Bottom line as far as I'm concerned is that the NA automakers - most specifically GM build Shit cars. They are terrible designs, terrible quality, terrible everything. The Japanese are light years ahead of them.
If GM and Chrysler want to survive, they need to be competative with the Japanese. That means Engineering wise and Operations wise. I have NO DOUBT that North American Engineers can keep up with the Japanese, ever surpass them, but the problem is that the Accountants are running GM and not the Engineers. The Accountants are saying that in order to just stay in business, they (GM and Chrysler) need to cut costs. The ONLY way that they can cut costs is to build a substandard product.
If the NA worker's cost per hour were more or less the same as Toyota, Nissan and Honda, one would HOPE that the product would be as good since the money saved could be pumped into building better cars.
If all GM and Chrysler want to do is lower their operating costs BUT keep the quality of the their vehicles the same, then they are surely doomed. Even if (and it's a BIG IF) GM and Chrysler were to start building far better cars (best in the world), the car buying public still won't trust them. It's been too many years of GM building shit that just falls apart day after day after day. (You get in your car and you say to the car, "please don't break down today and leave me in a lurch"). It's going to be a HUGE uphill battle for GM. (I know I'll never buy another GM again as long as I live. I don't care what they claim. I'm the text book example of all that's wrong with GM. I grew up in a GM family. Pa drove GM's. Ma drove GM's. Siblings drove hand me down GMs, and then bought their own GMs. But a funny thing happened in the 90's. The cars we were buying started falling apart and needing HUGE repairs. Plastic intake manifolds cracking, Dex cool, in car fires, water in trunk, the list was endless. My parents are gone now, but their children ALL have switched to Hondas, Toyotas, Nissans, and BMW. That is the problem. GM took our loyalty for granted and built shit boxes and we all got tired of it and joined the crowd and bought imports.)
At the end of the day, GM And Chrysler need to build a better, nay, a faaarrrr faaarrrr better product. If the only way they can do that is if they cut their operating costs, then that's what they have to do.
(I surely hope, because I don't entirely disagree with you Donny, that any cost savings would simply go into the fat cat's pockets.)
I think that's the issue that Obama and Ottawa has with the current restructuring plan proposed by Chrysler and GM - it's simply more of the same and nothing will really change that much.
It's sad that the gov't has to tell them how to run their businesses, but if that's what it takes, then that's what it takes.
