Foreign Automakers Cutting Production

[JerryL]

Looks like the American automakers aren't the only ones that are getting hurt by the times. Someone said earlier on another thread that the American automakers were hurting because these automakers weren't keeping up with foreign automakers. Granted, the American automakers are hurting more but, it isn't all for the stated reasons that they weren't keeping up with foreign quality.
http://money.cnn.com/2008/12/12/news/companies/honda_production.ap/index.htm

http://article.wn.com/view/2008/12/10/Toyota_to_further_cut_production_in_North_America_over_next__d/

http://www.ridelust.com/nissan-cutting-us-production/

 

[TheNewWorldMan]

I know how to save the auto industry. We just have the government buy 500,000 or so cars a year, and then crush them and bury them. Then there'll always be a demand for cars, and the automakers will never go bankrupt.

Seriously, I'm still unclear on what this bailout is supposed to accomplish. It's one thing to bail out an industry that is profitable but suffers some calamity beyond its control. If farmers, for instance, suffer a flood that wipes out the tomato crop, a bailout makes sense, because it compensates for a one-time event and restores the industry to profitability. But when an industry has an endemic, structural failure, all a bailout enables it to do is circle the drain a few more times.

 

[Billnew]

The world economy is down, so people aren't able to buy as many cars, so the smart
automaker adjusts what they produce.

The American Automaker has been cirling the dran for sometime, the economy is sucking them towards it faster. If the auto makers do nothing different, they should not get any money. If they are making vast changes, reducing costs and improving quality, making only the cars the people want(not making pc cars, without knowing the people want them,), not making cars that people use to like, etc.
I don't believe the new fuel cars will be made by the big three. Some new maker will emerge, because the current industry is unable to adapt quickly enough.
Just IMO

 

[ArnautDaniel]

I know how to save the auto industry. We just have the government buy 500,000 or so cars a year, and then crush them and bury them. Then there'll always be a demand for cars, and the automakers will never go bankrupt.

That's pretty much what the military does for the economy.

I mean the US has used military spending as a way to give corporations money for making useless things that will go obsolete and be replaced for decades.

Why not cars as well?

Seriously, I'm still unclear on what this bailout is supposed to accomplish. It's one thing to bail out an industry that is profitable but suffers some calamity beyond its control. If farmers, for instance, suffer a flood that wipes out the tomato crop, a bailout makes sense, because it compensates for a one-time event and restores the industry to profitability. But when an industry has an endemic, structural failure, all a bailout enables it to do is circle the drain a few more times.

The bailout is supposed to accomplish the reelection of sitting members of Congress. The economic mayhem that would come from these companies going under would certainly prevent their reelection.

 

[variant]

Seriously, I'm still unclear on what this bailout is supposed to accomplish. It's one thing to bail out an industry that is profitable but suffers some calamity beyond its control. If farmers, for instance, suffer a flood that wipes out the tomato crop, a bailout makes sense, because it compensates for a one-time event and restores the industry to profitability. But when an industry has an endemic, structural failure, all a bailout enables it to do is circle the drain a few more times.

The problem is that demand has fallen off sharply and it won't be fixed by keeping GM in business for x amount of months.

A large portion of our economy was based on easy consumer credit and it has suffered a death blow. People can't find work that will pay what it really takes to support all this consumerism.

The problem is going to get worse before it gets better since some of the best working jobs in the country are tied up in these companies that are failing miserably.