Welcome To Canuckistan

Where we’re very polite (even when we’re ranting about things that irritate us)

My thoughts on the auto companies

with one comment

I honestly cannot believe that there are people out there who can say that we should let one or more of Ford, GM, & Chrysler fail ( I say “we” because the Canadian government as well as some of the provincial governments here are considering offering some assistance to the Canadian arms of the corporations). I’m not going to go on and on about how important these three companies are to national economies or psyches or security (others have done a much better job discussing those matters than I could).

All I want to say is that, if there is a bailout, or a loan, or a loan guarantee, I would like very much to see some conditions attached to it. First and most importantly, GM & Ford should be required to trim their lineups. I’ve been saying for years that they make too many cars under too many different brands. To make matters worse, so many of the models are frighteningly similar to one another. I don’t understand the need to keep a brand around just because it’s been around for 75 years (they got rid of Oldsmobile, didn’t they?). If your current business model (manufacturing 50+ different models under half a dozen brands) is what brought the company to the brink of ruin, then perhaps it’s time to rethink that strategy. 

Here’s a little chart I put together (I Know it’s a little crude – I wanted to get it done and write this post) comparing the number of vehicles in the lineups of the Big Three as well as a few other large manufacturers (I know Subaru isn’t enormous like the others, but I like that they have just a handful of models – plus my sweetie drives a Subaru and I’m quite a fan of the car). Notice that 2 of the companies make a far larger number of vehicles than the others? Notice also that those two companies are the ones most in danger of going out of business?

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Written by The Canuck

November 18, 2008 at 1:12 pm

Posted in Uncategorized

One Response

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  1. Nice analysis, my friend. I’m quite fond of Subaru as well, but GM cars come with massive discounts, which is why we’re currently driving Chevys.

    I’ve often thought that Subaru had a very good business model… do one thing, and do it better than anyone else. Sure they’re small, but their customer loyalty is among the highest in the industry (I wish I could find numbers to prove that).

    djrakowski

    November 20, 2008 at 9:07 am


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