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Top 10 Turnaround Tips for GM/Ford/Chrysler

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Comments

  • The #1 cost for GM and the reason it's going belly up is LABOR. The #1 way to eliminate this problem and survive is Bankruptcy. GM may make some enemies, but that's life and if they are to survive, Labor is where they start. Period.

    Alongside of labor are the enormous growing costs of lifetime health care. When GM files for bankruptcy, all agreements with the UAW are legitimately over.

    it's time to make employee's and ex-employees pay for some of the costs, like all other American's do. This should also apply to those in States and the Federal Government who get gold plated benefits plans.

    Under new labor agreements structured to benefit the company more than the workers, you allow the company to survive, as well as keep jobs, good paying ones, and create a balanced benefits plan where the burden of costs are shared. This is not only fair, but what sane minded people agree on.

    After Bankruptcy and new Labor agreements with competing labor units, and possibly newly created unions, GM can remain afloat while it focuses on producing vehicles that get 40 mpg or better and consolidate their lines to offer less models, but higher quality with a greater profit margin.

    Together with realistic labor agreements, strong supplier alliances and models that people want to buy, GM will breathe fresh air and those who invest and buy GM stocks will remain confidant and retain more of their hard earned money.
  • steverstever Viva Las CrucesPosts: 41,296
    Here's another:

    If the manufacturers file banko, they can get rid of the franchised dealers too. Let us go to a lot somewhere with some demos to test and then let us order a car direct from the factory built to our specs.

    GM can hire their own mechanics and build central service facilities to handle the warranty claims and other work. They'll have so much more incentive to keep their costs down, reliability should soar.

    Moderator
    Minivan fan. Feel free to message or email me - stever@edmunds.com.

  • 1. GM/Ford/Chrysler need to publicly endorse and lobby for H.R.676, the Medicare for All bill that's before Congress right now. If the Big 3 don't have to pay for the health care of hundreds of thousands of current employees and retirees, costs to manufacture cars will go WAY WAY WAY WAY down.

    2. The Big 3 need to publicly endorse and lobby for H.R.25, the FairTax Act that's before Congress right now. This bill eliminates ALL federal taxes (payroll, income, capital gains, etc.) and replaces them with a inclusive sales tax. With all of the taxes removed from the components of cars and removed from employee labor, costs to manufacture cars will go WAY WAY WAY WAY down.
  • bpizzutibpizzuti Posts: 2,743
    Don't be like GM and Chrysler. Continue to show that you're not GM or Chrysler. Avoid taking a bailout at all costs and incurring the wrath of the American public, like GM and Chrysler (who in this area are now seriously offering 50% off deals just to get people to come in a buy cars, that's how much trouble they're in).
  • ehaaseehaase Posts: 328
    I thought this was a good analysis of the restructuring plans for GM and Chrysler:

    http://www.christonium.com/automotive/ItemID=12351354136185
  • smarty666smarty666 Posts: 1,503
    its been awhile since anyone has posted here and a lot has happen to the American auto companies since a year ago, namely, the chapter 11 bankruptcy of GM and Chrysler and the increased market share and resale value of Ford!

    Personally, of the big 3, I don't know if Chrysler is going to make it in the long run; they seem to still be struggling terribly even since bankruptcy so I can't really think of what else they can do except streamline down the Dodge line to maybe 3-4 models and make it the distinctive sport division of Chrysler, similar to Scion for Toyota and I think they really need to completely scrap and start from scratch on all current Chrysler models, inside and outside

    so what do you think Ford, GM, and Chrysler need to do to continue changing their companies for the better?? do you think Chrysler is even going to make it at all??

    the changes and positive sales profit coming out of GM since bankruptcy puts them in the middle of the big three in regards to improvement and I think most of their restructuring changes were good; getting rid of Saab and Saturn was smart; personally, I think they would have been better to get rid of Buick, because they already have a great luxury line in Cadillac, and kept Pontiac, and slimmed down the Pontiac line to 3-4 distinctive sporty models, different from chevy and make it the sports division of GM; GMC line could lose 1 or 2 models and Chevy needs to get their butt moving and revamp busted up boring old models, namely the Impala, among other ones to match newer fresher models like the Malibu, Equinox, and Camaro!

    Ford has impressed me the most, mostly because they took very little amount of loans, compared to GM and Chrysler, and didn't have to declare bankruptcy!! in the last year, their market share has increased and their resale value rose at the end of last year for the first time in awhile so that was positive signs for them; I think what they need to still do is, either get rid of Mercury or, if they are going to keep it, make it a entirely unique division of its own with distinctive styling, perhaps a sport division, and not make it cheap copies/platforms of Ford models with just different grills/headlamps/taillights!; also, Ford needs to get their butt moving a start to revamp Lincoln because right now, Cadillac is kicking their butt, and right now Lincoln's line is bland and boring; Lincoln would probably be the last luxury line I would even consider at this point, so much work to be done there!

    so what do you guys/girls think GM, Ford, and Chrysler need to do to continue to change their companies for the better and do you even think Chrysler is going to make it at all??
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