General Motors too
Just saw an article in the newspaper's business section today about General Motor's troubles. The automaker has one of the smallest shares of the automotive industry than it's had in 8 decades. Although this past year was one of the best years for the automotive industry as a whole, GM lost more business. This, on top of mounting benefits costs for retirees has been a recipe for them hemmoraging money.
The gasoline issue isn't helping anything either, as GM 'bet the farm' on pickup trucks and SUV's back in the late 90's, with very little development going into automobiles. Now that car buyers are switching back to cars, they are loosing out.
It's pretty sad, from what I gather. Although GM trucks have earned a pretty good reputation, the general populus does not see GM cars as being any good. You ask someone that's out there looking for a new car if they are interested in a new Pontiac, Buick, Chevy, etc and they will laugh at you. Instead they will tell you that they are looking at VW's, Toyotas, and even Chrysler products. Cadillac is the only GM product line right now that really has any clout to it. As I see it, much of this goes back to the issue of GM's viewpoint towards small cars. GM has never been able to do it right, and for some reason, GM has never been able to get over their outdated view that small vehicles are not prophitmakers, and cannot be sold at higher prices.
Tell that however to BMW and Mercedes, who are selling large volumes of high-quality compact 3-series and C series model automobiles. Even Honda and Toyota are selling their compact Civics and Corollas at premium prices. The difference in these vehicles is that they have "good bones" GM vehicle don't have the independant suspensions, efficient, smooth running engines, etc. From a mechanic's perspective, I have seen way too much "corner cutting" on the latest GM vehicles....It's like they left out significant steps in the engineering stages. I can't believe the company has not learned in amost 30 years of problems that pretty sheetmetal, and fake woodgrain trim does not sell a vehicle.
I see some of the same problems at Maytag, but not to as great as an extent. Maytag is facing problems with retirees' benefits too. Maytag has also re-designed their washer designs for lower quality, and they have compromised on designs. The big issue with the Neptune motor controller boards going out is a result of a $.30 capacitor that was sourced from a Chinese manufacturer. The components were consistantly not achieving their stated value. Instead of ditching the supplier and going with a more reputable manufacturer, they kept using them for years....sounds like some of the same stuff GM has done, relying on bad designs and refusing to change them (IE: the iron block / alumnium head J-car engine that was built for 14 years and always had head gasket and warpage issues). Maytag apparently is relying on the reputation of their nameplate to sell inferior appliances...the thing is, the public is wising up, and not buying anymore...same thing with GM. I don't hear anyone coveting a Buick the way they did 20 years ago!
Just like GM's first attempt at a truly compact car, Maytag has gone to foreign manufacturers in an attempt to bolster up a position in a shifting marketplace. As the washing machine industry moves towards front-loading, and horizontal axis machines, they came out with a "chevette (or a Vega or Pinto if you like)". Just like the Chevette was a small car built with the big, clumbsy parts off their larger products, The original Neptune and the Neptune TL seem to have gone the same way. While yes, these are reasonably good designs (I even think the Chevette design was better in some respects than some of the earlier foreign cars, but the general public didn't think so). I mean, what's the deal with a mechanical timer with an electronically controlled motor??? The trouble is convencing these "half breeds" are as good as they make them out to be. Plagued with Q.C issues...just like the Chevette...convencing the buyer will be hard. They see an outdated, half-ass design that's unreliable, not an amazing feat of engineering combining the best of old and new designs.
Now, instead of refining their original design, and coming out with a new, competitive product, they "farmed out" to Samsung. GM did the same thing with Suzuki and Daewoo for vehicles like the Geo Metro, Pontiac Tempest, and others. Electrolux made a winning product in their front loaders that have been very popular under the Fridigaire and other nameplates....these are sort of the Toyota Corollas of the washer industry, and with new machines like the LG's and Bosches being the equivalent to a BMW 3-series, Maytag is facing an uphill struggle trying to sell re-badged 3rd rate products with a 1st rate nameplate...again, just like GM! I'm already seeing it. Maytag's reputation for reliablilty and performance has really been tarnished, and it's going to be an uphill struggle to try to take it back, especially with all the high-end foreign names in the industry these days to compete with!
It's very interesting, because Maytag is experiencing many of the same problems, from the same sources as GM is! I sure hope the best for both of these two American fixtures.