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This time?
Why America's automakers fell behind
A Toyota Motor Corp. worker kneels down to check a Lexus at the Japanese automaker's flagship production line for luxury Lexus models in Tahara, central Japan. KOJI SASAHARA/Associated Press file
By MIKE JONES Associate Editor
Published:
1/11/2009 2:43 AM
Last Modified: 1/11/2009 2:58 AM
While the Big Three auto makers are figuring out what to do with their millions of dollars in bailout money, the folks over at Toyota have made it clear, again, why American auto makers have fallen behind and continue to fall behind their Japanese counterparts.
While watching football bowl games the last two or three weeks, I saw numerous commercials for the new Dodge Ram pickup. It had the usual sales pitches, it's tough, it's powerful, etc. But the new Dodge pickup truck also has another innovative feature: The wall around the bed doubles as a tool box.
It is so long that you can get a few fishing poles in there. And it's watertight. And it locks. And it doesn't take up any bed space.
This is a great idea: Finding a use for unused space and not adding any weight to the vehicle. The new wall space also is much more secure than those old add-on tool boxes. Now you don't have to worry about theft or rust or a tool box that doesn't match your pickemup truck. So, how's that gasoline mileage? About the same as it has been for a V-8 truck. Not great.
Meanwhile, over in Japan, Toyota is working on a solar powered vehicle. Toyota hasn't announced any details yet and stresses that such a vehicle is a few years away, but it is working on one.
This is the same company that brought us the Prius, probably the best-selling of the hybrid electric cars. Toyota also has a hybrid Camry and a hybrid SUV.
Honda is doing fascinating work with hybrid and hydrogen-powered
vehicles and already has the hydrogen model for sale in California. Gov. Arnold Schwarzenegger has signed off on the deal.
Renault, of France, and Nissan have partnered with a U.S. company, Better Place, to form an electric car network. Under that plan drivers would either lease or buy a car and purchase electricity much like we buy cell phone minutes now. This plan will be tested in Hawaii and deals have been made with Israel, Australia, the San Francisco Bay Area and Denmark.
By the way, General Motors Corp. turned down the proposal.
The best U.S. auto makers have done is some experimentation into electric and buying into the dubious and wasteful corn-to-fuel vehicles technology. They have some hybrids on the market now but they are still behind the Japanese.
Anyone got a guess as to why the American industry is in such deep trouble? It's not like the worldwide fuel shortage is a big surprise. Anyone over at GM or Ford Motor Co. or Chrysler LLC remember the 1970s?
The Japanese auto makers got a strong foothold in the U.S. during those days of gasoline rationing. Their cars were small and sort of goofy looking, sure, but they got good mileage and they were dependable.
Just when it looked as if the U.S. industry might get it, the domestic oil boom hit, gasoline got cheap and everyone wanted a pickup or one of those new SUVs. The mascot for the Big Three should have been Mad magazine's Alfred E. Newman, "What, me worry?"
This country passed up a chance to take the lead in alternate fuels. We idled and guzzled while Japan whizzed by in the fast lane.
Are U.S. auto makers brain dead when it comes to innovation? Of course not. The tool box in the wall is a good idea. Imagine if that tool box was on a hybrid truck. All three auto makers have come with some good ideas for their new lines. But new body styles, and tool boxes will not solve the problem. And all three offer some hybrids. But they came late to the party.
The Toyota solar vehicle might not be a good idea. But it might be or it might spark a better plan. The point is, Toyota is pushing the proverbial envelope when it comes to alternate fuel vehicles.
The Big Three have the brains. They have the manpower. Now they have some money. Do they have the leadership? Will they use the money correctly or will they continue to stand by and allow the Japanese auto makers to win this race without a challenge?
Many Japanese cars are built in the U.S. No doubt, there are many American engineers and scientists working on the future of those vehicles.
The U.S. relies on its domestic auto industry for more than simply jobs in Detroit. Local dealerships have always been good corporate citizens. Local dealerships, especially in the smaller towns, can be the lifeblood of the city. The industry and all that it spawns are too important to die.
This time, however, the U.S. industry must not squander an opportunity. But the price of gasoline is down again. Will American consumers and auto makers focus on the future or continue their wasteful ways of immediate gratification?
Mike Jones, 581-8332
mike.jones@tulsaworld.com
By MIKE JONES Associate Editor
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lobeckman
, Tulsa (1/11/2009 10:39:41 AM)
We can expect a lot of this bail out money to end up in other countries. GM and all the rest of the "once big three" build many of their cars in places such as Mexico and Canada. Mr. Jones fails to mention this fact in his editorial. And GM sells cars made in exotic Korea! And they buy drive trains from Honda! All because they lack the ability to design and build good stuff. As the head guy at GM to Congress one time; "We're not in business to make cars...we're in business to make money.
Report Comment
Dr. Strangelove
, Tulsa (1/11/2009 10:47:23 AM)
Good point lobeckman- AutoWeek has a great article this week that discloses the domestic content of all vehicles sold in the U.S. The highest was the Ford Crown Vic at 90%. Guess what- it's built in Canada. Toyota Sienna is 85% domestic content and it's built in Indiana. Amazing
Report Comment
HighTop
, (1/11/2009 3:05:02 PM)
It's real simple. Broadly speaking, if it ends in a vowel, it's foreign. An import. The profits go home where currencies continue to be manipulated, markets remain essentially closed to American car manufacturers, and retirement pensions and medical care is the government's responsiblilty. It's the culture.
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Polar Bear
, (1/11/2009 3:17:20 PM)
If people heard 24/7 about the causes and effects of climate change/global warming as often as they are bombarded with those mindless,horrible truck ads we might be able to build a sustainable society before it is too late to save ourselves from corporate greed.Where are the bike lanes??
Report Comment
HighTop
, (1/11/2009 4:22:16 PM)
Mr. Jones,
More pretty pictures dominate your dated opinion than recent domestic car manufacturer developments. True, the Big 3 have issues, much of it a product of 100 years of business legacy and poor management decisions.
I'll address some items you discuss. Pickups - the best mpg trucks are Ford / GM, 21 mpg highway. Toyota has stopped production of their trucks for 90 days - at their San Antonio truck plant, which was recently built for about a billion dollars over budget. Welcome to the truck market, Toyota. Kudos to them when they can get a solar powered truck to haul lumber while pulling a trailer - all the while taking the abuse truck drivers notoriously shovel-feed their rigs.
Ford also has a hybrid SUV, Mr. Jones. They have had the hybrid Escape for years. Ford is also introducing this quarter, a hybrid Fusion and Milan vehicle which will get 41 mpg city. An added bonus, it looks like a car.
American manufacturers are also working on hydrogen and various other battery type vehicles in their research. Much of the "way out there" research of hydrogen cars is on a small scale for-government-release-only and not near ready for high manufacturing volumes. You see, it is still extremely expensive and the technology cannot be currently mass produced profitably or pass government safety regulations.
California has signed off on the above and can't wait to get the hydrogen units. We will be force-fed many more California ideas very soon, Mr. Jones.
Partnering with other companies for an electric car network. Not sure about this, but I do know the American car manufacturers have joined together with the U.S. government to fund research in bringing fuel saving technologies to market. It's an attempt to catch up with the Asians and their government who have been partnered for years.
Ford is doubling their hybrid offerings this year. Ford has been pumping $12-14 billion dollars worth of R&D into their product-led recovery for several years now, much of which is just now beginning to come to market. Ford has taken the approach of improving gas mileage in the short term, mechanically and aerodynamically, while developing improvements in their hybrids/alternate fuel and second generation battery technologies. Every vehicle Ford introduces has the best-in-its-class fuel economy - it started with the '08 Flex, the new '09 F150 and will continue with the Fusion/Milan and Ford's Eco-Boost engines.
I don't believe the future is near as dim for GM and certainly Ford, as some believe. I do not hold the same attitude, however, for Chrysler.
That said, change is coming and actually has been taking place for nearly 10 years in Oklahoma concerning the car industry. The GM plant in OKC is gone, Oklahoma employees who used to work for the Big 3 have been drastically cut - continually, and Ford dealerships in the Tulsa area have been thinned.
The free market system is working in the car industry, foreign and domestic, and is felt by many, trickling down to all, including local TV stations and newspapers.
"This time"? Perhaps, Mr. Jones. A bit of research might suggest, "American Time!"
Report Comment
moogle
, (1/11/2009 8:14:43 PM)
The problems with the big three are much more basic than lack of innovation: Lousy product and lousy service. A few examples.
Turbo-Hydramatic 200 transmission. Complete garbage that cost many ex-GM (permanent EX-GM) owners a lot of money.
CD4E transmission used by Ford in the Probe and Mazda 626, maybe others, for at least 7 years from around 94 to 01 (give or take) even though it was known to fail by somewhere around 60K to 70K miles. About 3 grand to get it replaced. It cost many permanent ex-Ford owners a lot of money.
The GM 231 cu. in. V6 engine. Inadequate oil circulation. Figure on an early rebuild if a head gasket doesn't blow first. It cost many permanent ex-GM owners a lot of money.
I have a 79 pontiac sitting in the drive that needs to be hauled off to the scrap yard (or somebody take it and restore it). The turn signals literally fell off of it. The headliner had completely fallen out of it by about 60K miles. It's a four door. The back windows do not, and were not made, to roll down. With about 150K miles on it, it's on its third engine. I decided to stop patching it up when the transmission (TH350) died.
Even though that 79 is a litany of cut corners and bad engineering, word has it that Big Three autos got worse throughout the 80s. Myriad are the Big Three autos with door handles and various other interior parts that have fallen off. Upholstery that quickly turned to tattered rags.
The problems faced by the Big Three can be summed up in one word: capitalism. If your competitor builds a superior product and offers superior customer service for the same price or less, then your competitor will eventually put you out of business.
Maybe the Big Three have improved their quality. I wouldn't know. I don't need to know. I've found other brands with which I have been happy and plan to stay with as long as they give me no reason to change. Innovation is nice, I suppose, but not getting ripped off is even better.
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52favoriteteacher
, WASHBURN, MO (1/12/2009 1:44:37 AM)
Lousy product and lousy service.
Well said moogle
Bailout dollars are not the answer
Hydrogen power is a very good alternative.
My nephew has a hydrogen boost on his truck...
helps on fuel mileage
Report Comment
What in the World!
, Tulsa, OK (1/13/2009 6:58:33 AM)
Excellent points Mike!You are 110% correct! The early bird gets the worm but the second mouse gets the cheese! LOL!
Report Comment
senor notas
, Tulsa (1/13/2009 2:49:12 PM)
How do you spell UAW? It's the unions. Get rid of them!!
Report Comment
H_Harl
, (1/13/2009 5:46:03 PM)
well, just for the record, i drive a ford f150 with 205,000 miles on it, never a rebuild never any major work. still runs super strong. uses no oil and doesn't smoke. and gets about 21 miles/gallon. i've had several other fords and gm vehicles that have been just as reliable. i'll stick with them.
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