If the big 3 automakers raise the miles per gallon will they be in better shape?

If the big 3 automakers raise the mpg will they have a successful future?

9 Answers

  • Bub
    Lv 7
    1 decade ago
    Favorite Answer

    No, the American public has been deceived for too long.

    Did you realize that Chevy makes the Malibu and Ford

    makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial

    quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers.

    Did you realize Big Three's vehicles include the 33 mpg Malibu that beats the Accord. And for '09 Ford

    introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the

    Corolla and Chevy's Cobalt beats the Civic.

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  • 1 decade ago

    The Big Three do build the right products. Many 2009 domestic models have received many awards. In 2008, the Chevy Malibu was named North American Car of the Year, and the Cadillac CTS was Motor Trend’s 2008 Car of the Year. In 2007, the Saturn Aura and Chevy Silverado won North American Car and Truck of the year. Those awards are given and judged by automotive journalists.

    If the corporate model is not working then the Big Three would have been out of business a long time ago.

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  • 1 decade ago

    No. Contrary to common belief, the big 3 make many fuel efficient vehicles.

    One of the the big problems the American automakers have is the unions. Did you know that it cost GM's US factories over 50% more in labor costs than Toyota pays in its US factories? Also, often, if a job is not needed anymore due to advances in automation, etc, GM cannot fire the worker. They get paid big money to just sit in a room. With that in mind, how can GM and the others compete? Toyota is spending far less on labor, which allows them to spend far more on R&D, as well as charge less for their cars. Therefore it is easier for the Japanese automakers to build a good car for less money.

    If the big three were to go into bankruptcy, and thereby eliminate the unions, they could return to profitability within a few years.

    To the other answerer, automation has nothing to do with the big 3's financial problems. All the other car companies use just as much, if not more automation, and are able to function quite well. The workers at GM, etc. plants are some of the highest paid workers in the world. This is the problem.

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  • Anonymous
    1 decade ago

    Their mileage is already comparable to anyone else and in some cases better. The quality is also equal to anybody else.

    - Chevy Cobalt is rated higher than the Honda Civic and Toyota Corolla with gas engines.

    - Chevy Malibu is rated higher than the Honda Accord and Toyota Camry with gas engines.

    - Chevy Silverado, Ford, F150, & Dodge Ram are all better than the Toyota Tundra and Nissan Titan.

    - Chevy Suburban, Tahoe, & Esclade are rated higher than Toyota's full size SUV.

    - GM and Dodge are the only makers of a full hybrid SUV.

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  • 1 decade ago

    As others stated, it is not a mileage thing alone.

    It is over head that is killing them.

    While some blame the UAW, I blame automation. Current assembly lines are limited to one or two vehicles, due to automation. Before automation, many more models of cars could be built on a single assembly line. So it takes more plants to do the same amount of work.

    That coupled with the fact that robots don't buy cars compounds the problems. I have heard it claimed that for every laid off worker, the maker would loose 10 sales.

    As for the problem of retirement, retirement for the shop employee is but a drop in the bucket for the retired management types. The upper crust get thousands for the shop (UAW) employee hundreds (at least at GM).

    I also think it is a shame to try to keep those that build our cars in a status that makes them members of a third world nation, but living in one of the most affluent societies in the world if not history.

    The rich want the poor poorer and them selves richer. Such things are the seeds of social unrest.

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  • 1 decade ago

    Unfortunately for the Big 3, their financial problems are linked to something far deeper than just miles per gallon ratings of their current cars for sale (even though most of their current offerings are already very competitive with imports from a fuel economy standpoint).

    For example: American automakers are paying a staggering amount of money to "legacy costs" - taking care of all the retirees who don't work for the company any more but did in the past. I've heard estimates as high as over $2000 of every car the Big 3 sells goes straight to retiree benefits! That's killing them right now. (and I have no idea what they can do about it - you can't just take away benefits from retirees once you told them they'd be getting them...they rely on those benefits to live.)

    UAW workers also make significantly more per hour than comparable non-UAW workers at Honda and Toyota factories. How can American automakers expect to build a price-competitive product if they have to spend significantly more than the competition in labor to make the product?

    It's going to take concessions from everyone working for the Big-3 from the CEO's on down and a total shift in how they do virtually EVERYTHING if they plan to climb out of the huge hole they've dug themselves. I think that's part of why the bailout as proposed is failing - if you bail them out, they have less motivation to change their ways and not be in the same situation in 5-10 years asking for another bailout.

    Source(s): Sorry for the length.....
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  • C7S
    Lv 7
    1 decade ago

    No, they alrady make some fuel efficient cars.

    Chevy Cobalt at 36-37mpg highway.

    Chevy Silverado, Tahoe, GMC Yukon/Sierra, Cadillac Escalade all available in Hybrid models.

    Saturn Vue and Ford Escape are the most fuel efficient SUV's available. and both are offered in Hybrid.

    The problem with the Big 3 is quality and reliability and resale value.

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  • 1 decade ago

    could have done that many yrs ago its the money thing really why pay 50,000 on something that you can get for 30 big automakers just money hungry

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  • 1 decade ago

    It will make them more competetive with the Japanese industry so it won't hurt.

    I think that is a big part of their problem, they aren't keeping up with the times. They've always had a reactive business model than actually moving forward. imo

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