Will the meltdown of the Big 3 spawn a new American auto industry resurgence?

Discussion in 'OT Driven' started by Variant, Jan 8, 2009.

  1. Variant

    Variant Cast in the name of God, ye not guilty.

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    Is there any chance at all that we could go back to having a multitude of small auto manufacturers in this country? I've been reading a lot lately about the American car companies that disappeared (or were swallowed up) before my time; Nash, Hudson, Packard, Studebaker, Pierce-Arrow, etc. I regret not having been around when we had more car companies than just GM, Ford and Chrysler out there. I'd love to see it happen but I have no idea if it's even possible these days.
     
  2. TriShield

    TriShield Super Moderator® Super Moderator

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    Highly unlikely.

    They'll eventually dwindle into nothing and the foreign companies will simply continue to expand into their place.
     
  3. 396Hawk

    396Hawk Active Member

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    Start up costs would probably make it damn near impossible.
     
  4. Variant

    Variant Cast in the name of God, ye not guilty.

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    To be honest, I'd prefer to see the gov't subsidize that, as opposed to throwing a lifeline to the Big 3.
     
  5. REDTAIL

    REDTAIL New Member

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    They should make cars better than foreign makers...and make them cheaper..lolz...grab a hold of the market by letting the consumers win.
     
  6. Toxicity

    Toxicity New Member

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    If you think that a car company started out of the blue would be able to put out a product up to the quality of any existing major manufacturer, you are nuts :rofl:

    Not to mention that is just impossible either way
     
  7. Toxicity

    Toxicity New Member

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    My av is so small you can't see it!
    That doesn't work, surprisingly.
     
  8. Variant

    Variant Cast in the name of God, ye not guilty.

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    I wasn't going that far, I was just wondering if there's any way we might go back to having a multitude of car companies in this country again, rather than just 3 big ones. Aside from the small niche builders like Panoz or Tesla.
     
  9. TriShield

    TriShield Super Moderator® Super Moderator

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    As they currently are none of them are sustainable and Chrysler probably won't make it. Ford and GM have to be vastly smaller operations with fewer plants, employees, brands and overall overhead.

    Both should be two brands with the requisite small dealer network and plants. Both need to put out high quality and nicely designed and styled cars in each class and back them with the same warranty the Koreans used to gain trust and a foothold in our market.

    That's the only way this ship is ever going to be righted. A bailout was the absolute wrong thing to do.
     
  10. deusexaethera

    deusexaethera OT Supporter

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    If the Big Three don't make it, I bet their piece-parts will get spun off as independent companies, which will spare them the expense associated with startup. If this happens, it will happen because most of the big foreign players aren't going to want to dick around with buying and retooling those factories and having to put up with union labor.

    BTW, can we please not forget that most of the Japanese cars sold in the USA are also made in the USA? It's not like we don't have an auto industry, we just don't do the design work anymore -- and given most of the designs American car designers have come up with in the past couple of decades, that's probably a good thing.
     
  11. TriShield

    TriShield Super Moderator® Super Moderator

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    Untrue.

    The ports in CA are brimming with imported Japanese cars that dealers don't want and it costs Japanese companies a fortune. They still import huge numbers of cars to this country.

    The American auto industry is Ford, GM and Chrysler. The foreign companies are just that, foreign, and they each have very few plants here.
     
  12. Smelly-Kitten

    Smelly-Kitten Dept. of Redundancy Department *Side Pipes

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    Not as much true for European imports like German cars I believe, they have to pay so much over the hourly wage in Germany to support the required benefits that it makes building cars in America more profitable. I know that for sure, but am not sure if many are actually being made here.
     
  13. deusexaethera

    deusexaethera OT Supporter

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    I never said they build all of their cars here. Given the large percentage of the American car market "owned" by Japanese auto makers, even if they made the majority of their USDM cars in the USA they would still have to import tens of thousands every year. But they still build tens of thousands more here in America, using American parts and labor.

    Macroeconomics will not allow one country to maintain an export surplus (or an import surplus) forever; Japan learned that in the 80's, and China is going to learn it in the next couple of years. The only recourse is to buy something in the USA with all those dollars they have, because the USA is the only place where dollars are worth anything. That's what the Japanese did when they set up their factories here.
     

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