What do YOU think is the biggest issue that keeps the car companies unprofitable?

[Stinky The Clown]

I hear a great deal of yadda yadda yadda ..... but how about this **one** issue:

Employee Health Care Costs.

I think all the rest can be dealt with. But THIS one needs federal help.

[waiting for hope]

1. Employee health care costs have forced

many a business to change how it treats its employees - the last two companies I have worked for don't offer it, simply because they can't afford it. I am so ever thankful my husband's company is big enough that we receive it through them but that day may come when it's slashed like everything else. What about the big retirement plans for the CEO's?

[GoesTo11]

2. Legacy cost.

They made deals decades ago that they're paying for now, giving workers security in exchange for lower raises at the time. A deal's a deal, but they made these deals thinking (or at least fooling themselves - or their long term shareholders) that they wouldn't cost anything. If they still had huge market share, then they wouldn't be paying for more early retirements, pensions, job banks, etc. than they need. But when the market share dropped and dropped and dropped and ... well, it all folds in one way or another. Basically the workers own the company because what's left of its potential value added was promised to them, not the shareholders. But at this point, you gotta think the workers who effectively own the company would still rather have it as a going concern. Even if that means concessions, the market value of the company is around $1B and its commitments to retirees / workers are many times that, so they have much more to lose.

[rfranklin]

6. Which is why it seems insane for business to oppose single payer

That would level the playing field and eliminate a shitload of paperwork.

[haele]

11. Legacy costs are always an issue -

People want to know that they won't have to worry about survival after they retire, after all. Either pay them enough that they can save or invest in some sort of IRA/CD or put off the all those "right then and there" pay raises for a retirement plan that, frankly, the auto companies were hoping wouldn't cost so much due to fact the average blue-collar worker abuses his or her body so much that they didn't survive much past five years after retirement.
The companies hoped you would die around retirement age, because that's what usually happened.
The workers are making concessions and are usually happy to share the sacrifice when asked, because they want to keep their jobs. However, it's the current management model that's screwing up - they don't seem to understand the need for them to share the sacrifice, too. Hint to the upper management - you don't give yourself a bonus or raise while you're cutting the wages as a "cost cutting" measure for the books. You cut your raise or bonus alongside those who are giving their lives for your inflated salary, or you're just a common, dirty corporate vampire like the myriad of other over-privileged little piggies, sucking the life out of the company that supposedly depends on you to keep going.

Haele

[GoesTo11]

13. Not to worry

Whatever bonuses or raises upper management is giving themselves now won't last that long.

[lib2DaBone]

3. Mileage, Mileage and then there is Milage. Innovation and qualtiy.

[jakefrep]

4. When health care is the biggest cost item on a car, that's a problem.

And it certainly doesn't help that the car market in general has gone completely in the toilet.

[KG]

5. an arrogant, hidebound, overpaid and overbloated upper management structure.

[GoesTo11]

8. Not to defend too much, but as business execs go, they're not bad

Less arrogant and overpaid than in a lot of other industries. But pretty insular - it's hard to see the whole world from Detroit.

[AllentownJake]

12. My friend who worked

there said it was too bureaucratic and top heavy. It wasn't necessarily the Executive Suite however there were way too many levels of management. That was just his opinion and he was on the 2nd lowest tier of management.

[spanone]

7. suburban utility vehicles

[TBF]

9. Health care #1 - should be nationalized - also..

who can afford to buy a new car? Especially if you're not sure you'll have a job... we're not making any big purchases right now.

[AllentownJake]

10. Healthcare cost are a problem

However, GM has been mismanaged for years. They invested in big heavy gas guzzling vehicles. They are slow with new designs or responding to the market. They probably have a top notch design department but I doubt that the good ideas are getting past the VPs desk.

Also from my friend who used to work at GM, GM is very top heavy. The bureaucratic management structure makes getting bills through congress look easy.

There are some problems with "legacy cost" but that's just management's attempt to blame the unions instead of taking responsibility for their awful management over the past 20 years.

[BobRossi]

14. Subsidized competition , health care cost.

If U.S. car companies could sell in China, Korea, Japan, and Europe as freely as car companies from those countries sell here it would be a very different ball game.
Dollar for dollar the best cars in the world are built by American car companies.

[greendog]

15. The systematic destruction of the American middle class.

You're not going to make much money if your intended customers can't afford your product.

[Chemical Bill]

20. Bing, bing, bing, we have a winner!!! n/t

[readmoreoften]

16. Ain't nobody got no money for cars. /nt

[leftofthedial]

17. universal, not-for-profit single-payer health care would be the single best thing

the federal government could do to end this economic crisis.

It won't save capitalism from itself, but it will stop the carnage.

But the biggest problem car makers face is that they are trying to sell expensive obsolete technology to people with no money to spend on anything.

[Lint Head]

18. For the quality you get the price is too high.

Car are built to eventually fall apart. (Built in obsolescence.)
Plus the car insurance companies are totally unfair with their rates.

Insurance companies have the biggest buildings in major cities. How do you think they are financed,

[HiFructosePronSyrup]

19. Planned obsolesence.

And decades of abusing it.