
Union boss fearful for GM & Ford, wants to block imports
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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.
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By Alex Posted: 2/14/2008 7:40am PST
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.
By chris Posted: 2/14/2008 7:52am PST
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
By CraigS Posted: 2/14/2008 8:06am PST
By JezzP Posted: 2/14/2008 8:26am PST
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?
By Jason Posted: 2/14/2008 8:39am PST
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.
By MrRoadrage Posted: 2/14/2008 9:11am PST
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.
By CraigS Posted: 2/14/2008 10:36am PST
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.
By chris Posted: 2/14/2008 11:57am PST
By chris Posted: 2/14/2008 12:39pm PST
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.
By Joeshmo Posted: 2/14/2008 1:24pm PST
By CraigS Posted: 2/14/2008 1:29pm PST
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?
By Dr. Duncan Posted: 2/14/2008 10:39pm PST
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