US lite truck industry literally breaking down

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WhiteBlue
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US lite truck industry literally breaking down

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http://online.wsj.com/article/SB1213972 ... whats_news

Ford are announcing the next big cut in truck production in 2 months. Market value of big three falling like a stone and liquidity fears deepen. US auto sales plunge 30% on annual basis. big three expected to shrink and make losses for next ten quarters.

this really sounds like unmitigated desaster. has nobody ever heared of marketing over there. clearly a risk analysis would have shown some of this years before. the current oil price trend has been going on for 8 years now!!!
Last edited by WhiteBlue on 22 Jun 2008, 05:05, edited 1 time in total.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

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flynfrog
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Re: US truck industry literally breaking down

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To be honest in only makes me smile.

I see so many people driving a truck for the sake of driving a big truck.
Now they cant afford fuel :lol: so they cry to the government to lower fuel costs. To be honest the fuel costs don't bother me much. I chose to drive a somewhat fuel efficient car I chose to live close to work. The big three have needed a wake up call for a while besides the Unions driving them into the ground they have dug their own grave. I imagine it will bring about a rebirth of the American auto industry to a much leaner and more efficient machine.

Conceptual
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Re: US truck industry literally breaking down

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flynfrog wrote:To be honest in only makes me smile.

I see so many people driving a truck for the sake of driving a big truck.
Now they cant afford fuel :lol: so they cry to the government to lower fuel costs. To be honest the fuel costs don't bother me much. I chose to drive a somewhat fuel efficient car I chose to live close to work. The big three have needed a wake up call for a while besides the Unions driving them into the ground they have dug their own grave. I imagine it will bring about a rebirth of the American auto industry to a much leaner and more efficient machine.

Maybe if they ever get around to expiditing the illegal immigrants to a legal status with the notation that said immigrants MAY IF THEY PERSONALLY CHOOSE work for 20% of the Federal Minimum Wage.

I imagine that costs would go WAY DOWN if your workforce was non-union, and is able to work for $1.50/hr. Actually, that would not only increase exports in this country and solve the illegal alien issue, but it would re-value our dollar as well as increase income tax revenue while lessening the drain on our welfare system.

But people always want to cry and say that I am making them sub-human by giving them the option to work below minimum wage because they always seem to take it that I want them restricted to that wage. I say let them work for less, and then as they develop skill/education, then they can find better paying work.

The Federal minimun wage has acted in concert with our Fiat money system and our "special interest" regulators (environment, energy, food, pharmacuticals) to destroy our economy as well as increase our national debt, not to mention create a synthetic oil bubble due to us not being allowed to drill for oil or build new refineries.

I think it is time to re-write the book, and get all of these law enforced markets out of our system. Only then could we be a viable economic power again.

Sorry for the OT rant, but FlynFrog sparked me with talks of the Unions digging the Auto Manufacturers graves. In some ways he is right, but there is a cure at our fingertips. Unfortunately, there isn't any money in it for the people that are currently making money the way it is, so it will take a revolution to change it.

Chris

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checkered
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Re: US truck industry literally breaking down

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I'd say undocumented

immigrants (I object to persons being labelled "illegal" as entities, that language reflects a political ideology more than the actual status of a person under national law - and is quite possibly pejorative to the degree of contravening inalienable human rights) "choose", if you wish, to work for a below "minimum wage" pittance as it is. The existence of those deplorable working conditions isn't their fault, but the ability and conscious choice of their employers to exploit them in this fashion. And the latent tolerance of this by the society at large. Thus, what you are suggesting is hardly a "revolution", but labelling the status quo by another name.

Contrary to your assertion, car (and any other comparable) industry has little to offer for an uneducated workforce, however little it is made to work for. Why you take it upon yourself to make general statements of the education levels, potential and general employability of undocumented immigrants is another matter. Skill relevance is hardly a problem that affects undocumented immigrants alone, so any solution to that will be inefficient if any major demographic is excluded from those by irrelevancies. As to "welfare", the inability of undocumented immigrants to "drain" (a.k.a. access) it is one of the major reasons why problems persist. Basically you're advocating an increase in income and wealth inequality as a solution to the (perceived) problems of the US economy - well, it's exactly the decades-long trend that brought it to this condition, so that doesn't quite constitute a "revolution" either, now does it?
Conceptual wrote:But people always want to cry and say that I am making them sub-human by giving them the option to work below minimum wage because they always seem to take it that I want them restricted to that wage.
That's a particularly callous remark to make, after a board member specifically referred to his experiences and feelings in these terms in a previous conversation. I'm left to wonder what possibly could get one to revisit an issue in this manner on such a personal level, to expend so much effort just to get around to it? I won't believe for a second that this came up as a matter of chance.

It's also a bit tragicomic to rail against "special interests" while advocating drilling what's left of US "indigenous" oil no matter what the cost. More curious still, as I remember you slating other forum members for not supporting so called "alternative" energy sources. As to the refining capacity, it's mainly been the choice of relevant companies not to invest in this infrastructure, perhaps it would've annoyingly eaten into quarterly profits during the heyday of financing cheap oil imports with selling dollars to other economies the World over. All the more convenient for speculators atm.

We all have "special interests", undocumented immigrants included, so unless you're one of them, don't pretend to speak for them. Immigrants have trusted their fate to the US throughout the history; the difference to people born within is akin to the difference between a biological and an adopted child. Why should you treat them different in issues unrelated to their origin? Why would you want to?

Politics and especially legislation is mostly reactive by nature, by looking for anything more pre-emptive you're looking to accommodate something other than democracy or, ahem, freedom. There's a process of self-regulation that is tentatively adopted in a national framework, necessity driving associated parties to codify rules of conduct, this is the norm. If half the electorate and its representatives think that public governance and public spending is corrupt and inefficient by default, then you shouldn't be surprised if that vision soon becomes a reality. Living up to promises gets you re-elected, after all. You make your bed and sleep in it. Or perhaps you'd rather have someone tuck you in at a buck'n'fifty an hour, sir?

As to WhiteBlue's original assertions, car production is hardly very "national" anymore. Yes, there's a strategic interest of sorts, but it's really entirely in companies' powers to react. Why they haven't drawn some fairly obvious conclusions is anyone's guess. I never like to see a crisis of any sort and hope people start to pay more attention to what is happening - understanding the problem is half the solution.
"In theory there's no difference between theory and practice. In practice, there is." - Yogi Berra

bhall
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Re: US lite truck industry literally breaking down

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Exploiting people, in this case undocumented immigrants, for economic gain is not a new idea. Sure it might work, but at some point you have to decide just how decent you are as a human being.

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WhiteBlue
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Re: US truck industry literally breaking down

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checkered wrote:...As to WhiteBlue's original assertions, car production is hardly very "national" anymore. Yes, there's a strategic interest of sorts, but it's really entirely in companies' powers to react. Why they haven't drawn some fairly obvious conclusions is anyone's guess. I never like to see a crisis of any sort and hope people start to pay more attention to what is happening - understanding the problem is half the solution.
Perhaps I'm a bit over sensitive because Germany has identified automotive industry as a strategic industry which has to be defended for our nation to prosper. One could jump to the conclusion that this would be essential to the US as well. Perhaps there are different factors which work out to different strategies in the USA. The thing that strikes me is the similarity and the difference.

Certainly the US is much more dependant of automobile use than Germany having much higher individual milage due to the lower population density and dispersed urban structures. Also Germany ran out of oil much earlier than the United States and has been longer dependant of imports. I always look at Austria and Germany to compare countries that do automotive or not. Austria's and Switzerland's economy relies on high tech, financial services and tourism and has no significant automotive industry. As a result they have massive taxation of automobiles to cope with the money drain on the national economy for buying foreign made cars.

The US has been the most interesting auto market of the word for a long time but US designed and manufactured cars suffered big losses in market share. This was briefly reversed when Americans turned to lite trucks and SUVs based on truck design structures. It looks like this episode is over now with cross overs being more effective products that US companies are not promoting. Asian and European manufacturers are the winners in that big market upheaval.

I do not think that using cheap labour is the key to success in automotive markets. I rather think that good marketing using scenario techniques is doing the trick. you have to have a plan B up your sleeve when something as obvious as the oil price hike happens. It looks like none of the auto biggies was uneffected by the big downturn of the market but at least the foreign brand strategies were more successfull in coping.

So what do I think that would have improved the thing for GM, Ford or Chrysler? I think that use taxpayers money is a crucial thing. Japan spends it mostly on technology research like batteries, fuel cells, engines, electrification and efficiency research. The US sinks a significant part of their budget in lost expenditure for Irak and other military expenditures that are not contributing to the success of the economy. Some of the money used to create vast burocracies like the homeland security and for policing a civil war in Irak would have better been spent to advance engineering technologies and in science and education. I do not want to look judgemental and the American people can decide for themselves what the want but looking at the vast resources of the United States is is mind boggling that the people would accept having most of their goods made in Asia and shipped across the Pacific at vast expense. It just seems to be not an efficient way to do it.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Carlos
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Re: US lite truck industry literally breaking down

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"But people always want to cry and say that I am making them sub-human by giving them the option to work below minimum wage because they always seem to take it that I want them restricted to that wage. I say let them work " Chris

Sounds like exploitation to me.

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Ray
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Re: US truck industry literally breaking down

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flynfrog wrote:To be honest in only makes me smile.

I see so many people driving a truck for the sake of driving a big truck.
Now they cant afford fuel :lol: so they cry to the government to lower fuel costs. To be honest the fuel costs don't bother me much.
What about high food prices? Would you laugh then because you choose to eat one thing over another? Should people who are taller, or more muscular than you pay for more because they are bigger and choose to eat more because they like to eat? That's a real asshole statement to make. Prick comments like that make me want to punch assholes like you in the face when they say "well I drive a fuel efficient car." So what? I like having a truck, you don't. So the fact I have a bigger vehicle means it's humorous to watch me getting --- over at a gas station?

Gas is not worth what they charge. The dollar is falling because our politicians are screwing this country every day. It has nothing to do with immigrants, it has to do with greed. The falling sales of big vehicles is a knee jerk reaction to the prices of fuel. Speculators and the falling value of the dollar are to blame. I don't give a --- that Europeans have been paying more than we have for years. Their fault for taking it in the rear. Your fault for willingly getting screwed.

It's sad when a mother of two, a friend of mine, can't afford a vehicle that gets decent mileage because she can't afford one and has a bigger vehicle because of her two kids, diapers and baby food prices are through the roof, and her whole family has to suffer because some asswipe is pissing this country down the drain. She can't afford gas at $4 a gallon for long, she has to drive them to a baby sitter, who she can barely afford, she has to drive about 25 miles to work one way to get to work, and work ten hours a day just to make ends meet. That's WITH a working husband. All the while --- crackheads and drug addicts get handouts every day in big cities. --- those people, hard working families suffer everyday working their collective fingers to the bone, and those complete wastes of human life get a free ride. People like you make me sick, gas prices don't just affect people with trucks or SUV's, they effect everybody. And the next person that I see that laughs at someone getting screwed in gas prices is getting a trip to the --- hospital. Laughing about this --- is just as bad as watching fat cat oil men and oil speculators gouging us and being greedy.

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Ray
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Re: US truck industry literally breaking down

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Conceptual wrote: Maybe if they ever get around to expiditing the illegal immigrants to a legal status with the notation that said immigrants MAY IF THEY PERSONALLY CHOOSE work for 20% of the Federal Minimum Wage.

I imagine that costs would go WAY DOWN if your workforce was non-union, and is able to work for $1.50/hr. Actually, that would not only increase exports in this country and solve the illegal alien issue, but it would re-value our dollar as well as increase income tax revenue while lessening the drain on our welfare system.

But people always want to cry and say that I am making them sub-human by giving them the option to work below minimum wage because they always seem to take it that I want them restricted to that wage. I say let them work for less, and then as they develop skill/education, then they can find better paying work.

The Federal minimun wage has acted in concert with our Fiat money system and our "special interest" regulators (environment, energy, food, pharmacuticals) to destroy our economy as well as increase our national debt, not to mention create a synthetic oil bubble due to us not being allowed to drill for oil or build new refineries.

I think it is time to re-write the book, and get all of these law enforced markets out of our system. Only then could we be a viable economic power again.

Sorry for the OT rant, but FlynFrog sparked me with talks of the Unions digging the Auto Manufacturers graves. In some ways he is right, but there is a cure at our fingertips. Unfortunately, there isn't any money in it for the people that are currently making money the way it is, so it will take a revolution to change it.

Chris
Leave your pro-slavery bullshit to another website. Yeah they can choose to work for a dollar an hour,but how are they supposed to survive?!?!?!

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WhiteBlue
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Re: US truck industry literally breaking down

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Ray wrote:.. That's a real asshole statement to make. Prick comments like that make me want to punch assholes like you in the face when they say "well I drive a fuel efficient car." ...
[-X
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Gecko
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Re: US truck industry literally breaking down

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Ray wrote:I like having a truck, you don't. So the fact I have a bigger vehicle means it's humorous to watch me getting --- over at a gas station?
Now that you mention it, yes, I guess it is ;).

The problem with your food analogy is that the choice of vehicle is precisely that, a choice. Having higher food requirements due to your genes is not a choice. I do agree that the food price problem is a much, much more serious world concern than fuel prices even if the two are related. It's just that the fuel prices seem to affect the western person more these days and therefore it's talked about more, to the extent that more expensive food is seen in some quarter as a fair trade off for getting rid of dependence on oil via biofuels, which drive food prices up.

donskar
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Re: US lite truck industry literally breaking down

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For those of you who (accurately) pointed out that US auto makers should have foreseen the oil crisis and turned away from big trucks, remember that both Toyota and Nissan recently invested many millions of dollars in new plants to build big trucks and vey big SUVs.
Enzo Ferrari was a great man. But he was not a good man. -- Phil Hill

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flynfrog
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Re: US lite truck industry literally breaking down

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donskar wrote:For those of you who (accurately) pointed out that US auto makers should have foreseen the oil crisis and turned away from big trucks, remember that both Toyota and Nissan recently invested many millions of dollars in new plants to build big trucks and vey big SUVs.
If I remeber right a few years ago Ford sold more F150s in Texas than Nissan sold trucks in a year. I seem to remember a news story along those lines

donskar
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Re: US lite truck industry literally breaking down

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Yes, flynfrog, Texas is truck country. The F150 has been the best selling vehicle in the US for a long time, just recently beaten out by Toyota Camry and Corolla.

Little known fact: the only pickup built in the USA is the Toyota Tundra (built in Texas, Indiana, Kentucky and Alabama).
Enzo Ferrari was a great man. But he was not a good man. -- Phil Hill

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flynfrog
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Re: US lite truck industry literally breaking down

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donskar wrote:Yes, flynfrog, Texas is truck country. The F150 has been the best selling vehicle in the US for a long time, just recently beaten out by Toyota Camry and Corolla.

Little known fact: the only pickup built in the USA is the Toyota Tundra (built in Texas, Indiana, Kentucky and Alabama).
I knew that.

I tired to explain this to some one at the Daytona 500 who was ranting about Toyota being in nascar I gave up :D