7 Myths About Detroit Automakers, Detroit Free Press

7 Myths About Detroit Automakers, Detroit Free Press

The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists. Here are seven myths about the companies and their vehicles, and the reality in each case.

This column by Detroit Free Press auto critic Mark Phelan originally was published on November 17 and was updated last Friday to debunk the myths as Congress was about to fashion an automotive rescue package. 

Myth 1: Nobody Buys Their Vehicles

Reality: General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of nearly 700,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota.

Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.

Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.

Myth 2: They Build Unreliable Junk

Reality: The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers."

The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high as or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.

J.D. Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.

Myth 3: They Build Gas-Guzzlers:

Reality: All of the Detroit Three build midsize sedans that the Environmental Protection Agency rates at 29-33 miles per gallon on the highway.

The most fuel-efficient Chevrolet Malibu gets 33 mpg on the highway, 2 mpg better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel-economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic.

A recent study by Edmunds.com, parent of AutoObserver.com, found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.

Myth No. 4: They Already Got a $25-Billion Bailout

Reality: None of that money has been lent out and may not be for more than a year. In addition, it can, by law, be used only to invest in future vehicles and technology, so it has no effect on the shortage of operating cash the companies face because of the economic slowdown that's killing them now.

AO Editor's Note: Just Thursday it was revealed that the Energy Department has rejected the initial requests of Detroit's Big Three automakers for more than $16 billion in retooling grants as incomplete. The decisions aren't final, the department said.

The automakers applied last month for funds for projects to build advanced technology vehicles under the $25 billion retooling program approved by Congress in September. The fund is not only opened to Detroit's automakers but also to other automakers and suppliers of all sorts, from battery makers to Tier 1 suppliers.

The program was created in 2007 by Congress, but wasn't funded until September.General Motors Corp. had sought $3.6 billion for use in its Volt program. Ford Motor Co. has sought $5 billion. Chrysler LLC has sought $8.5 billion from the retooling program. GM said on Tuesday that it planned to make a second application for additional retooling funds.

Myth No. 5: GM, Ford and Chrysler Are Idiots for Investing in Pickups and SUVs

Reality: The domestics' lineup has been truck-heavy, but BMW, Mercedes-Benz, Nissan and Toyota have spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry.

The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel-economy ratings than Toyota and Nissan's full-size pickups.

Myth No. 6: They Don't Build Hybrids

Reality: The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.

Myth No. 7: Their Union Workers Are Lazy and Overpaid

Reality: Chrysler tied Toyota as the most productive automaker in North America this year, according to the Harbour Report on manufacturing, which measures the amount of work done per employee. Eight of the 10 most productive vehicle assembly plants in North America belong to Chrysler, Ford or GM.

The oft-cited $70-an-hour wage and benefit figure for UAW workers inaccurately adds benefits that millions of retirees get to the pay of current workers, but divides the total only by current employees. That's like assuming you get your parents' retirement and Social Security benefits in addition to your own income.

Hourly pay for assembly line workers tops out around $28; benefits add about $14. New hires at the Detroit Three get $14 an hour. There's no pension or health care when they retire, but benefits raise their total hourly compensation to $29 while they're working. UAW wages are now comparable with Toyota workers, according to a Free Press analysis.

 Photos by Manufacturers

1 - The Chevrolet Malibu has been a phenomenal success and won the North American Car of the Year award.

2 - The Ford Fusion was hailed as best in class by Consumer Reports magazine.

3 - The Chevrolet Aveo was named least expensive car to buy and operate by Edmunds.com, parent of AutoObserver.

4 - The Ford Escape Hybrid was the industry's first-ever hybrid SUV.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.