Motor Industry must reinvent the wheel

The Wheel - such an old design???

Whilst no one anticipated the global economic crisis and the devastating impact this would have, I find myself asking; Why are we so surprised by the woes of the car makers of the world?

General Motors is on the brink of collapse.  They’ve let Saab file for bankruptcy protection and Opel are looking for new owners / investors.  But why are we surprised?  Saab hasn’t returned a profit in over a decade of GM ownership!  GM’s American factories are weighed down by the political burden of the unions and thus their operating costs are high.  Moreover, these same factories work to archaic practices or, at best, are half way to imitating their Japanese counterparts.

Heads of Big 3 think they can!

Big 3 Present Business Plans to Congress

In a desperate attempt to secure an emergency $31 billion bail out from the US taxpayer, the heads of America’s three biggest car companies have offered to give up their personal incomes.  According to the Times, Alan Mulally (Ford), Rick Wagoner (General Motors) and Robert Nardelli (Chrysler) “have offered to cut their annual pay to $1 (67p) and to sell their company jets.”

Ford, GM & Chrysler Call For Handout

The State of the US Car Giants

The so called “Big 3″ car manufacturers are “losing money at such an alarming rate that at least one may be bankrupt by Christmas” reports the Times today.  The credit crunch has taken its toll, and the manufacturers’ inability to steer with the demand for economical cars rather than gas guzzling MPVs and SUVs now means they are begging for their survival.

Bankruptcy - Not an Option

GM - Glum Mood?

General Motors, owners of Chevrolet, Daewoo, Vauxhall and Saab to name a few, have reportedly called “for coordinated federal action to assist the ailing U.S. automobile industry” according to Reuters.  This is of course in response to the slump in markets and credit markets.  The US car giant insists that bankruptcy is not an option asserting that such action “would not benefit our customers, our dealers or our employees.”