Thursday, May 05, 2005

Shame on Detroit

More woes for Ford & G.M. announced today. The two biggest U.S. automakers' credit ratings have been downgraded to "junk." It will be interesting to see if big labor will cooperate in helping the automakers get back onto a solid (profitable) footing. I'm guessing they won't. (In fact, the UAW has rejected a request to renegotiate the health benefits program despite skyrocketing costs). I don't blame the unions for all of G.M.'s or Ford's problems. Management is responsible for more than their share. Let's face it, when you're in charge, you get the credit and the blame.

It saddens me that the big automakers are struggling so much. They should be a benchmark for other industries. With such highly paid workers, they should put out the finest quality cars on the planet. (Anecdotal evidence: My Ford Explorer has had three problems in less than a year, and the Chevy rental car I had last week was a certified piece of sh*t). Ford and G.M. should put out well-engineered and innovative marvels. I'm not a car expert or nut, but it sure seems like the Big 3 are failing miserably in each area. I guess the downgrade by Standard & Poors echoes this claim.
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