Why is GM failing so bad?

Discussion in 'Economics' started by peilthetraveler, Nov 17, 2008.

  1. GM sells about 11 million cars per year. If GM fails, then wouldnt Ford or another company just pick up that market share? I mean those 11 million people are still going to have to buy cars later right?
  2. Why would anyone want to buy a GM or Ford vehicle?
  3. Not a new one, but used they do present a nice value.
  4. True, because their market value depreciates very quickly. However, that doesn't really help the manufacturer.
  5. Why wouldn't they?
  6. jprad


  7. They are not nearly as well made or reliable as, say, their Japanese counterparts, and they don't retain their resale value particularly well. Those are not selling features.

    Over the years, I've owned American, German and Japanese vehicles, none of them high end. The only thing the American cars I've owned had going for them was their low price, since I bought them used. Their ride and road handling can best be described as "clunky."
  8. If I can get a 5 year old Aviator for 25% of the cost of the original then long live the big 3. Other than that, don't let the door hit you on your way out.

    I wonder how the scenery would change if the big 3 were to walk into the sunset.
  9. 377OHMS


    Why is GM failing so bad?

    IMO, both Ford and GM are like homebuilders.

    They fail to reduce production when demand is clearly dropping.

    They just keep churning out inappropriately large vehicles and launch right off the cliff. It has to do with how Ford and GM contract with their suppliers. They can't seem to turn off the parts spigot when they need too. I think they tried to change that when they founded Saturn and that marque seems somewhat more responsive to sales conditions, but who wants a Saturn? That little roadster is the gayest thing I've ever seen.

    I hope they don't fail because I would hate to see the devastation to Michigan and Ohio that it would cause. I know alot of people hate these companies and hate the unions. I can understand the rage at the idea of a bailout. Its just that, well, who is going to build tanks for the next war? Hell, GM even built airplanes under license to Gruman in WWII.
  10. Chevy and Ford build excellent trucks.

    #10     Nov 17, 2008