http://www.forbes.com/2007/05/23/det...rtner=yahootix

Wow, what a depressing read!!!

 

Nice, death watch for the ......... United States of America!

 

Are things as doom and gloom as the article states?

 

Detroit isnt dead. The auto market has changed and the domestic brands are having some issues keeping up but they are not dead by any means.

 

The city of Detroit itself is pretty bad. No money, crumbling infrastructure, high crime, high taxes. Potential solutions are outside the scope of this forum, I think.

In many parts of the U.S. (especially here in California), imported cars, such as Volkswagen, Mini, BMW, Toyota, Honda, are assumed to be higher quality than Ford, GM, and Chrysler products. The European products actually aren't higher quality, and they have a cost disadvantage, so they really aren't a threat. Toyota and Honda generally are high quality, and they also have a cost advantage, due to defined-contribution retirement systems, more flexible work rules, somewhat lower salaries, etc. Now, combine a cost advantage with a product for which people will pay a price premium.

I.e. it costs GM and Ford more to make a car that people will pay less for.

Now, add in the CO2/gas mileage standards that are being promulgated, while realizing that the Big 3 have traditionally made the most money on large vehicles and lost money on small vehicles.

There is a rough patch ahead.

This is why Detroit needs to hit the competition where they aren't, while also continuing to fight head to head, and will need all the help it can get from its Australian, European, and Asian groups.

 

That's not entirely false, but I'm wondering how a guy from Santa Clara is getting his information.

I don't think Detroit is much different than any large city with significant suburban sprawl. I'm sure there are exceptions, and there's no need to point them out -- but almost every city like that is going to have an old/abandoned/run-down area somewhere with higher crime. Go ahead, try to tell me none of your big cities have that problem. NYC? Chicago? Atlanta? Phoenix?

 

I looked at the date of this article expecting it to be 5/23/2006, not 2007.

He's saying the same things people said a year ago about GM going bankrupt then he makes a daring prediction that GM will try to renegotiate contracts, close plants and change benefits. I guess he doesn't realize these are already happening?

Maybe his next article will be predicting the Power Ball results from 2005.

 

Reads like your typical negative Detroit/US automaker article. This is standard fare. As for the city itself, we the citizens of Detroit and its outlying areas have been hearing the same stuff for decades. Unfortunately I can't see our fortunes turning anytime soon thanks to the re-election of an all but proven crook. "Hip-Hop Mayor" indeed.

Back to cars, we all know the reasons why the Domestics are hurting. They've been well documented in a thousand different places. This article doesn't state anything we didn't know, it's just a little more blunt.

GM will be fine if they can continue to get their costs under control (this includes getting concessions from the UAW) and if they keep improving on their product. Every release needs to be a quality and marketing home run. Cars like the '08 CTS and Malibu, Camaro and G8 are prime examples. There is no room for clunkers anymore. This is the only way to improve public perception.

 

Dramatic articles sell magazines.

 

 

I was born and raised in Detroit, so my instinct is to defend it, but I really can't. I'm in living in Atlanta at school and the difference is night and day. Where I go to school is by most people's definitions pretty run down, but you can still find 24 hour gas stations, national brand supermarkets and thriving small businesses like take out places or mom and pop video stores. I'm from a nice area with very expensive houses, thats a mile from woodward and five minutes from downtown and the new center, but you will find nary a branded store for miles...The only area in Atlanta thats completely desolate and actually reminds me of Detroit is Bankhead, and even thats nowhere near on the scale as detroit.

 

Safest thing to do would be to evacuate the city and nuke it from orbit.

 

That's the only way to be sure.

 

I've visited a number of times. I've been around various parts of the city. I've read articles on the Detroit News website.

I've been to all four of those; they are different from Detroit, and I'll leave it at that.

I like visiting Detroit. The Rencen has some neat exhibits. The Automotive History collection at the downtown library has some great info on cars of the past and present. It's a great place for a carnut to visit.

 

Here's another spin from Forbes although not quite as battering as the first article...

http://www.gminsidenews.com/forums/s...ad.php?t=49876