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 Will the big three survive?

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PostSubject: Will the big three survive?   Thu May 06, 2010 12:39 pm

Ford Plant

This is fascinating. If you watch, listen to the very last couple of sentences.

This is a short video of a new Ford plant in Brazil . One look at this and you will be able to understand why there will probably never be another assembly plant built in the USA .

It will also point out why more assembly plants will go offshore.

You won't doubt that Ford, GM, and Chrysler are destined to go under, after watching this video.

They will survive, but their assembly operations in the U.S. likely won't, whether we provide a bailout or not (listen closely at the end for the reason why).

Watch the video, then pass it on!

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PostSubject: Re: Will the big three survive?   Thu May 06, 2010 1:59 pm

I live in Southeast Michigan & spent my career in the automotive business as a Tier One supplier.
One thing that strikes me about your post is the topic: "Will the Big 3 survive?", I have to point out that the "Big 3" doesn't exist anymore. Chrysler is jointly owned by Fiat & Daimler Benz. GM is owned by you and I. And we're all aware that Ford had to bring in an aerospace executive to get them back in the game. The video might be a bit biased because it's a Ford production, but don't be misled the concept of "Supplier Integration" it gained favor here back in the early nineties and has been in existence here in the USA since then.
In my opinion the ax fell on the Big 3 when Ignacio Lopez (GM) began building his world wide supply base in the 90's. His actions were reprehensible and ultimately led to the downfall of the US based auto supply base. I'm pretty certain that after he left GM he was prosecuted for some of his activities and spent time in prison. Part of his strategy included asking the USA based supply base to quote assembly systems for the GM plants and when they designed it and provided a quote he would take the designs and send them to Japan, Italy, Brazil etc. for them to quote. The disadvantage for our suppliers was that they had spent up to say $200,000 just to do the design work and they didn't get paid for it, so when the off shore quotes came in they were naturally were lower by the $200,000. If you can believe this he actually demanded that the USA based suppliers HAD to build plants adjacent to GM's assembly plants. How many suppliers had the financing to accomplish this, very few I can tell you and those that didn't were left out in the cold to shrivel & die.
While this video touts Fords greatest assembly plant please remember that this plant was opened in 2002 and GM & Toyota had, at the same time, a little joint venture called "NUMMI" operating in California. It's versatility included the ability to build different brands of cars & different platforms.
I could go on forever about how the demise of the Big 3 occurred but I don't think anybody would be interested but, rest assured that at the end of the day WE are responsible for what has happened by buying cars from off shore companies. I do think that GM will survive in some form, probably not how we know them today. Chrysler is on life support & Ford probably won't make the cut either.
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PostSubject: Re: Will the big three survive?   Thu May 06, 2010 3:28 pm

Quote :
I could go on forever about how the demise of the Big 3 occurred but I don't think anybody would be interested

I disagree. I find that you tend to be a wealth of information. If you have time to post your view on where the Big 3 went wrong. I would be interested in hearing it.

I know it will be one mans opinion, but really, isn't it all just one mans opinion.
The other is, chances are you are right. And the truth should be heard, even if it is to a small crowd.
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PostSubject: Re: Will the big three survive?   Fri May 07, 2010 10:28 am

Trust me when I say that it's a story that took decades to unfold and I could probably write a book about it. It's like peeling an onion, there's layer after layer and you have to have each layer in order to know the story.
For example, when GM filed BK it was no shock at all, in fact I had expected for 2-3 years before it actually occurred.

If you backed me up to a wall and asked me the cause I would have to say it was the UAW. But again the story behind that statement would take hours to tell.
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