[RGSchmitt]

Hi all -

The entire situation with the "Big Three" is fairly complex, with
enough bad guys to go around.

Over the last 20+ years, their reputation for "quality" has been poor
in the opinion of most US buyers. I think this hasn't been a correct
perception for as much as 10 years. So their market share has
declined. Later, company managers thought they had a winning
strategy in producing mostly (large) SUVs and trucks and this worked
for a while. US buyers ate this up and also got board with the
horsepower craze - if it didn't have at least 250 hp, the car/truck
was only fit for poor students or secretaries. If the car/truck
didn't grow 2" in every direction with each model revision and add
200 lbs, it was a loser. Sort of matched the weight & girth growth
of the population.

Unions and their retirees got more each contract renewal. Managers
carved out large salaries and bonuses for themselves. They never
developed a "Plan B" for producing interesting, right-sized cars or
trucks. They did nothing to change the "large, high HP" perceptions
as being essential to a "good car". And they larded up everything
with DVD players, GPS, refrigerators (!), etc.

Perhaps the major failing is the lack of any nimble ability to shift
direction - when faced with gas prices that doubled in a few months
and sales that were falling off a cliff, I read nothing about new
products that would be available in less than "years". Where was
any sense of crisis?

I've read two biographies of Walter P. Chrysler and recommend them
highly. He had the working experience and management skills to build
a great company.

It would be tragic to see his namesake company disappear, but there's
probably no one at Chrysler now worthy enough to shine his
shoes. Same at Ford and GM.

Bob
(2 American cars in the driveway)