This is going to be one of the big stories of the year, three huge companies that employ hundreds of thousands of people are on the brink of bankruptcy. The big question is why are they on the brink and why aren't other companies asking for the same thing. I haven't heard of Honda and Toyota looking to the Japanese government for a bailout and yet they are no doubt having similar issues with sales. So what is the real problem with the American Automakers?
Some people will go on about the huge SUV's that were built instead of focusing on smaller more fuel efficient cars. Reliability issues have plagued American cars over the years as well. So are these the only issues and are they really issues anymore? First off General Motors now has some of the most fuel efficient vehicles in at least three market segments and for the last 8 years the reliability issues from what I have read are gone. I personally own a Full Size GM pickup truck, it is the most fuel efficient full size truck on the planet and after 60,000 miles I have had no issues at all with it. I am not here to tell you how great General Motors is, I am not brand loyal and as soon as someone makes a better pickup truck that is more fuel efficient and has better features than the GM I will buy that one. My point is many of these comments just aren't true.
The fact is General Motors sells more cars than every auto maker on the planet except Toyota, so the sales are pretty darn good. Selling cars in this economy as I said before is bad for everyone, the largest Lamborghini dealership on the world which happens to be in California closed its doors last month and filed for bankruptcy. The reality is people aren't buying expensive cars right now.
So if every car maker is feeling the pinch and people are still proportionally buying American cars why are these three huge auto makers on the brink of bankruptcy?
The answer is complicated but there is one area that is so clearly obvious as the main culprit. In both Canada and the United States where a large amount of American cars are built the people that work in these factories on both sides of the border are a part of unions. These unions are incredibly powerful and over the years have made it so that some of these workers are earning $90,000 a year to work on an assembly line. On top of this both the Canadian and American auto unions have managed to get their members unbelievable pension packages. These pensions allow most workers to take retirement at the age of 55 and they are paid huge percentages of their income for the rest of their lives.
This to me is one of the biggest reasons the presidents of these three companies are begging for bailout money and why you don't hear the Japanese or German car companies doing the same? Just this morning the big three went to the unions to ask if they would reduce their pay in order to make the bailout happen, their response was 'never'! Just imagine how sick these people are that they would refuse a pay cut and if they don't accept one they'll most likely be out of jobs.
The requirement for a bailout has less to do with big ugly gas guzzling and unreliable SUV's and more to do with greedy unions that don't look at the big picture!
Showing posts with label Auto and Truck. Show all posts
Showing posts with label Auto and Truck. Show all posts
It is no secret that car insurance rates are nothing less than exorbitant these days, and the price seems to be going up every day. There are many different factors which contribute to these prices. There are, in fact, a number of factors which contribute to how much you have to pay as well. Getting to know these qualifying factors is important.
After all, if you plan to drive, then you have to have car insurance no matter what. The price of car insurance can greatly differ depending on what kind of car you buy as well. It costs more to insure a sports car than it does to insure a standard sedan. Similarly, it costs more to insure a brand new car than it does to insure a used car.
Studies and surveys have even shown that it costs significantly less to insure your vehicle when it is either an older model or a used one. New cars are so expensive to insure that it borders on ridiculous. Given the current state of the economy, not many people can afford such a luxury. The premiums for newer cars can seriously do you in financially. This is because of the safety record for new cars, and even how much replacement parts for new models cost.
In fact, these factors - replacement parts, safety records, the car's power, its top speed, et cetera - are what ultimately cause a car to be place in its appropriate insurance group. Usually, you are told the category in which your car classifies when you go to buy it. That is why younger and first time drivers often ultimately purchase smaller cars. They are notoriously cheaper to insure.
A top car manufacturer recently put out a press release outlining how one of their newer models somehow made it into a cheaper insurance group. This can be attributed to that particular car's safety record and because the parts it uses are significantly more affordable. In this case, the cheaper insurance premiums also means that the people who buy and drive this car may not have to deal with the upcoming changes in road taxes.
Face it, just about everyone wants cheap car insurance. We want insurance which is affordable but effective. The good news on this front is that many insurance companies are now offering more affordable premiums. You simply need to know where to look - and which cars best qualify for cheap insurance.
That is part of the reason so many people are turning to used cars these days. Not only do they cost less to buy, but the insurance premiums are much cheaper as well. In the end, they make for a better investment. Plus, you do not run the risk of losing much money if you later want to upgrade to a newer model.
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After all, if you plan to drive, then you have to have car insurance no matter what. The price of car insurance can greatly differ depending on what kind of car you buy as well. It costs more to insure a sports car than it does to insure a standard sedan. Similarly, it costs more to insure a brand new car than it does to insure a used car.
Studies and surveys have even shown that it costs significantly less to insure your vehicle when it is either an older model or a used one. New cars are so expensive to insure that it borders on ridiculous. Given the current state of the economy, not many people can afford such a luxury. The premiums for newer cars can seriously do you in financially. This is because of the safety record for new cars, and even how much replacement parts for new models cost.
In fact, these factors - replacement parts, safety records, the car's power, its top speed, et cetera - are what ultimately cause a car to be place in its appropriate insurance group. Usually, you are told the category in which your car classifies when you go to buy it. That is why younger and first time drivers often ultimately purchase smaller cars. They are notoriously cheaper to insure.
A top car manufacturer recently put out a press release outlining how one of their newer models somehow made it into a cheaper insurance group. This can be attributed to that particular car's safety record and because the parts it uses are significantly more affordable. In this case, the cheaper insurance premiums also means that the people who buy and drive this car may not have to deal with the upcoming changes in road taxes.
Face it, just about everyone wants cheap car insurance. We want insurance which is affordable but effective. The good news on this front is that many insurance companies are now offering more affordable premiums. You simply need to know where to look - and which cars best qualify for cheap insurance.
That is part of the reason so many people are turning to used cars these days. Not only do they cost less to buy, but the insurance premiums are much cheaper as well. In the end, they make for a better investment. Plus, you do not run the risk of losing much money if you later want to upgrade to a newer model.
