Sunday, October 26, 2008

Bye bye big boy

Lost to me in all the election and economic news was the announcement by GM last week that they will cease development of the next generation of their big SUV platform, the one that underpins Escalades, Suburbans and Yukons. The reason is the $2 billion developmental costs. These monsters, plus smaller SUVs and trucks, provided all of GM’s profits for the last 20 years, but no one wants them now. Just a year ago the Janesville, Wisconsin plant that made the big ones produced 20,000 a month. Last month it made 3,000. They are closing the plant before Christmas.

I was at the dealer yesterday having my car serviced, and while I waited I sat in an ’08 Escalade and fantasized. I felt like I was behind the wheel of the Starship Enterprise. This baby had everything, including power, retractable running boards, and an $80,000 price tag. However, a few minutes later I watched a salesman walking a prospect around the beast and overheard him say that they’d get it down around $65k – and that was his opening offer.
I know these things are bad for the environment and a danger to all the rest of us on the road in lesser vehicles, but I felt like Tony Soprano while I was sitting in it, and I think I’ll miss them when they’re gone.

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Well, once I decided to vote for Obama I supposed it was just a matter of time before I started admiring French social policies. I was watching CBS Sunday Morning today (median age of viewers: deceased) and they had a segment on the French health care system. They spend half as much per person, everyone has health care, most services are either free or very low cost, and they have lower infantile mortality rates and beat us in most measures of wellness. I’m sure there are negatives that went unreported, but you have to wonder when we are going to actually do something about our own system. Will Obama & Co. come through?

15 comments:

Anonymous said...

D,

What you missed from the CBS Sunday Morning report, and you had to listen closely, was that it was $ 17-20 BILLION over budget.

They mentioned that twice.

Go Nittany Lions!

d'blank said...

I didn't miss it, i don't think it's relevant. the budget is just a number. the annual cost per person is what is important.

Anonymous said...

For an interesting and optimistic look at a possible avenue for solutions to our health care crisis, go to the Oct 24th Opinion page of the NY Times: http://www.nytimes.com/2008/10/24/opinion/24beane.html?_r=1&scp=1&sq=cochrane&st=cse&oref=slogin

for an opinion by By BILLY BEANE, NEWT GINGRICH and JOHN KERRY entitled How to Take American Health Care From Worst to First. Look to the American pastime to save us. There is a good reason why Tampa Bay is in the World Series and the Yankees are selling used cars. It is the same reason we are paying for prime rib in health care and some of us are being served ground chuck with Hamburger Helper. Time for a little evidence-based living.

On another note. I just read the cover page link to the Esquire endorsement of Obama: scathing and to the point.

Anonymous said...

Nice little article about GM postponing not cancelling development of the next gen full size utilities. You may recall earlier this summer when the price of gasoline went above $4 a gallon, GM shifted as much as possible from producing full size pick ups and utilities to adding production and overtime to smaller fuel efficient cars. This includes the Cobalt made at Lordstown, Ohio. One little bit of trivia is that General Motors offers more models that deliver 30 MPG on the highway than any other car company. But that fact is lost with the media.

So GM's allocation system is that once a month we go out to the dealers and provide them with their shipments and the process is called consensus. When the dealers don't agree to enough production, we go back out to them and try to get additional production, we call re-consensus. So now that gasoline is well under $3 a gallon; $2.17 near me - guess what which models we are trying to fill production? It's not Yukons, or Escalades or Hummer H2 or Suburbans or Silverado or any other full size gas guzzling pigs. We are trying to get additional Chevy Malibu, Cobalt, HHR, Impala, Pontiac G5, G6, Saturn Aura, Vue. The largest vehicle we are trying to obtain more production is the GMC Acadia and Saturn Outlook.

So just a few short months after investing in extra production of fuel efficient cars, the consumers are moving back to larger vehicles.

So how is it that GM, Ford and Chrysler are to blame for the energy crisis as Obama said during the third debate? Although not many this month but we're just selling what the consumers want.

Anonymous said...

You can look not only at france but also Germany and Japan. they both deliver health care at a fraction of what we do and their infant mortality is also much higher. Bankruptcy due to health care bills is unheard of in most of the industrialized world. I think we have insurance companies to thank for that. The last thing they want is the status quo disturbed.

P.S. It's nice to see all the Blank boys finally engaged in the discussion.

Anonymous said...

Just shy of $1,000,000,000,000 = total defense related spending last year. I'm hoping as soon as everyone involved with keeping us safe from the nazis,commies & others not like us, are dead,the sooner the better, we can start using this money to care for people,instead of killing them. Where did we get the idea that it was more important to buy tanks than to care for eachother? How sick is that thinking?

We only have ourselves to blame. Looking around I dont think we should be called a developed nation. We'r way behind the rest of the world in caring for eachother. And the longer we buy into the politics of fear,the longer we stay down.

This weeks dirty words are "share the wealth" I thought that was the idea of taxes & citizenship. Isnt the good of the whole the basics for the Prime Directive? Peace!

Anonymous said...

Bird, I think you meant, our infant mortality is higher.

I certainly think our infant morality is an infantile statistic.

BTW, this reversal of fortunes with the price of oil has sure given Boone "Swift Boat" Pickens hurt dance lessons.

Anonymous said...

Our health care system is the best. I do not believe the stats the Germans or for that matter the French provide. When a wealthy Shiek needs Cardiac care where does he go? Cleveland Clinic.When a child is in need of an operation where do the parents turn to anyone of a number of places that do fantastic work with pediatrics. Philedelphia, New York, LA, Boston etc. Hospitals are learning, developing best practices, centers for excellence,Quality insurance directives. When Congress is composed of Doctors, nurses and Social workers, maybe then they can weigh in on how to fix it.The same might be true for the Auto industry.Wouldn't that be a hoot.I think A congress full of Car Salesmen would be an improvement. Cut the Salary and pay commission on accomplishments. Obama used to drive a big Chrsler 300,dumped for a Hybird escape.At least the one car that belongs to McCain is a k-du. Agree with GAGA. Defense spending needs to be aligned the sooner the better. I think the number posted is 1 trillion. that buys alot of health care.

Anonymous said...

birdman,

I am trying but these guys are really hard to crack, jb

d'blank said...

Warrenout -- best care here but poor access (40 mil w/o insurance) and very high cost.

i read today the John and Cindy have 13 cars, but that was probably the anti-auto press eh Doggie?

Anonymous said...

You are correct, as always Hank. Our infant mortality is somewhere just north of Poland. Maybe. Probably closer to Ukraine.

Dennis, does RL have a ass pocket full of whiskey?

d'blank said...

not no more. i drank it.

kgwhit said...

We do not have a good health delivery system but we do have great hospitals and Doctors for those that have the money.

My company's haggling with insurance companies to find a plan that our employees can handle is on par with a root canal.

Our health premiums have risen by double digits every year except for 94, when Clinton was trying to get reform...sure that was just a coincidence.

A friend's CPA firm dropped providing health benefits and gave the employees an extra couple of thousand a year to let them find their own.

A good enema is more fun that going to an emergency room. We had a woman have a stroke at our office and our receptionist went to see her a few hours later. She found her in a hallway near the emergency room on an IV. They didn't have any place to put her.

Anonymous said...

I'm aware of lots of complaining about health costs & Americans working on plans to be able to afford it. What I dont see is any movement to lower its cost, as in doctors fees,$40 aspirin,$5'000 a nite room rates. My favorite is one price for the insured another for the uninsured.
Thanx for saving my life but, do you really need 3 homes,an apartment in the city,& 6 BMW's Doc? Got problems with mal-practice, do your job right & get a better rate on your insurance.

Anonymous said...

I understand the McCain do have several automobiles and one of them is a race car that Cindy and her son built. I envy them.