Profits over People
Profits over People
Ford’s transmission will hurt them. But it also reinforces the perception of American small cars as inferior to Asian.
Here’s my prediction: when interest rates rise, our fake economy will take a hit like 2009. Sales of cars in general will plummet, especially the more expensive ones (trucks and big SUVs)
This will coincide with a spike in oil prices, leading to $5 gas. Spike could be due to the financial problems with fracking, or some hot geopolitical event. This means small cars will suddenly be popular.
The Americans won’t have them.
GMs EV fantasy will be just that, a fantasy. EVs require subsidies to compete, and in any case GM’s ability to crank out Bolts is rather limited. There are no Volts.
So the Detroit Three will lay-off. Even so, their revenues will drop so much, GM and Ford will burn thru their cash stash, at the same time they have to spend billions to recreate the ability to make small cars, which they have jettisoned in the past few years. And they will have to sell those at a discount to compensate for the c-aptastic transmissions, ignition, and perception.
Also, demographically, America is different. Americans who are of Hispanic, and especially Asian, descent, much prefer the Asian brands, which conveniently assemble many of their cars in the USA.
In this perfect storm, will GM and Ford be around in 2030? Or will they be bought out and rescued? Perhaps by the Chinese? Bailed out by a US government that is carrying 3x the debt it had in 2009?
As I think of how foolishly, IMO, GM and Ford abandoned small cars for current profit margins, and how much debt we have in America—the federal govt, college debt, 72 month car loans, rather ordinary houses in Royal Oak going for $500k, I can’t say I’m optimistic.
We created a whole systems engineering group but after a few years felt it was too expensive and layed off half the people.
Once the NHTSA auditor was gone, half the people were let go.
They are now running programs like Ultra Cruise with a half a– systems engineering approach to just get it done.
The article is just talk. All OEMs still have a lot more they can do.
We are no better. People knew about the ignition switch and got promoted too.
Would it surprise you that the chief engineer got promoted to being the chief engineer of Ford of Europe after she made the call to put that c-ap into production?