People stopped buying cars when they started losing their houses and their jobs. Not the other way around. THis isn't like some automanufacturer is driving the others into insolvency while they reap rosey profits.
Auto manufacturers were doing just fine and dandy, until the crunch.
It doesn't matter what the hell you build, if people have no job, job insecurity or limited extra purchasing power, or the banks, leasing companies etc have clawed back on risk, then vehicle sales are going to go tanking.
The cuts at other companies are coming just as deep and possibly deeper, very soon.
Maybe we forget when Korean car companies went bankrupt.
Perhaps we forget when AMC and others had their day in the sun.
But this perpetual nonsense and bullshit about trying to blame the workers is assinine.
I worked in a facility that made production for all automanufacturers as well as other non auto related industries. Yes a Tier 1 2 or 3 supplier for any of the manufacturers, be it Asian or American.
There is no difference, the responsibility that fell on the shoulders of the producer were enormous and the fines towards the supplier were significant.
People are very confused between assembly and manufacturing.
Most of the manufacturing supports exist around the assembly plants. They can be union or not. No they don't make the wages of the assemblers.
Alot of the crap in NA vehicles comes from Mexico and China and some Korean stuff is also of poor quality.
However, the Koreans like the Canadians assemble a pretty good product.
Once the Free Trade deal with Korea is completed, it is unlikely that Canadians will support our Japanese owned Canadian assembled vehicles. As the Korean product is similar to the Japanese product and will be significantly cheaper to produce in Asia.
The nonsense about the vehicles never goes away. The more environmentally friendly vehicles are not flying off the lots.
They are of good quality, do as performed, but people are not buying them in the masses that they purchase non hybrids. That could change in the future, but right now, sales stink, and will continue to stink until this economy somehow rights itself, and I am not as optimistic as Harper.
There is something very interesting on the horizon which could change the face of the auto industry.
China has alot of foreign investment to allow the building of vehicles in their country. Many of these vehicles will be for export and some for the domestic market. China still believes in their own Auto industry, (their vehicles are reknowned for poor quality), and knows that they will not have the emmissions technology required for export, nor are they as advanced in the design of the combustion engine and electronic controls.
(Maybe they stole their electronics from lucas)
However, not to be out performed, the Chinese are intend on turning a liability into an asset by becoming the largest manufacturer of electric cars within three years.
China Pushes forward on Electric Cars
The question isn't necessarily about the product, although we know that GMs decision in the 90s is haunting them today, the fact is any manufacturer can pump out the Electric and Hybrids, its just how much they are going to cost that is the question.
As long as we have unregulated and unbalanced trade with Asia, any manufacturing in Ontario let alone Auto is likely to disappear forever.
Does Canada want a manufacturing base, do we want to produce vehicles?
If so, Canada needs a better plan then flushing money down a corporate toilet or pissing into a lake to see if it will rise.
Money without investment and job guarantees is foolish.
Their is no rational reason to buy an industry two or three years or life with our money, just so they can finish relocating their operations in Mexico or China or Korea.
Keep bashing the manufacturers, keep bashing the workers, but if we do not address our trade problems, and our voluntary elimination of skilled and unskilled labour in the manufacturing sector, then this nation is doomed to be a warehouse and fast food joint, with the occassional doorknocker selling mutual funds.l