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Another Sledgehammer Swing

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Old May 21, 2005 | 04:19 AM
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Default Another Sledgehammer Swing

Asian Carmakers Settle Into the South

By Greg Schneider
Washington Post
Saturday, May 21, 2005

As profits fall and sales slump at General Motors Corp. and Ford Motor Co., thousands of autoworkers gathered in Montgomery, Ala., yesterday to celebrate the opening of a $1.1 billion factory to build Hyundais.

The Alabama factory, the first in the United States for the South Korean company, is the latest in a parade of foreign-owned facilities springing up throughout the South. Each one -- Nissan Motor Co. opened a factory in 2003 in Mississippi, a Toyota Motor Corp. truck plant cranks up next year in Texas -- is another sledgehammer swing at the crumbling fortunes of Ford and GM.

http://www.washingtonpost.com/wp-dyn/conte...5052001490.html
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Old May 21, 2005 | 12:00 PM
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How is this not bad for Toyota and Honda?
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Old May 21, 2005 | 12:34 PM
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he didn't say it was or wasn't bad for Toyota and Honda, he only said it was bad for Ford and GM. and it is.

although I have to say, it's probably bad for Hyundai too, really. these former GM and Ford workers who helped domestic cars their reputation for poor build quality can now show their lack of work ethic and "hey I'm Union, so DON'T MESS WITH ME" attitudes in the poor quality builds they'll do with these Hyundais.

I'd rather buy a car built by Japanese on Japanese soil. their strong work ethic and sense of pride in doing a job right is what has given Japanese autos their reputation for excellent build quality and reliability. I'd do a long pause before buying any car made on American soil, no matter what brand it is.
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Old May 21, 2005 | 12:53 PM
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actually, most of the southern plants are not union controlled like they are in the north.

the southern states are what you call "right to work". one of the center pieces of this is that workers don't have to pay agency fees. an agency fee is a fee a worker MUST pay to a union if he/she does not join. it is usually equal to union dues so workers just go ahead and join. this policy is the thing that is the most responsible to the extreme power of UAW in the north and the biggest impediment to the resurgence of the northern manufacturing states.

the southern states do not require agency fees to be paid, so workers who do not want to be in the union don't join, and DON'T PAY. Now, there are unions in these states, but since a minority of workers join, or even care, they don't have the power they have up north.

the import brands who have built plants have done the right thing from the outset. they treat workers well and pay fairly. Of course, if they piss off the workforce, they can join the union. this is a 2-way deterrence that balances out.

Now, for the northern states...and ford and GM to become more competitive, agency fees should be abolished. GW bush did this as his last thing in office...then slick willy reinstated them first thing. Now, who is is who does not want agency fees abolished? unions!
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Old May 21, 2005 | 02:14 PM
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well it shouldnt matter if theres a union because hyundai builds their cars to the same quality everywhere in the world... right?

i doubt union people say, "ah it they dont need a steering wheel im too tired to put it on" or "i want a break so this hyunda is going without a passenger seat"

plus im sure all car companies go through an inspection of all cars before sending them out? cadillacs are good quality.
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Old May 21, 2005 | 04:08 PM
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Originally Posted by tritium_pie,May 21 2005, 12:34 PM
I'd do a long pause before buying any car made on American soil, no matter what brand it is.
Mrecedes M-Class and BMW Z3?

The yank Honda Accord V6 is "meant" to be of a lesser quality than the Honda Accord Euro 4 cyl.
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Old May 21, 2005 | 04:10 PM
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Remember that many of the "quality" Japanese cars you are talking about are now built in the USA too. It can be done. The BMW Z-3 is built in the USA and has a good reliability record. Most Z-3 problems are due to design issues rather than build quality issues.

US companies now have to shift to making cars instead of trucks and SUVs. Market interests are swinging back to cars, I think.
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Old May 21, 2005 | 06:24 PM
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Originally Posted by tritium_pie,May 21 2005, 04:34 PM
he didn't say it was or wasn't bad for Toyota and Honda, he only said it was bad for Ford and GM. and it is.

although I have to say, it's probably bad for Hyundai too, really. these former GM and Ford workers who helped domestic cars their reputation for poor build quality can now show their lack of work ethic and "hey I'm Union, so DON'T MESS WITH ME" attitudes in the poor quality builds they'll do with these Hyundais.

I'd rather buy a car built by Japanese on Japanese soil. their strong work ethic and sense of pride in doing a job right is what has given Japanese autos their reputation for excellent build quality and reliability. I'd do a long pause before buying any car made on American soil, no matter what brand it is.
Trit,

No offense, but I think yours is a rather dated point of view. I'd have agreed 100% with you in the '80s, but not anymore. The union thing notwithstanding, American mediocre car design and corporate "fat" is what has been so embarassing in the big three. I don't think it's the factory workers that have dragged them down (just my opin.).

Anyway, there are a few domestic products I'd consider these days, but not many.

Oh, and Bill is right of course... Many of the foreign brands (Honda included) build and assemble cars in the US that are the equals of their Japan-built cousins.
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Old May 21, 2005 | 06:42 PM
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And Guys don't forget the heavy health care burden the US car companies have. Multibillion dollar expense that translates into 1,500+ for each car or something.

C U AT 9K I beg to differ in your opinion of a union worker. They don't give a fvck because they know they fall under the umbrella. Trust me I know from experience and have many buddies in the manufactoring industry and have to grapple with the careless attitudes of union workers. Down with the union, they are no longer needed and they hurt workers in the end then help. IMHO.
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Old May 21, 2005 | 06:50 PM
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George,

Maybe if the big three could design some worthwhile cars, the workers would care a little more?
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