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Does Detroit Make Cars Americans Want?

On more than a few occasions, numerous people recently have accused Detroit of building cars Americans don’t want. People are blaming Detroit’s choice in car production for their desperate position.

Bullocks!

There are many reasons the Detroit Big-Three are failing. However, they have build exactly what Americans WANT. Note the word choice. WANT. Americans have a love affair with large trucks and fast cars. Cars like the Ford F-150, the Ford Mustang, Cadillac Escalade and Chevrolet Corvette are the American cars people WANT. They are stylish, reliable, fast and are enjoyable cars to be in. In the past 15 years the American car companies have realized they need to compete on a reliability level with Japanese automakers becuase that’s what American’s started to value in a way they never had before. However, as gas prices started to rise and the economy started to take a nose-dive, Ford, Chevy and Dodge started to build cars like the Chevy Cobalt and Ford Fusion hybrid get over 30MPH and are as reliable as their Japanese counterparts. Even their styling is starting to come along. So, why is GM, Ford and Chrysler are in such dire straits?

The simple answer is labor unions and the huge liability of unions and their pensioning system. Almost $1500 from every car goes to pay for liabilities for employees that no longer produce cars. The complex answer has to do with generally poor judgement about labor contracts and leveraging credit beyond what was reasonable for an auto manufacturer. Poor mangement decisions from a group of people who thought the car business could continue this unlimited growth have put the companies in a bad position. So, what do you think? Do American car companies make cars people want? Am I totally wrong?

Is Detroit Building Cars American's Want?

               

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  • Rose

    Its very difficult to say what is right & what is wrong it changes periodically.

    Regards,

    Rose.

  • Mike

    Automakers build what they know will sale and make a profit. The recent supposed energy crisis is short lived, i for one dotn see the viability in a more expensive unreliable technology as a an eletric car.

  • Ford definitely is building cars that Americans want and Chevrolet and Chrysler are not far behind. The American car manufacturers have had some competitive issues holding them back as all 3 compete pretty successfully overseas. Look for a comeback here in the US.