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Monday, February 16, 2009

GM and Chrysler to speed up changes!

FT article

I don't know what's worse; US car companies not being able to make cars people want or, US politicians, thinking that they can make cars that people want.

GM and Chrysler just unveiled plans to revamp their business models, towards a more effective and cost manageable. The government "forced them" to do this.

I think the first place to start is cutting those built in unionized wages. Second, I think it would be a good start, also, if Detroit would make more attractive, "yuppie" type cars.

Let's be fair. American cars are unattractive. Very unimaginative designs they have. Also, they are, by far, greater gas guzzlers.

So, unless the car companies have in mind to fix these issues, there is nothing the companies can do to maintain competitiveness.

The US car company, is a victim of US policy. US energy policy. US labour policy. And, US litigation policy--safety designed cars, which are box uglier than their Japanese counterparts.
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