Why American Companies in the Automobile Arena are Losing Money?

  • Thread starter Thread starter jrubio
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The latest JD Powers results of problems per 100 vehicles has Mercury, Buick and Cadillac ranked above Toyota. Only Lexus ranked higher. Land Rover finished last.
 
OK, so what's your point? How are we doing next to all of the Spanish carmakers?

Dear Randy. Good Question.

In my oppinion the Cost is the Secret, and the name is China 1 Dollar per hour, 60 hours a week (Like IPOD in China)

I forsee an invasion of China Cars in Europe and America, Take care with Brilliance Auto (China)......

In Spain, which was a very important car-makers based on foreign technology, except SEAT (A nostagic Spanish factory in Gereral Franco Period, Every family had a SEAT, See bellow the photo). SEAT was bought by Volkswagen (So no Spanish cars now available).In Spain there ware many factories: GM, FORD, Renault, Delphi, Visteon, Volkswagen...

Volswagen also adquired Skoda and they, I think, decided to delete SEAT and introduce Skoda in Spain, something similar in Europe with Daewo (Corea GM joint venture) and Chevrolet. GM deleted the brand Daewo and introduced in Europe two years ago Chevrolet (But I think the Cars are the Daewo ones), may be the name DAEWO based on Corean does not sound well in Europe to compete with BMW, SAAP, Mercedes, Renault, Fiat, Ferrary, Volvo...

The brand Chevrolet sounds important in Europe and strong.

These factories came in the 70s when Spain was poor, so far nowadays..
and the current situation is that these companies are moving the new production rates to Poland (3 times less of cost of Spain and within Europe, you know the Euro is secure and no borders, near to Amstendard, a very important logistic point and next to the main Customer, Germany), therefore the Automobile industry in Spain is dying.

Delphi Puerto Real (Cadiz) is expecting the shut down, nobody knows if other company will buy them, may be the brilliant GKN, TRW???? Visteon El Puerto Cádiz will close too???

I Think the best strategy and it could be very hard to the american companies to compete with Japan & European ones, is to quickly tranfer their productions (No design Centers) to: Poland, China, India and SouthAfrica and improve seriously the Quality.

GM and Ford created Delphi and Visteon to reduce labor costs, but at what price, Delphi is in bankrupcy....

One point the BMW sedan is made in Brilliance Auto (China).

https://www.brillianceauto.com/


SEAT: :biglaugh: :biglaugh:

The 1950 's

600 (1957)
It was founded in the year 1950 as a subsidiary of Fiat, with an important share owned by the Spanish Government under the dictatorship of Francisco Franco.

The acronym "SEAT" meant Sociedad Española de Automóviles de Turismo (Spanish Corporation of Private Cars).

Initially, SEAT manufactured rebadged Fiat models which differed very little visually from the products of the Italian parent. The SEAT Panda (later restyled as Marbella) for example was based on the Fiat Panda. The SEAT 600 (based on Fiat 600) was the first car for many Spanish families, and became a symbol of the Spanish Miracle.

https://www.histomobile.com/histomob/internet/66/histo02.htm

Kind regards from the Spanish Industry Departament. a half year since I left the Automobile sector.


:bigwave: :bigwave: :lmao: :lmao: :lmao:
 

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Hello,

I think that the problems of the american car industry is nearly the same like in Europe , in my case especially in Germany. For a long time we felt safe in our small world of carmanufacturing. At the entertainment industry the pricefight was so extreme that foreign producers have won the full place with their agressive prices. And because the price is nice the customers decided to buy the cheapest.
And the same is happening now with some years delay in the car-manufacturing-scene.
The manufacturers has to react immediately so they can survive, but like in the former oppinions it was said that the unions are too strong. I don't think so, because a main interesting of an employee is to have security. To react in difficult times ist the backside of the medaillon for the unions.
And if the pricefight will enter the next round and the wages will be reduced, what will it bring ? Who can live from 2 $ per hour ( this is the rounded wage of a chinese worker in the line )?
The way of success ist to be different and like it was shown best in class at JD Power. The customer is the key to create an image which is unique.

At our company I mean that the points are put and the projection is possible.

Kind regards from the german Automobile Sector

PS: please excuse my english, it slept for a long time :)
 
A lot of the car companies have placed bets on the remakes based on past designs and the theory that money can be made selling acessories for them. A new-remake Camaro is supposed to be out. GM had said that this market was not profitable. However, I do not think many went over well. And look at the P/T Cruiser when they brought it here they only had a 4 banger while the one produced for sale in Mexico had a six. One of the complaints when it first came out (no power), but it was hard to find them for about 9 mos and many dealers were selling at 5-10,000 above sticker and getting it. We looked at one and i found a problem with it, the local dealership called Chrysler and engineering basically said that is the way it is. Another big problem is financing by the Big 3. especially when 0% was offered for 3 and 5 years. We are in that range of return now!
 
Hello,

I think that the problems of the american car industry is nearly the same like in Europe , in my case especially in Germany. For a long time we felt safe in our small world of carmanufacturing. At the entertainment industry the pricefight was so extreme that foreign producers have won the full place with their agressive prices. And because the price is nice the customers decided to buy the cheapest.
And the same is happening now with some years delay in the car-manufacturing-scene.
The manufacturers has to react immediately so they can survive, but like in the former oppinions it was said that the unions are too strong. I don't think so, because a main interesting of an employee is to have security. To react in difficult times ist the backside of the medaillon for the unions.
And if the pricefight will enter the next round and the wages will be reduced, what will it bring ? Who can live from 2 $ per hour ( this is the rounded wage of a chinese worker in the line )?
The way of success ist to be different and like it was shown best in class at JD Power. The customer is the key to create an image which is unique.

At our company I mean that the points are put and the projection is possible.

Kind regards from the german Automobile Sector

PS: please excuse my english, it slept for a long time :)


Mike, you make some interesting observations. But it is not just price. Most of the vehicles that the asian manufacturers sell in the USA, are not the cheapest. Many are very expensive. They avoid the Big 3 USA customers, and the customers must ask the people who left, why they left. It is not just quality, because their products are pretty good. They must ask the Voice of the Customer...
 
David,
Your right on the money! 60k isn't alot of money unless your whole life you didn't make that in one year or maybe in even in two years. The days of getting raise after raise went out in the 70's. It's time to do five jobs at once, get paid a quarter of what one job paid, and smile..............
 
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