Peter Valdes-Dapena is not what you’d call the sharpest automotive journalist on the blog. In fact, you could say that CNNMoney’s Automotive Editor has about as much killer instinct as Codium setchelli. In case you’re not up on your algae, this is the scribe who wrote a piece entitled “Why we need big hybrid SUVs.” So, now that Forbes Autos is out of the top ten slide show biz– in fact, out of biz entirely– Valdes-Dapena has decided to fill the gap. “What’s really killing Detroit” You want insight? We’ll give you insight! V-D identifies six issues confronting Detroit and gives six reasons why it’s no big friggin’ deal (i.e. why we shouldn’t let Motown’s meltdown get in the way of bailout billions). You got your SUV addiction (“They remain an important market segment for domestic automakers”); lack of small cars (“GM will also begin selling the new Chevrolet Cruze here in 2010”); lousy quality (“There’s no doubt that quality will continue to improve”); lack of hybrids (“GM now offers as more [sic] hybrid models – seven in all – than Toyota, which offers six”); union workers (“Pay isn’t the problem, it’s benefits. But the UAW has made significant concessions”); and your fat executive paychecks (“If big automakers do want help from Uncle Sam, they may have to agree to cuts in compensation). So what’s really killing Detroit? Photo captions like this: “GM CEO Rick Wagoner leads a company in trouble, but could anyone else have done better?” I know Pacific sea slugs that qualify.
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How do you happen to know Pacific sea slugs?
On a more serious note, what I want to see is a viable business case for any of these manufacturers. They were struggling to break even with U.S. sales over 16 million. Under what scenario are they viable at 12 million?
Many people assume the car market will bounce back by 2010. But why must it? If cars have truly become more reliable, they might not need to be traded as often as they have been, and certainly shouldn’t have to go to the crusher as soon.
Has anyone laid out a business case that holds water?
You got your SUV addiction (”They remain an important market segment for domestic automakers”)
Really? Important for the automakers, just not important to the customers.
lack of small cars (”GM will also begin selling the new Chevrolet Cruze here in 2010″)
Late to the party again…..will it actually arrive? Why not now if it exists elsewhere? How hard is it to put a car on a train or a boat?
lousy quality (”There’s no doubt that quality will continue to improve”)
In other words, quality cannot possibly be any worse that it is right now.
lack of hybrids (”GM now offers as more [sic] hybrid models – seven in all – than Toyota, which offers six”)
“Offers” and “sells” are two entirely different things.
union workers (”Pay isn’t the problem, it’s benefits. But the UAW has made significant concessions”)
Aren’t benefits really just pay in disguise?
fat executive paychecks (”If big automakers do want help from Uncle Sam, they may have to agree to cuts in compensation)
Let’s strangle upper management from any real talent. How many of the cuurent execs will leave if they get a paycut? What exec worth his salt is going to work for less than market? Why punish Mullaly because RR and Boot’em Bob are inept.
Michael: If these guys had viable business cases (eg Toyota, Honda, etc) they would not be in the condition they are. Let them die and reduce the surplus population.
One more thing…..”Bridge Loan to Nowhere”…..I coined it here.
Is that the real Tonya Harding, or just a wannabee lookalike?
Test
A lot of sea slugs are also better looking than Rabid Rick. And banana slugs–much better looking.
Robert, I think you’re being a little bit too hard on Valdes-Dapena. He is actually pretty insightful.
JUST KIDDING!!!
DO NOT mess with VMI cheerleaders!
http://www.roanoke.com/news/roanoke/wb/92103
Michael, you have a good point about people keeping cars longer. My two cars are a 96 Miata and a 97 S-10. Just some loving care and routine maintenance for the Miata and a few home repairs (brakes, ball joints, tie rods, U-joints) for the S-10. Still way less expensive than new, especially on the insurance side. Right now, I wouldn’t buy new for anything. I know the ins and outs of both cars and can easily repair anything that goes wrong, given a little time and a copy of Chilton’s. Even my impending clutch replacements (both are around 100K miles) are still cheap compared the headaches and unknowns of buying new. Car companies must hate tightwad, weekend mechanics like me.
I think it’s spelled “Pom-pons”. Or “Pon-poms”, I can’t remember which.