Are Ford and GM doing poorly because of restrictions?

There used to be more than the three big American automotive manufacturers (Ford, Chevy, Chrysler), but not anymore. Why? Is it possible that restrictions imposed by legislature forced them out of business, wiping out the Big Three's competition? The Big Three had enough money to follow the restrictions, but did the little guys? Competition is what is supposed to lower prices and raise quality, but much of the competition disappeared. Then Toyota and Honda came, and their better cars attracted buyers, hurting GM and Ford, causing them to lose money and have to downsize. They fired workers, causing unemployment in Detroit. Could senseless restrictions be a major cause of poverty?

In the status quo, american brand of cars are no longer in control of their market in the US primarily because of competition from abroad especially the threat from japanese cars.

Restrictions, quotas, and heightening of car standards which is a result of the legislature's intervention to better environment and to better commit to the concept of free trade have done less in the weakening of GM, Ford and Chevy. If you look at relevant laws legislated by congress, protectionism still exists. It simply means that GM, Ford and other american car companies are still given ample leverages compared to their competitors like honda, mistusbishi, nisssan etc.

Since the advent to globalisation, trade became much more difficult especially for countries that have higher standard of living. (i.e. usa, eu etc.) Producing goods in the u.s. is more expensive than producing goods in china. As a matter of fact, the same good produced in china is 70% cheaper as to when its manufactured in the u.s.. Now, why is it japan, a first world can cope with the competition of cost? Japan's strategic alliance with other countries that manufactures car spare parts made it easier for japanese car companies to operate. In fact, honda has wide investment across the globe, especially in countries where costs are alot cheaper.

The bottom line is, American car companies' failures are attributed mainly to their inability to carry out an effective management of their company, especially in their domestic operation. GM motors is the second car manufacturing industry in china. While GM is weakening in the US, it flourishes in Asia.

Well, thats free trade.... globalisation. It's not really advantageous to first world countries. At times, it also causes adverse effects. That's why US is forging alliance with other countries to trully promote the true spirit of free trade, along with it is fair competition. So that at the end of the day, cars manufactured in the US will cost the same when its manufactured in China or Japan. For the meantime, we can't do nothing to substantially change the fate of america's car industries.

I think it's because it's not taboo to buy Toyota or Honda like it use to be. I remember my father back in the 80's as an industrial plastics salesperson telling me a story about one company throwing another sales rep off the property because they saw he was driving a Toyota. Now days nobody cares. It's unfortunate but true.

Contrary to the popular belief foriegn cars are not a godsend for quality like they used to be. They are problem plauged just like domestics. The difference is in how the foriegn competition has handled the problem. America has always had a problem of trying to live high off the hog and it finally hit them back in the late 70's. Foriegn imports slowly starting to take a bite out of the market share. But it took almost a decade for the big three to realize it. Now they are downsizing and cutting costs. They are trying hard to catch up. The foriegn competition mainly the japenese have proven that a quality car can be built here using americans. The have done it very effiecently and productively.
So now you have the foriegn competition doing to the big three what the big three did to thier early competition. It is survival of the fittest.

I don't feel the American automakers have their pulse of the American people for one. I haven't seen too many cars that I have been inspired to buy. I think the automakers need to make the leap and agressively approach a greener alternative and still come up with a sexy car. Even if it's a minivan it needs to be tight and have all the bells and whistles.

I love the USA but we cannot make cars- foreign cars are much better qualaiaty (unfortunatey) salary rates are much cheaper

now dont get mad but the inflated Union wages and benefit packages hurt the Big Three

No one to blame but the unions ... legalized extortion that drives prices out of sight with workers who could care less about quality.

Ford and GM do poorly because they build cars that nobody wants.

well, I think intensive competition from Japan auto-makers is one main reason. Problems also exist in the big 3 themselves.
Auto made in the US are much different from those made in Japan----As oil prices remain such high level, it is reasonable that consumers tend to buy more cost-efficient cars.
I will also put it this way, from what I know, car exports from China doubled in the last 2 years. You can imagine the fiecere competition.

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