GM to shut down for half of the first quarter.

[ATeam]

outside a few windows for toyota we have not had many(if any) auto industry runs in the last few months so 0-0 equals what? now other factory types closeing or slowing down thats a worry we have had lots of repair parts to fix assembly lines. on the up side maybe they will break faster if they sitto long not moving and we will have a binge when things pick up agian

Diane and I have hauled no automotive freight in many months, but there is the capacity issue to consider. Say there are 500 straight trucks out there hauling automotive freight (I do not know the actual number). Now say the plants they serve close so their freight falls to zero. What do you think these 500 truckers will do?

Some will go home and sulk but many will get busy and look for new sources of freight. That means they will be knocking on your non-automotive shippers' doors.

How do they better serve the customer you are already serving well? They offer a lower price. The non-automotive load you hauled at $1.50 a mile now goes on the new driver's truck for $1.25, which may be more than he made hauling automotive freight before.

I know of no automotive freight expediters who have moved to non-automotive freight but this scenario is plausible, is it not?

 

[piper1]

I know of no automotive freight expediters who have moved to non-automotive freight but this scenario is plausible, is it not?

I have lost my good paying non automotive run to Kansas from Toronto.

We were undercut (fairly deeply) by a company that used to do a lot for GM. Was our price too high? Not really when you consider the service we gave them (next day by noon). If what we were told is even half true the new guys are doing it for about a 5 % profit.

And so it begins..........

 

[P51bombay]

You are right. We we simply get paid too much money to pull automotive freight. Just last july I pulled two skids from Nogales AZ to Detroit MI for 1700 dollars. Now does that make any business sense?

It does when they are cheap Mexican made parts bound for that "American made" car.

 

[Lawrence]

I have lost my good paying non automotive run to Kansas from Toronto.

And so it begins..........

I'm sorry to hear this. Hopefully, you can replace it with another run.

 

[Lawrence]

Diane and I have hauled no automotive freight in many months, but there is the capacity issue to consider. Say there are 500 straight trucks out there hauling automotive freight (I do not know the actual number). Now say the plants they serve close so their freight falls to zero. What do you think these 500 truckers will do?

Some will go home and sulk but many will get busy and look for new sources of freight. That means they will be knocking on your non-automotive shippers' doors.

How do they better serve the customer you are already serving well? They offer a lower price. The non-automotive load you hauled at $1.50 a mile now goes on the new driver's truck for $1.25, which may be more than he made hauling automotive freight before.

I know of no automotive freight expediters who have moved to non-automotive freight but this scenario is plausible, is it not?

Phil - This is my point exactly!!! It is all about capacity. Capacity. Capacity. Capacity. You will not be hauling Toyota or Honda freight as a replacement - it's completely out of their manufacturing philosophy.

 

[BillChaffey]

It's not the fault of Union workers as much as Union mentality. Union management's only concern is how much can we squeeze from the Company, with no concern if the company can bear the expense & stay competitive, let alone be profitable.

 

[Oilerman1957]

I read an interesting article yesterday, Toyota supports the bailout loans because of fear that if GM, Ford or Chrysler went under it could give an asian automaker {like China or India} a channce to move in and buy cheap assets here [Like dealerships, designs for cars, even plants}. The problem then starts for Toyota, Honda, and so because now they wont be the so called cheap manufacturer. Picking up car designs or picking up dealerships at such a low cost for asian carmakers would make Toyata n Honda no longer competitive. Interesting.

 

[davekc]

I believe I read in 2010 both China and India are going to sell a line of budget cars in the US. As for building them here, I am not so sure. I don't think they would have a interest in paying US wages. Pretty much why they make everything there and ship it over.

 

[highway star]

Phil -You will not be hauling Toyota or Honda freight as a replacement - it's completely out of their manufacturing philosophy.

Lawrence, once again, that's just wrong. In my 10 years in expediting I've hauled lots of Toyota and Honda. I'm sure they would like to use expedite as little as possible, just like the Big 3, but it's a necessary part of JIT.

 

[mjolnir131]

in the last 6 months i have hualed way more freight for toyota then the big three

 

[chefdennis]

I wouldn't look for those cars from china or india to be built here. BUT, Ford just shut Michigan truck for 18 months and are re-tooling it to built the focus's that they will be shipping overseas.......... Explorers and expedidtions are being sent to lousiville, and bulit in smaller numbers..

As for hauling toyota frieght. I have amore then a few loads to several places in indiana for toyota.

 

[OntarioVanMan]

Dec 17, 2008

Ontario Premier Dalton McGuinty says a proposed $3.4-billion rescue package for struggling automakers is just the first of what could be several payments.

McGuinty says the money promised jointly by Ottawa and Ontario to the Detroit Three is simply a lifeline to sustain the industry.

He warns it's too early to speculate on how high the aid could go because the province is still assessing documents and plans.

His comments come one day after Economic Development Minister Michael Bryant called the possible loss of the auto industry in Ontario a "doomsday scenario" that cannot come to pass.

Last week, Ottawa and Ontario announced they would provide the equivalent of 20 per cent of whatever emergency aid Washington provides – a figure proportional to the number of vehicles produced in Canada.

But the $3.4 billion in aid for Chrysler, Ford and GM won't come until the U.S. makes its plans known.

NDP leader Howard Hampton says he believes Ontario's share of the current auto aid will be about $1 to $1.5 billion but should be higher.