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Thursday, November 20. 2008
Kondratiev thought he’d check in on how Honda was doing while the Detroit Three were begging scraps from Congress. Not bad -- on October 27, 2008, Honda Motor Co., Ltd., announced a summary of automobile production, Japan domestic sales, and export results for the month of September 2008 and the first half of the current fiscal year (April-September 2008), including all-time records for worldwide auto production and production in regions outside of Japan for the first half of a fiscal year.
Honda Motor has announced that its worldwide vehicle production for the year-to-date increased 3.4% to 2,985,638 units, compared to the same period of 2007. 915,574 of those cars were made in
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Long time no hear from you, Kondratiev, deep-thinking up in the birch and spruce woods.
Don't be a stranger.
I recently bought a Honda. Two, in fact.
The preponderance of Americans who express their views on such things are idiots. They do not realize the earthquake effect the downfall of any one of these companies might have. They won't realize until one of the 3 million Americans who lose their jobs because the bailout is disapproved is in their living room with their wife and kids hog-tied, robbing them for everything they have, because they have just lost their job. The preponderance of ignorant people with views on this subject fail to realize that 25 billion dollars, is about $100 of each tax payers already payed taxes. They are too mean-spirited and greedy to understand what it means to do something for the good of the people.
One more thing. These CEO's didn't start these companies. They are just paid to run them. So why would they pay out of their pockets to fix them? Another thing. These companies have plants all over the GLOBE. They don't have time to wait in line in an airport when they are running companies with hundreds and thousands of business locations.
Get it together America.
Aha, “Truth”, I see you are a GM guy. We know that General Motors, teetering on the brink of insolvency, has taken the extraordinary step of calling on employees and dealers to personally urge lawmakers to approve another loan package that might keep the beleaguered automaker from going under.
In an e-mail obtained by Wired.com, Troy Clarke, president of GM North America, urged 29,000 employees to contact their representatives and senators and tell them to support the automaker and the domestic auto industry, saying 3 million jobs are at stake. "Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis," he wrote.
"Next week, Congress and the current Administration will determine whether to provide immediate support to the domestic auto industry to help it through one of the most difficult economic times in our nation's history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis.
. . .
"The consequences, however, of a portion of the domestic auto industry collapsing extend far beyond GM's ability to continue its transformation. One in 10 American jobs depend on our industry, as well as the health of communities, dealers and suppliers in all 50 states. As you know, nearly 3 million employees, retirees, and their families also depend on us for their pensions and health care. Because of our economic contribution, the cost of allowing this industry to fail would be catastrophic: 3 million jobs lost within the first year; U.S. personal income reduced by $150.7 billion; a government tax loss over three years of more than $156 billion.
"This level of economic devastation far exceeds the $25 billion of government support that our industry needs to bridge this current period. Today, I want you to take the time to contact your members of Congress to ask them to support America's domestic auto industry. Please call the following number to be connected with your legislators 1-866-927-2233. Directions and key messages are in the attached document to assist you with the calls. Also attached is a fact sheet that includes the economic figures cited above.
. . .
"Thank you for your urgent action and ongoing support. "
GM North America
GM also writes:
"General Motors dealers in the United States delivered 170,585 vehicles in October, down 45 percent compared with a year ago. GM truck sales of 97,119 were down 51 percent and car sales of 73,466 were off 34 percent. The steep decline in vehicle sales was largely due to a significant drop in the market’s retail demand as uncertainty over the deepening credit crisis impacted consumer confidence."
“The market has been shrinking for three years, but in October we saw a dramatic decline for the industry and GM,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “We are obviously disappointed in our results which reflect a difficult comparison with a strong year-ago October performance. More importantly, it also reflects an unprecedented credit crunch that is dramatically impacting the entire U.S. economy – from the housing market to big and small companies to banks to family run businesses. The credit freeze has also had a very negative impact on consumers’ confidence and their purchase behavior across America.”
Sheesh, “Truth”, right now it seems that only GM is in trouble. Although they claim to represent all auto manufacturing in the US, my Honda article shows that Honda (and Toyota, Nissan, Subaru, BMW, and all the other companies choosing freely to manufacture cars in the USA DON’T NEED HELP, thanks.
GM tells us, and I believe it:
GM has cut its payroll drastically, by 45.8 percent in the U.S. alone since 2000. In fact, GM is far from the largest employer in the industry. With 252,000 employees worldwide, GM ranks fifth overall behind Volkswagen (373,400 employees,) Renault/Nissan (316,121 employees,) Toyota (316,121 employees) and Daimler (272,382 employees). Yet GM sold more vehicles worldwide last year than any other automaker.
Hurray for GM. Too bad they make crappy cars.
Successive generations of GM executives have settled labor conflicts by mortgaging their future, and the debt is coming due. A bailout now will merely postpone the inevitable day of reckoning.
However, look at the good side. A Chapter 11 filing will mean that they get to continue to make cars, and employ most or all of those 252,000 employees. However, it will allow pension liability to go to the Pension Benefit Guarantee Corporation (thus soaking the taxpayer a little anyway – does that make you l feel better?)
Chapter 11 will also allow them to terminate thousands of dealership franchises they no longer need.
Oh, and I am certain this will not appeal to the UAW or their flunkies in Congress, their contract will be toast. If they chose to kill GM at that time, I’m sure the Germans or the Japanese might like to pick up some GM brands that still have some aura of quality.
I did not bother reading the transcript, I just want to say that at CNN the top headline on their homepage reads "Bailout not needed say folks near the Hona plant"...........If that does not make Jay Lenno then he needs to be slapped!!
I retired after thirty years from a very conservative major airline...no unions with the exception of pilots.
When airlines fell on hard times there was no government bail-out ..chapter 11 was where they landed. Each was forced to re-group,trim the sails or go under. The ones that were unable to make muster are now history. The cuts were deep and painful . Most retirement benefits promised as per the agreement at the time of employment vanished.
I can think of no reason why the union driven, mismanaged Auto industry should be spared from the same fate with the aid of my tax dollars. Let them file Chapter 11, become better and compete.... how many years have we heard 'American made autos have improved and is now on a par with the imports.' That was believable ten years ago , but not now.
I've owned a Honda for the last 20 years and have loved every second of it. To hell with Detroit. The public has voted by staying away in droves.
Ford has spent the last thirty years moving factories out of the US, claiming they can't make money paying American wages.
Toyota has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results: Toyota made $4 billion in profit while Ford racked up $9 billion in losses.
Ford managers are still scratching their heads, and collecting bonuses...
I've owned cars made by each of the big three over the years, they all seemed to disintegrate around 70k miles. I bought a new Accord a few years ago which now as over 100k and I haven't had one single problem with it. It runs as good as the day I bought it. Same story with my wife's CR-V with 80k.
Just change those timing belts according to the owner's manual or else...
My old Hondas and my current Nissan are all champs.
My idea for an auto bailout - free bus tickets to Indiana, South Carolina, Alabama, Kentucky, or whatever other location they want - to apply for jobs at a "German" or "Japanese" run plant.
I had owned Toyotas and Mazdas since 1974 and before that a 1971 MGB. I also assumed that American cars were junk. In 05 I bought a Dodge Magnum wagon with the hemi. I was so surprised by this car that I also Traded my Toyota Tacoma for a Dodge Ram. My Magnum now has just under 150,000 troublefree miles and my truck has 103,000 troublefree miles. No rattles, squeaks, rust, etc. I plan to drive the Magnum till it drops, but I would like to buy a Cummins powered Ram someday. The Honda Rigeline isn't gonna cut it for me, and I don't like the new Tundra. Anyway, the Dodge's have surprised me with their gas mileage and quality.