Can the Big 3 regain consumers confidence?

Recently I posted a blog talking about the Myths and Truths in the Detroit
Big 3 Auto Industry and shortly after that I was listening to one of my favorite
talk radio shows. Lucky for the caller on this particular day, the show had a
guest host that did not hang up on him. The caller was from Detroit and raised
in in a family that their livelihood was one of the Detroit Automakers. From the
time the call began the caller was on the defense ranting and raving about how
great American cars are and how people that buy foreign cars are just "idiots".

Now let me start by saying he was somewhat right, not about the "idiot" part of
course but about how American cars can be just as well made as imports. But,
yes my big BUT here is, that regardless of this there is the one big hurdle called
"resale value" to overcome.

Here's my personal analogy/example if you want to read it';



So the total cost of ownership of my 9 Year old Import SUV would be around
$38,500.00 and would have been basically worry free for 9 Years.

Whereas the cost of ownership on the 9 Year old American SUVB would have
been around $43,00.00 and would NOT have been worry free. Thats a
$4,500.00 difference and a whole lot more headaches.

Now let me ask you this, would you hand someone an extra $500.00 a year for
nothing in return but a whole lot of headaches? Not if you have lick of sense
you wouldn't!

How are the Automakers going to overcome this hurdle?, I don't have the answer,
I'm just a consumer on the outside looking in. What I do know is that it will take
many many years, I do see some of the American cars starting to have a better
resale value but it is a long and arguos process, and I truly hope the Big 3 can
survive against the odds.

Tiffany Griffith @ WOKV.COM Recenlty wrote this great piece which prompted me
to add my above notes.

The big three automotive companies are trying to gain the confidence of the
federal Government, but what about the confidence of consumers?

Paul Mason with the University of
North Florida's Business College says
Americans have gained some confidence
in American cars, but the price is the
biggest drawback.

"The general perspective is that the
Japanese cars and some the German
cars are still superior in quality. And
so why should you spend more money on a car that you don't think is
as good?" says Mason.

He also believes a majority of consumers would be against a bailout,
but in favor of loans if automakers cut their labor and benefit costs.

"And then Americans would buy more of them, and that increase in
demand would help the industry get out of its current troubles."

To move more cars off the lot, Mason says smaller, more affordable,
fuel efficient cars and electric vehicles need to be produced.