Posts Tagged ‘General Motors’

Keep It Made In America!

October 27th, 2011

Keep It Made In America is a rallying cry being heard across 34 cities as the Alliance for American Manufacturing kicks off a tour across the country promoting Made In America and especially the impact of auto manufacturers going bankrupt.

A staggering 7.2 million paychecks rely on the American car manufacturers alone – more than many countries pay their entire population and the knock on effect on local economies of even small scale lay offs is highly significant. Bowling Green, KY and 200 workers at a local Corvette location are waiting to hear if GM will file for bankruptcy – the effect on the families involved is bad enough but the effect on the local economy of another 200 pay checks not being spent in grocery stores, malls, home improvements and the rest is just another hard nail being driven into smaller, localized economies already struggling with their own issues.

We have to keep positive – Chrysler has already filed for bankruptcy and if GM does, another wave of lay offs are going to happen BUT, and it is a HUGE BUT – perhaps this is what we need to do to get ourselves out of the mess and back on track fast!

The takeover of Chrysler by Fiat will introduce US manufacturers and suppliers to the small car technology that has made Fiat into such a giant around the world with a range of vehicles which are, well to be blunt, very small. Certainly very small compared to the US market!

Small may not suit the US consumer so well, but the technology which produces extremely high gas mileage certainly will and with the economies of scale such a merger is going to produce, prices for greener vehicles will fall (Japan indicates this right now with the new Prius hybrid enjoying 40,000 advance orders for this month alone) and the sooner we get American workers back on the production lines and putting their pay checks back into local economies.

You Can’t Build A Reputation on What You Are Going To Do!

July 7th, 2011

Henry Ford made this statement which is pretty apt as Ford prepares to re-enter the green car market with a two-year plan to launch a range of plug-in hybrid and electric powered vehicles.

The second largest car maker in the US, Ford has suffered as much as any other car maker in the world and there is all that federal government money washing around so maybe I am being cynical, but there are plenty of green strings attached to all that greenback!

Nevertheless, the bailout and other federal monies washing around the system (and I think there will be a lot more thrown in before this crisis is over) is obviously having an affect on the psyche of the major car manufacturers.  Ford is one of the car makers which has not asked for bailout monies but financially it has suffered very badly and there are huge sums of federal money available which are not part of the bailout plans we keep hearing about on the news.  The real issue is how much of this is paying lip service to assuage public opinion and get the bailout money past the lawmakers.  While Ford have obviously had this initiative up their sleeves for quite some time, the timing is brilliant in the context of playing your cards at the right time and to greatest effect.

This brings us right back to Henry’s statement – Ford is not going to gain any ground in a real green car market with sweeping statements which fail to materialize and they are late coming into this sector while rivals such as cross-town GM and Toyota have been making plenty of mistakes and learning what works for green car buyers for several years.

Ford has already had one false dawn with the green car market and this may be second time lucky but could there not be a worse time to launch a foray into a new market (to Ford)?

Only time will tell.