WVBT Blog Landing Page
 

wood-cutter's Blog

by wood-cutter from farmington

Last Post 192 days, 13 hours Ago


Chapter 11 protection might be useful for service businesses like airlines or noncomplex manufacturers like steelmakers, but it's difficult to see how it could work for an automaker, where wide, deep, and intricate financial links run both upstream (e.g., suppliers) and downstream (e.g., dealers) from the core enterprise. If GM were to file for Chapter 11 protection, the consequences would likely be catastrophic for the highly interconnected U.S. auto industry, affecting the viability of companies that might also supply parts, components, and materials to the likes of Ford and Toyota.

And then there's this: Chapter 11 allows companies to reorganize and trade out of their difficulties. We've all flown on bankrupt airlines. But would you buy a car or truck from a bankrupt automaker?
MOTORTREND BLOG-

I dont know Im not convinced bankruptcy isnt an option. Why cant all parties that are reliant on the industry make certain sacrifices in the name of survival?The UAW,parts suppliers and dealers? It seems a better option than throwing money at the problem. Maybe we should see if thier "plan" has any "meat" to it and go from there.

 

The biggest obstacle I see them having to overcome if they file chapter11 is buyer confidence. Can you sell cars that people will rely on warranties if the company is technically bankrupt? I dont know but that is the ONLY aspect of bankruptcy that seems to be a real problem. Could the government participate in guarantees on warranties instead of handing over cash? Oldsmobile went down a few years back and buyer confidence was low because of the warranty factor so GM made a massive ad campaign to reassure owners that GM would back Oldsmobiles.Could the government instill such confidence?

Lets discuss......

24 Comments |  Add a Comment

Member Comments Total Comments: 24
Page 1 of 2
1
Last
Galsbury_Doughboy
Dec 3, 2008 | 2:35 PM

This is not a good time to take your auto in for repairs @ Ford. $800 and counting for minor repairs. On the second call back I was told the brakes need replacing. LOL Was done about 20k miles ago.

Screw um........... over paid drones.

mpvan read my blog
Dec 3, 2008 | 2:37 PM

They will get the money and then go bankrupt.

Gas can only go up.

People will buy Japanese and Korean, if any new cars at all.

U.S. automakers still have the same product that got them in their mess in the first place.

wood-cutter read my blog view my photos
Dec 3, 2008 | 3:05 PM

Doughboy: Im a mechanic and the mechanics at dealers are not UAW or overpaid. 20K miles on a set of pads can be normal depending on how YOU drive.I saw it all the time. Ask to see them because you dont want to ruin a rotor by not replacing pads when its time. You can thank the government for the life span of break pads.The "old days" when you could get a lot more miles out of pads they were made of asbestos(you know were this is going). the carcinogens in asbestos made then unsafe. Now the best tecnology is a carbon metallic composition which is noisier than asbestos and doesnt last as long. You can go ceramic but they are VERY expensive.

wood-cutter read my blog view my photos
Dec 3, 2008 | 3:08 PM

Mpvan: You imply,as many do,that the Big3 are broke because they built big SUVs. thats simply not true,they built them because thats what people wanted. Why else do you see so many on the road if they are so undesireable. the gas crunch hit...what 10 months ago? C'mon get real?

ProfPalmer read my blog
Dec 4, 2008 | 1:04 PM

I am for them going bankrupt--as you say it will cause them to re-organize and have to renegotiate their labor contracts...so then perhaps they won't be able to demand $70 per hour. At present, the labor unions will never negotiate away from auto workers earning that much. The CEOs should be fired as well...they are doing a bad job.
Also, if American car companies were making a quality product instead of an inferior one, they would not be in as big a mess. Years of inferior product lines make them a fair target in my opinion.
One more thing; Maybe this would work also--instead of auto makers cranking out a set number of autos, they should go to a type of "kiosk" manufacturing and only make what is specifically ordered by a person.
Either way, I'm against the bailout.

wood-cutter read my blog view my photos
Dec 4, 2008 | 1:27 PM

Americans car arent inferior,they just still suffer from years of a bad rep.They are equal to foriegn cars in quality.

Kiosk sales wont work-people will wnat test drives,will wnat to 'see' it in thier color and equiptment.Believe it or not cars are a bit of an impulse buy. Ive seen it time and again. A person may be "in the market" but wont pull the tirgger until they see the one they want.

mnaines read my blog view my photos
Dec 4, 2008 | 10:19 PM

wood-cutter, look at cars like the Hyundai Genesis, Hyundai Entourage, and Kia Sedona minivan...All of those vehicles are the best Hyundai and Kia have to offer, and both the Kia Sedona and its twin, the Hyundai Entourage, scored the highest possible crash safety rating of any minivan in the world. I have yet to see GM, Ford, and Crysler build ANY car that scores more than 4 stars in REAR crashworthiness and couple that with class-leading safety features as well as Hyundai's notorious value equasion. Until GM, Ford, and Crysler can match or beat Hyundai's value equasion, I say just let 'em suffer from their own mistakes.

mnaines read my blog view my photos
Dec 4, 2008 | 10:30 PM

In order for GM, Ford, and Crysler to compete with Hyundai's value equasion, GM would have to sell the Chevy Cobalt for less than $10,000 brand new; Ford would have to sell its Shelby GT500 for less than $45,000 brand new and Ford would have to revamp the GT500 to make well over 25mpg highway without raising the price; Both GM and Ford would have to make V8's like the one in the Genesis that punch out 375hp and 333lbs/ft at the crank through a 6-speed automatic transmission with manual shift feature and make the car go from 0-60 in 5.69 seconds and run the quarter mile in 14 flat and still churn out 28mpg highway in a car that weighs 3,800lbs and is made of high-tensile and ultra-high-tensile steel bonded together with the same type of adhesives used on the Space Shuttle's heat shield.

mnaines read my blog view my photos
Dec 4, 2008 | 10:36 PM

Hyundai's 4.6L Tau V8 is a dual-overhead-cam 4-valve-per-cylinder V8 with the most advanced technologies available to the industry, including continuously variable valve timing on both intake and exhaust valves, a variable intake system, chain-driven camshafts, twin exhausts with chrome tips, and selective dampeners to help reduce engine vibration and noise.

mnaines read my blog view my photos
Dec 4, 2008 | 10:39 PM

The V8's chevy and ford build are only two valves per cylinder and are the older OHV configuration...Not really designed for fuel economy...And their V8s lack the variable timing that helps improve fuel efficiency.

mnaines read my blog view my photos
Dec 4, 2008 | 10:46 PM

Hyundai's Tau V8 is a Gasoline Direct Injection engine, too, which makes it even more efficient. Top it off with the fact the engine can still churn out a lofty 368hp 325lbs/ft on regular gas (375hp 333lbs/ft is on premium) and the engine still manages 26mpg highway on regular unleaded, and then compare it to V8s made by the Big 3, and you see how far behind the Big 3 really are to the rest of the automakers.

mnaines read my blog view my photos
Dec 4, 2008 | 10:55 PM

The Genesis sells for less than $45,000 fully equipped. All those features, all that power, with the same luxury as Mercedes and BMW complete with a Lexicon 7.1 surround sound stereo system - as Hyundai put it during the Genesis' debut: "Ah, yes, the Genesis. A brand new luxury car as spacious as the Mercedes S-class, but priced like a C-class...By now you're probably expecting some crazy, big twist...Well, here it is: Hyundai - Think About It" The Genesis is a true luxury sport sedan...The power and performance to go head-to-head against a BMW 750i and Porsche Boxter in the 0-60 sprint and outrun both cars; the suspension and handling capabilities to out-handle both cars in the slalom and cornering tests; and the luxury features and quality of cars costing tens of thousands of dollars more.

mnaines read my blog view my photos
Dec 4, 2008 | 10:58 PM

Plus, the Genesis has two things that GM, Ford, and Crysler do not - The Genesis' entire electrical system is run on fiber optic cables and the Genesis has adaptive headlights that turn with the steering wheel.

mnaines read my blog view my photos
Dec 4, 2008 | 10:59 PM

What that means is this: The entire electrical system is by-wire, and the response time is instantaneous - you punch the gas and just as quickly as you punch the gas, the engine revs up and you're gone. No lag time at all.

mnaines read my blog view my photos
Dec 4, 2008 | 11:00 PM

The only downside to the Genesis is it lacks the paddle-shifters that its competitors have.

mnaines read my blog view my photos
Dec 4, 2008 | 11:04 PM

The other real beauty about the Genesis is the braking power is unmatched - Against the BMW 550i and Mercedes E550 in a 70mph to 0 braking distance test, the Genesis scored a distance of 168 feet, while the beamer scored a distance of 179 feet and the Mercedes had a distance of 181 feet.

mnaines read my blog view my photos
Dec 4, 2008 | 11:06 PM

It is cars like the Genesis that GM, Ford, and Crysler need to start competing with. This is an open market society - You can't compete, you fail. No ands, ifs, or buts about it.

mnaines read my blog view my photos
Dec 4, 2008 | 11:10 PM

The turbocharged version of the Porsche Boxter performs equal to the Hyundai Genesis - not even a Dodge Charger can beat the Genesis' 14.00 second quarter mile run. Back in the early part of this decade, Dodge was smart when it built the Dodge Neon SRT-4 - a turbo sport compact that ran the quarter mile in 13.8 seconds and could still achieve 28mpg highway, and $1,000 was all you needed to run 500whp

wood-cutter read my blog view my photos
Dec 5, 2008 | 9:44 AM

Ok.............now back to our regularly scheduled programming!

JewwellsP read my blog view my photos
Dec 5, 2008 | 5:22 PM

WC I take it mnaines owns a Hyundai.. LOL

Guess sludge doesn't pop up un all of that does it?
How about the battery system in the Hybrids of Honda?
Outer body rust thru?

Page 1 of 2
1
Last


Write your comment below:




wood-cutter

wouldnt you like to know?

Member Since: 9/7/2008