Saving the US Auto Industry

[tw]

Originally Posted by ZenGum

You guys have just cancelled the importation of Aussie built Holden utes

Appreciate how important these changes are. For example, with contempt for free markets, George Jr said Chrysler was too big to fail; did anything necessary to protect cancer in America. Well, Obama has finally started fixing America by shaking Wall Street to the core. Telling Wall Street that if they continue to support economic perversion, then bankruptcy is one punishment.

Selling off America is necessary to pay for George Jr economic stimulus plans. Fiat will get Chrysler for peanuts. Cerebus Capital (Nardelli and friends) will be wiped out. Daimler will pay $1billion to Chrysler's pension funds. And America will sell off the remains to Fiat.

What will Fiat bring to save Chrysler? How did the French save Nissan? Same example used by Carlos Ghosen of Renault to save Nissan will probably be used by Sergio Marchionne to save Chrysler. How Marchionne first did the same thing in Fiat:

The single most important thing was to dismantle the organisation structure in Fiat. We tore it apart in 60 days, removing large numbers of leaders who had been there a long time and who represented an operating style that lay outside any proper understanding of market dynamics.

In short, he remove the reason for 85% of Fiat's problems.

Same concept were implemented by Iacocca in Chrysler and Petersen in Ford. Ford reduced 48 layers of management until only 5 remained. Same problem exists in Chrysler. Obama was shocked to learn that Chrysler had 10 times more management just in public communications compared to Fiat. A problem routinely found when management comes from business schools. Where image is more important than the product. So much management means a company in denial, innovation cannot happen, and unions get blamed. All symptoms in both Chrysler and GM.

Ghosen had to eliminate the same 'blame the employees' attitude - stop massive corporate infighting - before Nissan could be rescued. But management changes alone will not solve Chrysler. The bottom line: Chrysler products, like their factories, still suck.

Fiat under Marchionne had previously worked with GM to develop a new engine technology called (if I remember) multiple air porting. GM management suddenly backed out claiming the technology was too complex. But GM engineers privately said they were both shocked and impressed at the technical knowledge in Fiat. End result was that GM had to pay Fiat $2billion to end their alliance (yes GM's Wagoner was that stupid).

Rumors suggest that Fiat will soon introduce this revolutionary engine this year. Fiat would market these innovations through their newly acquired dealer network - which is Chrysler’s biggest asset. If this new engine technology is as innovative as the CVCC was to Honda (a Ford innovation stifled by Henry Ford for almost 20 years) or if as innovative as the 70 Hp per liter engine was to most all foreign automakers (a GM innovation stifled for 17 years), then Chrysler may be saved. A solution that addresses the product and that eliminates a reason for 85% of Chrysler's problems.

Of course, most Chrysler manufacturing is in Canada.

Marchionne has residual problems. He is still working on many Fiat problems. For example, like GM, Fiat had 19 platforms. That ridiculous number will only be down to six in 2012. Fiat still has many internal problems. Can Marchionne also implement massive management changes in both American and Canada?

Rescuing Chrysler will be a legendary solution that, of course, requires management that understands how the work gets done.

GM needs solutions just as radical. No import vehicle was going to save GM. Would a Ute save Pontiac? Of course not. Wagoner had to also be removed because solutions this radical are not possible under current GM management. The need for change this radical has been obvious even a decade ago – when the reader ignored propaganda and goes for the facts with a Great White attitude.

Clinton tried to save them in the 1990s when the problems were glaringly obvious. But an extremist agenda was to eliminate anything that represented or was started by Clinton. All this could have been averted. Will government mandated change be severe enough - or too little too late?

Yes, most people have little grasp of what is required to save these auto companies. Instead some even waste time with silly nonsense even about too much government in business. So many people remain in denial how bad both GM and Chrysler really are - financially, management wise, and products.

[sugarpop]

Originally Posted by tw

Appreciate how important these changes are. For example, with contempt for free markets, George Jr said Chrysler was too big to fail; did anything necessary to protect cancer in America. Well, Obama has finally started fixing America by shaking Wall Street to the core. Telling Wall Street that if they continue to support economic perversion, then bankruptcy is one punishment...

Too bad he isn't using the same kind of tactics with Wall Street and the banks. *heavy sigh*


Does anyone know if there are any crinimal investigations going on into the people/institutions that caused the economic collapse?

[classicman]

DETROIT (AP) -- Chrysler LLC plans to fire up to 800 of its 3,200 dealers on Thursday, a lawyer seeking to represent the dealers said on a conference call.
The lawyer, Stephen Lerner, who heads the bankruptcy and restructuring practice of the law firm Squire Sanders, told dealers on the Tuesday call that the automaker plans to reject at least 800 franchise agreements, according to a dealer who listened to the call.
Chrysler will file a list of dealers it wants to retain with the U.S. bankruptcy court, said the dealer, who asked not to be identified because the call was confidential.
A Chrysler spokeswoman said Tuesday that the automaker is working to reduce the number of dealerships along with other restructuring actions. Spokeswoman Kathy Graham said the 800 number was just speculation.

Too little way too late.