Monday, December 15, 2008

Change or somebody else will!

A recent article in U.S. News notes how the unions are the reason that the big 3 are failing.  Back in the 80s, I remember reading a book in one of my business classes about the Japanese work ethic, focusing on quality and automation.  Many friends that I talk to equte Toyota and Honda with cars that will last for 200K miles.  How any U.S. cars can you say the same thing?

My wife's first car was a Ford Probe, her second a Ford Explorer.  Both cars had electrical problems and we had to trade-in the Explorer due to a cracked engine block.  My last 2 cars have been Saturns, and I have been impressed with better overall quality.  One thing I noticed with Saturns is that around 100K miles the cars started drinking more oil.  The folks at the Saturn dealership told me this is normal.  Normal???  When my wife's Explorer was traded-in last year, we decided to go with a Toyota FJ Cruiser.  The SUV is of VERY high quality and I can tell it will last us many years.  Not a single problem yet, the thing is SOLID.

Toyota built a non-union Tundra plant in San Antonio.  Yes, the plant hit tough times this year with pickup sales, and decided to shut-down for 3 months.  This is the same thing any other company in America does when times get tough.  How many companies still give pensions?  American automakers apparently still do.

When I worked for EDS, I was able to take part in a high-yield GMAC Money Market that I have been using as a savings account for the past 16 years.  I called GMAC today and they reminded me that my account is not FDIC-insured, it is considered an investment.  An article from a few days ago mentions that many GM employees are tied into GMAC benefits, causing risk to GMAC, should GM go under.  I haven't yet decided what I am going to do, but I do not think I am going to wait to see if the dominoes fall or not.

http://www.usnews.com/blogs/barone/2008/12/15/who-is-at-fault-for-the-decline-of-the-big-three.html

http://www.associatedcontent.com/article/870875/toyota_plans_to_shut_san_antonio_plant.html?cat=3

http://money.cnn.com/news/newsfeeds/articles/djf500/200812121241DOWJONESDJONLINE000851_FORTUNE5.htm

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