They all need to make cars that have some room inside. They make these tanks with less passenger room than a fucking accord or maxima.

GMC is a step up from Chevy on most things like options, etc. And the trucks are awesome.

<----GMC owner.

That new Cadillac is the ballz. I couldn't believe it when I saw it; total rethink and they got it right.

Buick needs to absorb Oldsmobile. Pontiac should absorb Saturn. Chevy and GMC need to combine their best parts into one brand

Agreed. I think they should make GMC the truck and SUV line and chevrolet the car line.

Structural re-org is one step that needs to happen. You bought those companies like 60+ years ago... things *may* have changed since.

But the biggest thing I can think of that's been letting the japanese eat Ford/GM's lunch is the supplier relationship. I'll explain briefly for the uninitiated... GM's method of getting, say, a sideview mirror or a brake assembly is to haggle with various suppliers to see who they can play off of whom, in an effort to drive the cost down. It's very adversarial. You vs me. There's also a looong history of people not living up their contractual agreements, just like the steel industry. The results are cheap, inferior parts (Pontiac interior, anyone?), poor quality overall, increased warranty issues, and eventually a well-deserved reputation as lagging the japanese in quality. Oh, and their suppliers (like Delphi) are filing for bankruptcy left and right.

Honda searches for someone who's able to meet all their needs. Then they partner up with them, sharing investment overheads, as well as engineers. Then they say "you should be able to make this mirror for $39. LET'S FIGURE OUT HOW YOU CAN DO IT." That caps part is the kicker, btw. So their engineers sit around and refine the whole process until the partner supplier CAN make a quality part at the price it should be at. Together. Result: good parts, correct price, stability, and both profit. It takes more time, and more up-front $, but the results of not following this practice are now bearing painful fruit for the american side. All they know how to do is reduce costs. It's harder than that.

Awesome post, Cap'n.

yay school.

As our new publisher said when he took over a year ago; no one ever cut their way to prosperity. Cutting is a survival method that GM and Ford to a lesser extent have to use right now. At the same time, if they want to get back in the race they have to look at how they're built fundamentally, what their goal is as a company, what they're good at doing, what functions and operations they need to jettison (why does GMAC do home financing? Anyone?) and how they can get a competitive advantage in what they keep doing.

And I hate to say this because I have lots of family either in or retired from the auto industry, but they've got to find a way to re-open their ridiculous labor contracts that were secured in the mid-late 90s when the companies were flying high.

To quote someone much, muuuch more knowledgable than I, "no company has ever turned around and become profitable by cutting costs." All you do is slow the fall.

If you have ball cancer, all the bandaids in the world won't do it. Better off just cutting the ball off. Blame the guy who didn't get checkups.

I crack up when I see these almost new Chevys or Fords w/ a tailight bulb burned out (yes, I see it a lot, don't you?). I see that and think, "Where else did they cut costs?"

MMMM...subways...i'd kill for a 12 meatball su....what... oh you meant the band...nevermind