Saving the US Auto Industry

[tw]

Originally Posted by classicman

This alternative seems to be the most viable. ... Bust it up and let the strong survive.

GM intentionally restructured itself to make any breakup as difficult as possible. For example, all engineering was removed from the divisions. Many assembly plants were reconstituted into General Motors Assembly Division so that a breakup would be most difficult. It was done at the highest levels of GM management. Statements from many now retired GM executives.

How does one sell off Pontiac when their cars are made on the same assembly lines as Buicks and Chevys? Just one example.

Meanwhile a breakup does nothing to solve the problem. For example, too many platforms. VW does all models with only 3 platforms. Last I saw, GM had at least 13 platforms - I suspect that number is higher. GM even makes three different intermediate sized cars that don't share even one part. That is one problem.

Any solution (ie breakup) must solve these problems. Problems include too many platforms, built in factories that still are not flex type, using obsolete technologies (as some technologies were obsolete even 20 years ago), without management that comes from where the work gets done, and too many layers of management, in an industry that already has enough other companies that make superior products.

A breakup would not solve even one of those problems. GM wants to sell Hummer, Saturn, Pontiac, and Saab. Only Saab might sell. Nobody can make money on the other three. To sell them, GM would have to include guarantees (just like Mercedes did to sell Chrysler to Cerebus). GM would not provide guarantees to operations that would inevitably fail.

Best money comes from breaking down the factories and selling off the machines. GM is worth more in disassembled pieces than the entire company combined because it product designs are that inferior. For example, Telsa might be in the market for sections of a GM assembly line - to assemble their product in CA. It was one thing DeLorean desperately needed and could not get - used standard technology assembly line equipment.

Time to save Pontiac, Saturn, et al was back in 1991 when the spread sheets said GM was this bad. Instead, bean counters played money games for almost 20 years (and did not fix the problems). So economics takes revenge. Those divisions are worth only the equipment on factory floors. Since America must sell off things to pay of massive debts, that used equipment is best sold overseas.

Same occured in the mid and late 1970s.

[dar512]

Originally Posted by tw

How does one sell off Pontiac when their cars are made on the same assembly lines as Buicks and Chevys? Just one example.

You're behind the times, dub.

General Motors will phase out the Pontiac brand in 2010, said Fritz Henderson.

[xoxoxoBruce]

I wonder how much job loss really would occur under reorganization? And for how long, before they got their shit together under new management, and started rehiring again?

[Trilby]

You're obviously right, bruce. Some GM people did work. ok: 9 out of 10 gamed the system.

[xoxoxoBruce]

And if you had worked in the cafeteria, 9 out of 10 would have been hungry. Limited perspective.

[tw]

Originally Posted by Brianna

You're obviously right, bruce. Some GM people did work. ok: 9 out of 10 gamed the system.

Brianna is correct in that she only saw one part. I saw what happened when those same workers ended up in a GM plant where the workers had control of their jobs.

Because GM workers were considered so dumb, massive layers of management told them everything they could and could not do including going to the bathroom. GM assembly plants created the workers they wanted - as Brianna demonstrates and as William Edward Deming said why it happens.

Because GM workers had to take charge of their work - work like an independent contractor - the UAW and GM negotiated a special condition for this GM plant. If the assembly line worker did not like working without communist control, then he could apply for a transfer to any other GM plant.

Reality, only one person did not like having control of his work - took the free transfer. Once those employees with bad attitudes could be in control of their own job, then those employees were very productive.

[TheMercenary]

In GM's case alone they have to many parts. Like Griff says, let them fail, re-organize, and be sold off to those who have the money to keep them going. Problem is not all the bits are going to be bought off, esp some of the auto production parts. I am afraid IAW may have been part of the problem here. If you look at other plants that do not have IAW involvement they seem to be doing better financially.

[HungLikeJesus]

Originally Posted by TheMercenary

In GM's case alone they have to many parts. Like Griff says, let them fail, re-organize, and be sold off to those who have the money to keep them going. Problem is not all the bits are going to be bought off, esp some of the auto production parts. I am afraid IAW may have been part of the problem here. If you look at other plants that do not have IAW involvement they seem to be doing better financially.

IAW?

[TheMercenary]

Originally Posted by HungLikeJesus

IAW?

Yea, my mistake. UAW.

[sweetwater]

I'd rather see the money go to mass transportation, higher fuel efficiency development, bike paths and work-from-home practices, and while we're at it, to me. Or at least not more from me.

[xoxoxoBruce]

Originally Posted by sweetwater

I'd rather see the money go to mass transportation, higher fuel efficiency development, bike paths and work-from-home practices, and while we're at it, to me. Or at least not more from me.

Get out of my country, ya damn hippie.

[TheMercenary]

Originally Posted by xoxoxoBruce

Get out of my country, ya damn hippie.

Comrade, do not try to resist. Resistance is FUTILE!

[richlevy]

The Asian auto manufacturers have a secret weapon - Feng Shui. We simply can't blame the incompetent leadership of any US automaker or coddling by both parties in Congress that mistakenly thought that giving in to requests to not toughen pollution/mileage/safety regs would actually help them build better cars. No, that would require someone to actually take responsibility.

So I propose a feng shui solution, one that will cheaply solve the problem without assigning blame to any group.



Step 1: On the 4th Monday of any month, go to headquarters building of automaker needing assistance.




Step 2: At 1:34 PM local time, open windows in top two floors of the building starting from one of the four cardinal directions depending on season (East/Spring, South/Summer, West/Autumn, or North/Winter) in a counter-clockwise order.




Step 3: Throw any guy wearing a suit out of one of the open windows.

[TheMercenary]

I had no idea they owned a part of so many smaller companies: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling.

GMAC finance part alone is the biggest part of the ship under water.

[classicman]

Let it go and restructure - then they can also renegotiate with the unions for a more realistic compensation situation. I heard that the average employee gets something like $55 and hour plus some insane benefits. That just is not gonna work in a globally competitive market