10 Cars That Sank Detroit

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No Life Cycle Cost

I would have to second JW that the Chevy Vega was the start for GM. I'm glad he brought it up cause I couldn't remember the name.

This car had aluminum cylinder walls impregnated with something.

When the something wore off, or was washed off by coolant when the head gasket blew (a common occurrence because of the aluminum), the walls would score and oil consumption soared. The only fix was a rebuild.

Sorry to say that Detroit engineering is pitiful compared to Japan. This is probably more the fault of management than the engineers themselves.

I buy new and drive forever. This only works with Honda and Toyota.

tiny tim of AZ @ Nov 06, 2009 12:46:25 PM

Pay

What Killed Detroit?

How many cars do they have to sell just to pay the Executives and layers of MBAs.

Labor is pretty much the same for the workers that actually do the work at Japanese companies in North America.

And who promotes lame products that do not have a chance. focus on good design. not the cheapest design. why does everone want a BMW ?

Zed of PA @ Aug 24, 2009 20:14:44 PM

WHERE IS IT BUILT

come on Ford Mustang 65 percent Domestic Content:http://www.allbusiness.com/government/government-bodies-offices-us-federal-government/10586272-1.html

ZED of PA @ Aug 24, 2009 20:09:11 PM

Pathetic Engineering - Executive Apathy

I am a used car dealer. (Hi Joe). My automotive sins are many after forty years in the business. I have sold a lot of junk over the years and I liked Mr. Newman's article. However, huge automotive concerns do not rise or fail because of a few bad models.

It is my contention that General Motors path to bankruptcy began in 1971 with the introduction of the Vega. This entry level car was plauged with a body that would rust out even in the Arizona desert and an engine that consumed more oil than gasoline. Much worse than the Corvair because so damned many Vega's were built!

Alfred P. Sloan, the finest executive to ever come out of the automobile industy believed in starting a young buyer with a inexpensive Chevrolet and upgrading them as they aged into the Caddy: simple. Inspire brand loyalty (customer for life theory) and sell them nothing but GM cars over the life cylcle of the consumer.

The Chevy Vega literally murdered Mr. Sloan's vision of General Motors. Remember the Vega WAS that entry level car and it was a piece of junk. After being screwed on their Vega, the entry level consumer began buying Toyota and Nissan. These Japanese competitors (unpaid efficiency experts) studied Mr. Sloan's tactics and like everything copied the original while adding additional value. As Toyota and Nissan grabbed up market share, they wisely introduced the Lexux and Infinity as their customers aged and became more prosperous. The baby boomers were the largest generation if one tracks population trends and demographics. Unfortunately, they were the intended customer/victim at the entry level point for General Motors.

Similar arguments can be directed towards Chrysler and Ford.

Simply put the executives put quarterly bonus expectations ahead of Mr. Sloan's policies and destroyed the modern model for an integrated corporate management premise.

Yes, confession is good for the soul. Upon reflection of my automotive sins I can at least say I was never a "corporate executive".

Joe Welnack of FL @ Aug 15, 2009 16:37:24 PM

Sorry ! None of those cars sank Detroit

As the rest of the world, especially Asia has become industrialized, their cheaper overall manufacturing costs (labor, health and other insurances ,benifits, non-union, low litigation environment, etc...) has made America overall non-competitive. Companies worldwide moved their factories to these countries for very obvious reasons.

Companies are NOT established for nationalism nor patriotism.

They are established for PROFIT ! In business, MONEY is

above GOD.

This is the very essence of capitalism.

Look around. What is being "Made in America" today?

and we wonder why we don't have jobs? The housing bubble just tipped the balace off but there's a bigger problem behind.

Simply, we have lost our manufacturing competitiveness.

Blame it on Bush or Obama, Democrats and Republicans they don't seem to see the problem.

If America can beat the overall manufacturing cost of its

global competitor, companies and jobs will come back.

Unfortunately, this is unlikely to happen.

It's not just Detroit that is sinking because of the cars they made, it's the whole American economy.

Alden Gajo, MD of CA @ Aug 14, 2009 03:23:06 AM