Quote:
Originally Posted by Dee8go
They'll never be able to compete until they get some relief from the pension and health benefits commitments. They're in the same boat as Social Security.
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I think their real problem is in the product offerings. It isn't quality, they've made leaps and bounds on that issue (although the perception in the marketplace has been tough to overcome). For the past 10 years profits have been driven by full-size truck derived vehicles that had comparatively low product development costs and very high profit margins, especially when they are leased. They didn't drive the profits into research or development for anything other than "more of the same". The market has turned and is demanding something else, and they don't have what the market wants.
Pension and health care benefits are a problem, there's no doubt. But Japanese and European manufacturers have proven that people will pay a premium when there is perceived value in the product. Right now there is no perceived value for a full-sized SUV with a V8 engine as a way to transport your family around the city. I think it is a market phase that has come and gone.