This column by Free Press auto critic Mark Phelan originally was published on Nov. 17 and has been updated. The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists. Here are seven myths about the companies and their vehicles, and the reality in each case.
7 Myths about Detroit Automakers
BY MARK PHELAN; Detroit FREE PRESS COLUMNIST ; Dec. 5, 2008
Myth No. 1: Nobody buys their vehicles
Reality: General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of nearly 700,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota . Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year. Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.
Myth No. 2: They build unreliable junk
Reality: The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers." The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high as or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo. J.D. Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.
Myth No. 3: They build gas-guzzlers
Reality: All of the Detroit Three build midsize sedans that the Environmental Protection Agency rates at 29-33 miles per gallon on the highway. The most fuel-efficient Chevrolet Malibu gets 33 m.p.g. on the highway, 2 m.p.g. better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic. A recent study by Edmunds.com found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.
Myth No. 4: They already got a $25-billion bailout
Reality: None of that money has been lent out and may not be for more than a year. In addition, it can, by law, be used only to invest in future vehicles and technology, so it has no effect on the shortage of operating cash the companies face because of the economic slowdown that's killing them now.
Myth No. 5: GM, Ford and Chrysler are idiots for investing in pickups and SUVs
Reality: The domestics' lineup has been truck-heavy, but Toyota , Nissan, Mercedes-Benz and BMW have spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry. The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel-economy ratings than Toyota and Nissan's full-size pickups.
Myth No. 6: They don't build hybrids
Reality: The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.
Myth No. 7: Their union workers are lazy and overpaid
Reality: Chrysler tied Toyota as the most productive automaker in North America this year, according to the Harbour Report on manufacturing, which measures the amount of work done per employee. Eight of the 10 most productive vehicle assembly plants in North America belong to Chrysler, Ford or GM. The oft-cited $70-an-hour wage and benefit figure for UAW workers inaccurately adds benefits that millions of retirees get to the pay of current workers, but divides the total only by current employees. That's like assuming you get your parents' retirement and Social Security benefits in addition to your own income. Hourly pay for assembly line workers tops out around $28; benefits add about $14. New hires at the Detroit Three get $14 an hour. There's no pension or health care when they retire, but benefits raise their total hourly compensation to $29 while they're working. UAW wages are now comparable with Toyota workers, according to a Free Press analysis.
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Comments: 43
I won't buy Japanese cars. I've had two and they were both crap plus no one wanted to work on them.
22 is NOT good gas mileage. It's pitiful. I drove a Prius for the last two years and enjoyed 49.7-51 mpg and that was with the air conditioner running. Also, I didn't have to open the door and pedal up the mountains of the west. The Prius has lots of pep, unlike the smaller USA made cars. But the big 3 have stubbornly stuck to what was working and not moved forward so they have fallen behind in technology. Yes, they have new hybrids, but do they have the bugs out? I'm afraid not.
My car buying days are over but if they were not, I would make an effort to buy American. However, will they be here in two years to support their products??? Even Americans can't be that patriotic.
Last two vehicles I owned were a Chevy Lumina minivan and a Ford Windstar minivan. I can't tell you how frustrating it was owning these 2 vehicles. Something was always going wrong with them.
Here's a list of problems that I experience with my Windstar that never made it past 89,000 miles. I eventually towed it to my local car dealer and bought a Hyundai Santa Fe.
Engine light on: Had to replace upper and lower gaskets plus get a new oxygen sensor. Cost - $500.00
Windshield wiper motor blown: Had to replace motor because water got into the motor housing. Cost - $250.00
Keyless entry: Only 2 doors would lock when using keyless entry. Had to manually open and lock door with keys.
Air conditioner: Flapper that changed from heat to air conditioning broken. Had to have it manually changed in the winter for heat and changed back in the summer for air conditioning.
ABS sensor light stayed on: ABS braking system went out. Cost to fix - $800.
Electrical malfunction causing break lights not to come on. Cost to fix - $400.
The list goes on and on and on.
I now own a Hyundai Santa Fe and life if wonderful. Cost so far - $30.00 for oil change and $16.00 to fix a flat.
Once again, I'd have to see more evidence that American made vehicles are just as good or better than their foreign counterparts.
Lloyd
If the quality holds up, I will have no problem supporting the American auto manufacturer the next time I'm in the market for a vehicle.
Throwing more taxpayers money out the window in bailouts is not the answer.
Please understand, I'm not a fan of the big 3, but I am more concerned about the impact of the failure of these companies on the middle class. And there are two sides to every story.
Yes, that is the problem. Giving money to failing big business is not anything like an appropriate solution. We need real jobs that people can be proud to do and give real value. If we have to do a government funded public works program to make that happen, that is where the money should go.
We have always owned GM cars and have never had any problems.
My husband worked for GM for 31 years.He came home filthy,(black sooty stuff in his hair and on his clothes and gross as it sound,up his nose)stinky and still wet with sweat after a 30 minute drive home.He hated every minute of every day but did it for a decent wage.He was lucky if he made $60,000 a year,usually less unless he got in a lot of overtime.And yes we have good medical care,we have to pay office calls and a small co pay on prescriptions.
I dont understand why people think it is horrid that the factory workers make a decent wage.You would think that everyone would want to.
There are a few hundred thousand retirees,I dont know what would happen to them.My husband and I are young enough to get a job if we lose all or half of our pension,we would have to move somewhere as there would be thousands looking for work,but many are too old to work.What will it cost the country when all of them need assistance? When some lose their homes or cant afford heat or food?
And I didn't hear anybody telling the banks and AIG that they needed to restructure and lower compensation for its mainstream employees
Of course, many conservatives want to bust the UAW and keep it from organizing the auto plants in KY, TN, SC and AL.
Even in a Chapter 11 bankruptcy reorganization, the government would be stuck paying the pensions, health care and unemployment benefits of the people affected. Would you rather pay them now or pay them later?
And all this ignores the restructuring the auto companies have made over the last ten years, including concessions from the UAW (including lower pay and benefits for new hires).
Ah, so the last bail-out has only served to make matters worse. Maybe, just you know think about this: we were told there would be oversight to keep the banks in line. If we can't get them to lend the money from the bail-out as was meant to be their part of the deal, take the money back and give it to the local banks who agree to take over and work out the toxic mortgages. Fix the problem at the source. Meanwhile, there are plenty of people with plenty of money to invest if they can be convinced their investment will be safe. Would you want to invest in GM or Chrysler? Why would you want us collectively to invest in them?
The people need to get this money back, it is the only way the US is going to rise out of this pit, tax the rich ripoffs and pay off the deficit, and then stop sending out money and jobs overseas. We need to send out CEO's, execitives and manager class over to China, that'll show them!
The point is, the American cars, most of them are competitive. When I travel for business I rent the Ford Escape. Love the car, would buy one, hybrid in a heart beat if now was the time to change car. I think and hope the Saturn gives me 6 more years.
A rebuild from the ground up could be a good thing
Pardon me, but I don't trust any Big Bucks industries who rely on lobbyists to sway our thinking and literally control our congress and senate. First the banks, now the auto industry, who's next? They are all standing in line, watching and waiting for a bail-out while the real issues are again put on a back burner. If they've sold so many vehicles, why don't they have any money? Who is kidding who? Sounds like bad business planning that they are now trying to use to take advantage of the American people. Or perhaps they aren't really telling the truth.
The American people are like "Baby Huey" if you are old enough to remember that cartoon, a big baby that was so strong no one could tell baby huey what to do, or make him do anything.
The smart people in America are ignored, insulted, and denigrated in favor of corruption and gambling that people think will help them. The government just tries to shine the people on while letting business do what they want.
Why are we so gullible? Lobbiests, advertisers,and marketers know us too well. It even took an act of congress to make food companies stop using hydrogenated fats that are turning us into diabetics and obese monstrosities. I wonder how long it will take for the pendulum to go all the back or at least settle somewhere in the middle. We are just now looking at Eastern medicine, alternatives in living, moderation instead of glut.
It sure won't be in my lifetime. But at least I am now a more informed consumer, willing to try to live without in the hopes it might have some small impact on my kids and grandkids. And I can help educate them by example (if they notice and listen)
I have a Nissan Maxima and a Mercury Villager. The Maxima (and all the previous Japanese brand cars I have owned have been uniformly well made and well designed. The Maxima is a fabulous car and a pleasure to drive.
The Villager is an awful disappointment. It always needs something and has let me down far from home once too often. I wish I had not bought the Villager.
The only reason I support helping out the big three is to keep their workers from suffering the consequences of management's bad decisions. Even then, I wonder if it is the right thing to do, since it will only help the big three continue to make second class junk. I know our country is capable of making world class autos. It's sad to see a good workforce given bad products to build.
When they claim inferior quality comes from the Big Three, do they realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Do they bother to read the Consumer Report that rated Ford on par with good Japanese automakers.
Do people realize Big Three's gas guzzlers include the 33 mpg Malibu that beats the Accord. And ford has the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the Corolla and Chevy's Cobalt beats the Civic.
Both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.