If you enjoy this web site, please show your support.

Truck Driving Jobs

Author Topic: YRC corp bailout???  (Read 1379 times)

Below 30

  • Hero Member
  • *****
  • Posts: 798
  • Video games for life.
Re: YRC corp bailout???
« Reply #15 on: May 17, 2009, 03:50:53 PM »
Actually they did for many years, up until recently.  Its was called pickups and SUV's.  It was there big money makers.  Even the imports got into the game.  As one example, who woulda thought gas prices would have risen to the levels of $2, $3, $4, and $5 dollars in such a short period of time?  Far to short for ANY manufacturer no matter what industry it maybe to change their practices.  And really as a manufacturer, do you write it off as a mere hiccup?  I sure would have when it first started.  After all it takes alot of money and time to build a new product line.  Its too bad we didnt see at the time what we know now.  And in regards to saving Detroit, the effects trickle down enormously.  When you think of all the associated industries and service providers, it is a national concern and in my opinion national security.

Bailouts are a very touchy subject.  There are always gonna be pros and cons. My .02.





I hear you, but let's look at the imports.
The imports were much later to the SUV race as you noted and yet they're holding up better than the big 3, why? Because they know how to manage their companies. They know how not to be stupid and always maintain different products for different markets. They weren't greedy and now they survive. Just because one segment gets large for a second, doesn't mean the other segments should be neglected. Big companies are getting exactly what they deserve and it will be nice to see the better managed companies rise to the top.
When skills ruled.

-30-

Hank's Truck Forum

Re: YRC corp bailout???
« Reply #15 on: May 17, 2009, 03:50:53 PM »

wbache

  • Hero Member
  • *****
  • Posts: 10579
Re: YRC corp bailout???
« Reply #16 on: May 17, 2009, 03:59:04 PM »
I hear you, but let's look at the imports.
 Probably why we don't hear much about the Tundra and Ridgeline these days. Toyota and Honda were late to the party and now the parties over.

RedStapler

  • Hero Member
  • *****
  • Posts: 3908
  • Not Sure-Camacho 2016
Re: YRC corp bailout???
« Reply #17 on: May 17, 2009, 07:12:41 PM »

Honda arrived to the light truck party late with the Ridgeline and Pilot. Toyota drank their share of the cool-aid with the 4Runner, Land Cruiser Tundra, Sequoia, Highlander and FJ Cruiser. Toyonda even pioneered the CUV "cute-ute" segment with the CR-V and RAV4; they realized people just wanted to sit up high, not actually tow or go off road.  Before the whole light truck boom pickups and SUVs were 20-25% of the market.  At the peak in 2007 they accounted for 50-55% depending on how you count some of the car based CUVs.

The 1st time the domestics were caught napping with weak or non-existent small cars in 1973 I could understand.  It is not like we have not seen this movie before.   About once a decade we have a price spike, it happened in 1981, 1991, and last summer.   

The difference is that when gas hit $5 gallon last summer Toyonda all had quality compacts and hybrids on offer. The domestics viewed small cars as something they had to make in order to avoid CAFE fines rather than a profit center. They had stale uncompetitive products in the compact category and with the partial exception of Ford did not have a single hybrid actually in showrooms. 
 




hwyhaulier

  • Hero Member
  • *****
  • Posts: 3444
Re: YRC corp bailout???
« Reply #18 on: May 18, 2009, 01:17:38 AM »
...It has taken longer for LTL but the end result is the same. Lowball operators who are willing to use their employees as ammunition in a price war have slowly but steadily eroded margins and pay...           

Red Stapler -

Or, much the same fact set that stimulated the widespread arrival of collective bargaining (i.e., unionized) work environment, dating back to the 1930s.
The some years back film, Hoffa, with Jack Nicholson and Danny DiVito, a somewhat "quick and dirty" primer on this area of labor relations.

In some other comments here, I'm having problems with some "enterprise comparative" issues. That is, the domestic auto builders have been around
here forever. Much baggage accumulated over the century, including accepted responsibilities for retirement benefits. Compare, the new arrival US
builders do not have these long time "legacy costs" built in. I'll submit it is quite the flaw of logic to state the new arrivals are better managed. Ain't the
same playing field...

...........................Vern.................

wbache

  • Hero Member
  • *****
  • Posts: 10579
Re: YRC corp bailout???
« Reply #19 on: May 18, 2009, 02:49:24 AM »
Some published reports indicate that Toyota did not make a profit on the Prius until the gas price spike when they were able to get a premium. When prices  retreated so did demand and a lot of sales have been or or being subsidized. In California hybrid sales were driven in part by the exemption that allowed single drivers to occuppy the HOV lanes on the freeway usually reserved for vehicles carrying two or persons. In other words Prius sales were driven by privilige/subsidy and the price of fuel. Toyota did make some large SUV's before they became popular but they were far outnumbered by those made by US manufacturers--We didn't call the Chevy Suburban an SUV as that wasn't part of the vocabulary but it fits in that frame of reference today and the largest selling vehicle i n the US has been the Ford 150 pickup in its various configurations.

krooser

  • Hero Member
  • *****
  • Posts: 4193
Re: YRC corp bailout???
« Reply #20 on: May 26, 2009, 09:42:12 AM »
I worked in sales for a Ford store for six years...'91 to '96.

Historically the Big 3 used small cars as a stepping stone to sell their companies larger products. You sold an Escort to a college student who would come back for a Torino after graduation and then stayed in the family and bought a Crown Vic after their career got on track.

Even the Ford Ranger was viewed, at least by my boss, as a starting point to get the buyer into an F150 sometime in the future. I reviewed lots of old film and printed materials from the 60's thru 80's from Dearborn on how to "upsell" from a small car into a large one.

The Japanese transplants came to the US in droves in the 90's because the home economy was in shambles with high unemployment, inflation and sinking sales in Japan. They came here to tap a new market and to make the profits here that they weren't making at home.

They were wined and dined by state and local government who wanted their new factories. The Japs spent millions of $$$ hring the best lobbying firms in the country to put a smiling face on their "invasion"... and it worked. With a fresh start, and no legacy costs, they set out to build the only kinds of cars they know how to buld... small cars. And they can make $$$ because there costs are lower... no legacy costs, no unions and big subsidies from the Japanese government and our own lawmakers... it was a win-win situation.

Now that the US auto industry is in the process of shedding some of it's excess capacity and costs, there may be a light at the end of the tunnel for them. They need to treat all of their products equally... large and small. They have the capabilities... what they lack is the leadership.

We will all be better off if they are sucessfull.


Hank's Truck Forum

Re: YRC corp bailout???
« Reply #20 on: May 26, 2009, 09:42:12 AM »

Truck Driving Jobs


 

Truck Driving Jobs