Damox's Car Blog

Ford Motor Company posted a profit for the 2nd Quarter of this year, according to reporting statements released today. The company does not expect to return to full profitability for a couple years, but they did post a profit of 31 cents per share in the past 3 months. Compare that to a loss of 17 cents per share a year ago.

This only goes to show that job cuts are the answer for the struggling American auto industry. It's a hard pill to swallow, but hanging on to thousands of employees making cars that nobody wants is not a good long-term plan.
Ford Surprises Wall St. With 2Q Profit

Did you know that GM sells Buicks in China? They've been doing so since 1912. If you're American, you probably hear the brand name Buick and think "crappy car for old people." In China, the name means luxury. So the Chinese must be so used to poor quality that even a Buick seems nice to them, right?

Wrong. Buicks in China are revered for their quality because they actually are high-quality cars. The Buicks in that market are made to higher standards than American Buicks, and the difference can be seen by any novice taking a test drive. From ride quality to interior fit and finish, everything about the Chinese Buicks is better than the car your grandmother drives.

Why would General Motors do such a thing to Americans? Well, we actually did it to ourselves. By continuing to buy Buicks despite low build quality, we gave GM no other choice than to sell us junk. GM, after all, has shareholders to answer to. If they passed up an opportunity for high profit margins, how could they justify that to the people who own the company? In China, junk Buicks would ruin the brand name and sales would dry up, so GM makes better Buicks for that market and makes less profit on each vehicle sold.

Next time you want to blame someone for poor quality Buicks, try calling grandma.
Bringing Home a Good Lesson Learned in China - washingtonpost.com