The U.S. auto industry is in trouble simply because of the people running the company and the people working there. The UAW used to be a very strong union, almost comparable to the Teamsters of years past. We all know that it takes more to live each year as everything increases, so wages must go up also, right? The members of the UAW rank and file kept demanding more and more money each contract and look where it got them. Jobs cut, jobs sent overseas and jobs sub-contracted out to other sources. The company didn't want the plants shut down due to a strike so they agreed to higher wages and more benefits each time. Someone finally came to the conclusion, hey , we can get these cars built cheaper. Each year the cars were being made from cheaper materials, selling for more money, and selling more models. Dealerships were placed 2 blocks apart and the competition really stiffened. The great migration to Detroit and the surrounding car producing areas flourished until, the company executives lined their pockets and made a move to correct things, but, it was already too late. Look at Detroit now, abandoned buildings, homeless rampart, unemployment highest in nation, and no solution in sight. Even Aretha Franklin and Stevie Wonder can't help them now. Now they want the government to bail them out, can't see that happening.
The government bailouts have been a joke on the American people and a burden for something we had no part in. AIG takes their million dollar spa visits and has the gull to ask for more and we gave it to them.
The auto companies aren't in the big financial bind they say they are. For years General Motors and Ford both have had financing companies in car loans, mortgages and so forth. They both made smart decisions in their mortgage business as shown in their stocks and such. They have and are still making money in these divisions. It's sad to say, but, sometimes workers and the company put themselves out of business, the greedy American way. In World War 2 we destroyed Germany and Japan only to help rebuild them back better than ever and both have flourished better than the U.S., because Americans get comfy and lazy, thus tending to ride the wave until too late. The Toyotas and Hondas are very well made cars, good mileage, excellent warranties and mainly priced right, because they don't have the same competitor 2 blocks away with the same models. GM and Ford flooded the cities with dealerships too close to one another causing pricing wars and it has eaten a lot of dealers up and closed their businesses. Four words can sum up U.S. auto company woes, greed, corruption, and poor planning.
