Union boss fearful for GM & Ford, wants to block imports

 

Union boss fearful for GM & Ford, wants to block imports

Union boss fearful for GM & Ford, wants to block imports

Enlarge Photo
It’s no secret the Detroit 3 is losing market share to foreign makes, especially in North America were U.S. manufacturers have traditionally been the dominant players. Strong competition from Japanese and Korean makes have eroded the Detroit 3’s stranglehold on the U.S. market and has pushed one of the brands, Chrysler, to the brink of bankruptcy. Union bosses are fearful of the state of the U.S. carmakers, and one official, Canadian Auto Workers president Buzz Hargrove, has warned that even heavyweights GM and Ford could be forced into bankruptcy within a decade if the U.S. doesn’t block imports from Korea and Japan.

Falling market share is causing U.S. carmakers to scale back production and layoff workers as well as move investment dollars to offshore markets such as South America and China. "I'm very fearful. Every month when I look at the numbers, the market share losses just keep growing. For Ford and GM I think there's only one scenario if you don't stem the market share losses," Hargrove told reporters from The Globe and Mail.

Hargrove also pointed out that the situation is set to get worse for U.S. firms because of the eventual flood of cheap imports from India and China. The union boss is now attempting to meet with Canadian politicians to help get his point across to voters as well as the U.S. government. One of his solutions is to stop imports from Japan and Korea until those countries open their markets to North American vehicles.

American carmakers have already seen the writing on the wall and have made a conscious effort to focus on new markets such as India and China. In the end, market forces will decide the fate of the Detroit 3 and blocking imports in the meantime will only serve as a bandaid fix.



Posted in:
 
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
Comments (12)
  1. How about blocking prolonged strikes with outrageous demands? No, let's block the imports!

    Current situation with low dollar is very favorable for exports from US, and unfavorable for imports. If this can't help the big 3, nothing will.
     
    Post Reply
    Vote
    Bad stuff?

  2. yeah im all for american cars and the CAW... my father is a member,.. but buzz is an absolute fool... and everyone feels that way... even most of the union members feel hes a complete fux up.

    he raised a good point about korean fair trade not too long ago that koreans have bought 5 million dollars worth of canadian/american cars, and theyve sold us 10 billion dollars worth. they block us in so many ways. this is buzz's beef. he just cant seem to put it in words.

    the same is true of japan. you can't buy a ford/gm/chrysler in japan but japanese cars are overrunning us here. I'm not saying that our cars would sell well over there... hell.. even lexus (basically american styled toyotas) have been a failure in japan.

    its his principles. we freely accept imports into our countries but specifically asian countries block our progress there.

    ford owns 33% of mazda simply because by law they cannot own any more. mazda is such a huge strong point in the ford empire they would surely have invested more in them if they could have. but they cant
     
    Post Reply
    Vote
    Bad stuff?

  3. The bottom line is, build some cars with decent quality, durability and reliability and people will buy them just like they buy imports. Keep producing the sub par crap that is being produced now and they deserve to go out of business!!
     
    Post Reply
    Vote
    Bad stuff?

  4. When Cadillac is launched here in Australia I plan to buy a CTS. Not out of sympathy or support because it\'s American but because I have driven one and seen it on the road and think it\'s the best car for that price. That\'s the way all American cars should be.

    I have also heard good things about this new Malibu car GM is making but it\'s not sold here. Anyone have first hand experience whether this car really competes with the Japanese makes?
     
    Post Reply
    Vote
    Bad stuff?

  5. A lot of the blocking has been reduced by world trade agreements. The issue is no longer about protectionism by Japan or the Republic of Korea, but rather that -- guess what? -- Japanese and Koreans don't WANT typical American cars.

    Is that their fault? How many subcompact and microcompact models do the American automakers offer there (a few, thanks to GM Daewoo)? Do East Asians really want Impalas and Silverados? The evidence seems to be, no, not many of them do. Better new GM and Ford models (such as the new Malibu) might make more of a dent, but quality issues aside, there's a mismatch between product and demand. The fact is, most American cars are too big for the rest of the world. Even in Europe, they don't sell big Toyotas like the Avalon; they don't even sell the Camry in the UK anymore because it's not popular enough, and that's the #1 car in the USA. As for Chrysler, well, they can't even sell the Sebring here, much less anywhere else.

    So, who should be blamed, and punished? Is Kia to be punished because it makes a better car for Americans than GM can make for Korea? Should I not be allowed to buy an imported Toyota that I want, simply to protect an American industry that makes cars I don't particularly care for? That's a ridiculous proposition. If Detroit wants foreigners to buy their cars, they have to make cars that those markets want (newsflash: that's no big trucks, no big SUVs, no barge-sized family sedans). Or, they can stick with the US market and make their product line so compelling that fewer people would want anything else. If they can't do either of those things, and it costs them bankruptcy, then I will be truly sorry for the employees affected, but it will be their management's fault.
     
    Post Reply
    Vote
    Bad stuff?

  6. Chris,

    Why do you say that you cannot but a Chrysler/Ford/GM in Japan? You clearly have never been here. Just down the road from my house is a Chrysler/Jeep dealer, with a Cadillac/Opel dealer just across from it. As for Ford, they sell a mixture of European and American Fords in Japan. There are plenty of Jeep Cherokees, Ford Explorers, and Chrysler minivans on the road here. These are all official imports, by the way. As for Lexus, the name has only just been introduced here, but I can assure you that the Toyota Celsior (Lexus LS to you) is massively popular. In any case, you see a lot more German cars on the road in Japan than you would in America, so the country isn't exactly keeping imports out. The only way the Japanese block progress of American cars is by demanding high levels of design integrity and build quality. Judging by the sales figures, it seems that you Americans are doing the same.
     
    Post Reply
    Vote
    Bad stuff?

  7. JezzP,

    The CTS is one of the best Caddillac's built but my only hesitation to buy one would be their durability. I've seen most American brands here look like they're 10 year's old after 4 years. The quality simply isn't there.

    Regarding the Malibu, it's sales are doing too well. Just because GM advertises it's a great car and competes evenly with Toyota and Honda doesn't make it the truth. Advertising is just that. I've not seen any new Malibu's on the road. As they say, proof is in the pudding and this pudding has proved nothing yet.
     
    Post Reply
    Vote
    Bad stuff?

  8. japan is not an open market they tax the crap out of a car imported into there country.Quality,yea right TOYOTA alone has had over a million recalls. and thru the years they call them service advisories thus the press give them a free ride because they are the darlings of the media.How long is it going to take for our political leaders to wake up and stop this manipulation of countries keeping there money de-valued so they can export and destroy the home base and market of there targeted country.One day when what comes around and goes around hits the fan and all the middle class paying jobs have left north america to countries eg, china india etc and the product is sold back here at full price who is going to buy it???? yea keep cutting the pay scale in half .its the haves and the have not-s.Remember free trade ,nafta and soon this korean free trade has been forced on us not voted by the people,and they told us we will benefit from it???????How by the millions of good paying jobs that left our countries to third world countries and our standard of living has been cut and our wages are falling.oh yea lets go backwards in time.wake up people//
     
    Post Reply
    Vote
    Bad stuff?

  9. that chris isnt me.. craigs.. you havent seen a new malibu cause the dealers cant stock them in the markets that theyve tried to push into. in the north east,.. theyre selling the new malibu so fast they cant keep them on the lots... so they havent been able to even get a new malibu out to some states..

    mrroadrage... your right, i havent been to japan, and i had no idea.. clearly. but i doubt very much that these cars sell well. but the fact remains that japan is one of the most accepting asian nation and even they will not allow foreign ownership of their companies.

    I know the markets are different and while there may be a lot of people in north america that want asian sized vehicles, and clearly asians for the most part dont want our large cars.. the fact remains that asia and north america do not have a FAIR trade agreement.

    we've provided subsidies and other encouragement for these makes to do business here but our brands fight resistance over there.

    im kinda with chris on this one. asian makes have had a free ride with the american press as far as quality is concerned. toyota is the most recalled brand right now... followed by VW. the camry's doors fall off, the sienna's lift gate falls off, the 5.7L engine blows up.. and thats if the 6 speed tranny hasn't lost gears before 10,000 miles, and if the car doesnt fall apart on you, well, the throttle is going to go Wide Open for no reason and cause you to smash your beautiful import into a freeway barrier.

    ...and wasnt there an issue with wheel hubs falling off civics?

    everyones got quality problems. its not a continental problem,.. not even a brand problem... its a problem from one model to the next. VW is the second most recalled brand on the planet right now and they make probably the best full sized sedan on the market.
     
    Post Reply
    Vote
    Bad stuff?

  10. the thing about korea, there is no room for big trucks! but there are plenty of american sedans....
     
    Post Reply
    Vote
    Bad stuff?

  11. Chris 2 :-)

    I live in Boston in the NE and I've never seen a single Malibu so I'm not sure where you're getting your facts from?
     
    Post Reply
    Vote
    Bad stuff?

  12. Don't you just get a kick outa people, like these guys and organizations that extort money from corporations and you and I have to pay for it. Then, they blame everyone else and kick and scream because their scam is at long last collapsing. Pathetic indeed, actually a sad commentary on humanity. Greed over all else and when the well runs dry scream to the sky and blame God and everyone else.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Research New Cars

Go!


 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.
 

Use the form below to send us a tip, give us feedback, or just say hello.

(max 750 characters)