Monday, December 1, 2008

Distilling the Big 3 to 1

I don't agree with Naughton's idea of combining the three largest American car companies into one. This new change will lose millions of jobs. Nuaghton quotes " In 2002, billionaire investor Wilbur Ross agreed to buy up bankrupt LTV Steel, setting off a merger frenzy that saw 17 companies shrink down to three, while financial results reversed from a $1.1 billion loss in 2003 to a $6.6 billion profit in 2004. Ross used the bankruptcy courts to renegotiate labor contracts and hire back a fraction of the workers." I believe this example will work if we combine the companies, but I also believe it will work if they just stopped making so many cars. I believe they should be forced to restructure. The cars that haven't been selling and don't get good gas mileage, shouldn't be made anymore. I believe if we kept all the cars that still sell and are economic friendly then we can keep GM, Ford, and Chrysler separate and still have their names on their cars. Just make each company smaller instead of combining them. They don't have to stop making them all together just make less of them. If they sold every single car they made they would make a profit no matter how many cars they made. If they make too many cars then they'll definitely lose money. And if decreasing the number of vehicles they make doesn't work then maybe we should combine them. If they would not make and put in the car lots 2009 cars in July of 2008, they would have more room for other cars that aren't being sold. They just need to slow down the car making process. Also, American models need to make cars that are economic friendly and get good gas mileage. Naughton state's that it will take until 2011 to match foreign competition. That reason is only because gas prices increased and Toyota's that aren't even hybrid can get around 35 mpg. You wouldn't be able to find that in a Ford. Toyota's also make their cars more sturdy in the inside and not so breakable. Americans need to stop making cars so quickly and redesign them to be more sturdier, nicer cars with good mpg. They should have hybrids, but they should also have just regular cars that get good mpg without having to spend 50,000 dollars on them. Or I guess they could make cars that are designed to break down right after your 5 year warranty is up so people will be forced to buy new cars. Anyways I don't believe the economy will respond in a positive way if all three brands are combined to one. How are people who hate Fords and love Chevy's supposed to buy a car when the names combine? I personally believe that they should make fewer, more dependable cars, and stop making all the cars that haven't sold in the last 2 years.

No comments: