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Three Problems of the Big 3

Bloomberg.com: Worldwide:

“General Motors Corp., Ford Motor Co. and Chrysler LLC chief executive officers, who have urged the government to provide billions of dollars of aid, will meet with House Speaker Nancy Pelosi today in Washington, … United Auto Workers President Ronald Gettelfinger is also scheduled to participate in the meeting with Pelosi, … people who discussed the meeting requested anonymity because it hasn’t been announced publicly.

U.S. auto sales slumped last month to the lowest level since 1983 and Detroit-based GM has posted almost $70 billion in losses since the end of 2004. President-elect Barack Obama said last week he plans to work with the industry to make it more competitive.”

Three problems of the Big 3

The US auto industry has three major problems – retirement benefits, which the UAW will do nothing about. Second, is the development cost, which the auto companies are doing very little about. Third, the quality of the vehicles, about which the consumers can do very little.

Money has very little to do with this. The problems have remained constant – and the Big Three + UAW have danced around these problems.

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