...one company at a time...

Ericjhach read my blog view my photos
Aug 12, 2008 | 6:35 PM

Lower prices for the average consumer not enegry effcient vehicles. Those so called hybreds are so expensive normal people cant afford them.

swansong2 read my blog view my photos
Aug 12, 2008 | 6:44 PM

I was pricing NEW trucks today and was amazed.
32,000 for a stripped (not equipped) avalanche
29,000 for a medium packaged dodge ram
24,000 for a stripped silverado
Now can someone explain to me where they are screwing up? No need I saw it with my own eyes

Tom_Sussi read my blog view my photos
Aug 12, 2008 | 8:57 PM

The unions did not ruin automakers. That's absurd. In fact, the automakers broke down the unions years ago. They are paper lions.

oldvamp read my blog view my photos
Aug 13, 2008 | 9:27 AM

Tom, how can you say the unions did not ruin the American car manufactorers? They have insisted on outragous salaries for too many years. The pension plans are outragous and these are the reasons that drove up the prices of new cars. The craftmanship has about dissapeared and they ignored the trend that this country was heading. Ask anyone who worked under the UAW and retired, they will tell you that their pension is probably more than what you are earning on a yearly basis. (that is if they are honest with you)

Abunai read my blog view my photos
Aug 13, 2008 | 9:34 AM

Come on now Tom... of all people in the world of investigation of business... you're wearing your liberal bias on your sleeve again.

But OK lets go to the next level:
How much of the price of enviromental impact studies, insepections, etc. goes into the price of that car? While enviromental concerns are important, we ALL know its literally on the level of extortion now days.

From having to reconfigure air conditioning systems in vehicles for example to find out that the ozone layer is NOT having any issues to begin with!

We force safety standards into cars by federal law, but can't bring ourselves to federally mandate seat belts?

Forced ethanol and mixed fuel systems that burn faster, and eat through the gaskets of the engine?

Tom_Sussi read my blog view my photos
Aug 13, 2008 | 9:41 AM

Listen, I covered GM/UAW strikes for years in Flint, Michigan, so I know a little something about this topic.
They're both to blame.
Yes, the unions got to greedy and thought they were bigger than the automakers. They were wrong.
The automakers were greedy, too. They realized they could out-source, shut down plants and open up shop in places like Mexico. Where they didn't have to deal with unions and union wages.
Together, they damaged this industry.

Abunai read my blog view my photos
Aug 13, 2008 | 1:27 PM

We seem to have an ongoing glass wall when it comes to the issue of outsourcing. While labor is cheaper outside of the US, and unions almost non-existent, the "left" will NEVER talk about the elephant in the room... that being OVER regulation, Hyper enviromental protection and outright extortion of industry in America by the enviromental/global warming proponents. Our system is easy enough to understand.. industry will always seek production at cheaper level, instead of destroying American industry with enviromental policy for "the planet" we should have taken it worldwide! Kyoto was simply a tool to cripple western industry and give India and China a free pass, and now everyone is simply working over there. THAT to me is evidence of using climate for a national shakedown, but unable to take it past the waters edge.

Mind you we STILL can't get an equal debate on Global Warming.

All of the above is a larger picture of the failure of some industry in America, and until the "left" stops trying to squelch the truth of the matter, then don't expect business to put forth the effort either.
Had the auto industry been successful then the "left" would be going after them as they did tobbacco, microsoft, big drug, big oil, and now the new head on the block.. big speculator..

Tom_Sussi read my blog view my photos
Aug 13, 2008 | 2:10 PM

Abunai: I actually agree with most of what you posted in your last entry. Brother Abunai - you're finally coming along!

TavaresJim read my blog view my photos
Aug 14, 2008 | 2:11 PM

Labor & management both got greedy....and how can a US company compete with overseas manufactures paying sweat shop labor rates and no envior-regulations? We have lost our manufacturing base and our economy can't survive with just service jobs.

TavaresJim read my blog view my photos
Aug 14, 2008 | 2:17 PM

In defense of the Big 3 they were just giving the American consumer what they wanted and got caught with their pants down. Big trucks & SUVs fly off the lot when gas is $1.30 (as it was when Bush took office). It takes 2-3 years to bring a car from concept to showroom. If they would have known what was going to happen with oil in the last 18 months you can bet your butt they wouldn't have been busy building Hummers & Excursions!!! Not that it really matters though, not many people have money to buy a new vehicle now anyways.

oldvamp read my blog view my photos
Aug 14, 2008 | 2:57 PM

Tavares, let me understand what you are saying. Correct me if I am wrong. You are saying that the big 3 are going under because of president Bush? The fact that the UAW demanded all the employees be paid three or four times their worth has nothing to do with the increase in prices, right? Also the fact that they cut corners in every conceivable place by using inferior material had nothing to do with it, right? Yeah, I guess you're right, blame it all on Mr. Bush. Meanwhile, all the thousands of former UAW workers are retired and earning more in a retirement pension than most people earn by working 40 hours a week. Coulda fooled me.

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Tom_Sussi

Tom grew up in Flint, Michigan and has worked in radio, newspaper and television. A graduate of Michigan State University; Tom has worked in Lansing, Flint, Detroit, Pittsburgh and Cincinnati. In his television career, he’s won numerous awards including an Emmy and Reporter of the Year honors. At WOFL, Tom is the Consumer Investigator. Simply put, Tom has headed south to do what he does best and what he loves most. He’s here to stick up for the little guy. Expect to see Tom hold rip-off artists accountable; help solve your consumer problems; and investigate government spending. So, do you need help? Send Tom an email if you have a question or a problem! His address is askfox@foxwofl.com.

Member Since: 2/19/2007