GM, Ford, and Chrysler Death Watch Thread

GASMON

Indian owned Jaguar / Land rover announce 600 NEW JOBS, in the UK.

http://news.bbc.co.uk/1/hi/england/7462357.stm

Incidentally, both Jag & Land rovers sales are mostly diesel these days. 2.7 litre V6 twin turbo jag does 50mpg.

Not all doom & gloom in the auto-industry.

Gasmon
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hope_full · Heavy Crude Joined: May 27, 2008 Posts: 268

I have zero sympathy for The Big Three.

My father's involvement in WWII made me anti-Japanese. All during my growing up years, I heard his anti-Japanese stories at the dinner table. Those with dads/uncles who fought in WWII understand what I"m saying. The war wounds went deep in that generation.

And then in 1973, a family friend came by the house to show off a new car he'd just bought. It was a funny looking little station wagon manufactured in - of all places - Japan. We thought it was funny that he'd bought a cheap little Jap car because back in the day, all that came from Japan was trinkets and trash - or so was the thinking.

My friend said it was very inexpensive and a glance inside revealed he was right. Plastic everywhere and pretty stripped down looking. But it got great gas mileage - a little more than 25 mpg.

My brothers each grabbed one end of the little car and the four of them lifted it off the ground a little bit - or so they said.

It was a Toyota.

The big three have sat on their arses for 30+ years watching as foreign companies have come to dominate an industry that America created. Part of the beauty of capitalism is that if you do not change to accomodate changing needs, you die off.

I'm sorry to think of all the jobs that will be lost, but their business model will - hopefully - sink into obscurity. The were unyielding, inflexible and foolish.

I'd bet on Ford to go down first. Their products are especially crummy.

Dan1195 · Heavy Crude Joined: Mar 19, 2005 Posts: 277

Their most obvious mistake is that that they all assumed 3-4 years ago that the initial rises in the price of oil were temporary. This widely held belief was combined with the booming sales of large trucks and SUV's by a general public that likewise believed this to be the case. Therefore the companies all focused their plans on maintaining the status quo, which included lobbying against CAFE increases that, in their mind, would have forced them to use financial resources into creating vehicles that were either a) not as profitable even if successful b) not in line with their marketing strategy c) financially risky as it would have meant a diversification away from their cash cows.

Due to the significant lead time between initial concepts of models and model improvements and the availability of said model in their showroom, most stuff on the lot today was meant for $1.50/gallon gasoline. The industry is simply not able to react on the short time scales needed to compensate for such a rapid increase in fuel costs. The result they have a ton of vehicles on their lots their are simply trying to get rid of without taking a loss. Why do you think I am seeing all those Toyota Tundra ads. But they have no replacement vehicle they can market in most cases. Even in Toyota's cases, they have the Prius, but if that Tundra owner was doing any type of hauling with that vehicle, good luck trying to sell him a Prius as his next vehicle.

Revi · Fusion Joined: Apr 25, 2005 Posts: 3517 Location: Maine

A friend went to trade his late model explorer for an echo. He was offered $100 for the trade. SUV's are going for at least $2000 under kelly blue book price now. That's obviously too high, because even at substantial discounts there are no buyers.

We need a new bumper sticker.

Dummies drive SUV's.

You would have to be brain dead to buy most of the cars the big three are offering.
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hope_full · Heavy Crude Joined: May 27, 2008 Posts: 268

Last week, I was told that my husband's 2002 Ford F150 extended cab truck (with all the bells and whistles and in nice condition) had ZERO value as a trade-in on a new car. The dealer suggested I donate it to charity.

frankthetank

MY bro has a 2000 Suburban that he would like to get rid of! Funny. I told him he can give it to me and i'll use it to haul wood. I'll cut off part of the roof so i can load it from the top. The heated leather seats can dry the wood as we fly down the highway getting 10mpg. He did have a good point, he said its probably worth more as scrap.

You could easily get a couple hundred scrap for a big truck. Take of the caddy converters for some more moolah.
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Roy · Last edited by Roy on Sun Oct 12, 2008 9:00 am; edited 1 time in total

lawnchair · Intermediate Crude Joined: Oct 20, 2004 Posts: 791

In a less regulated country, there would be great uses for an SUV.

Dodge Durango V8 should be able to carry 1500 pounds and tow 5500.

5 pax in the SUV (consider it first class), and build a trailer with seating for 20.

Even getting 5 miles per gallon with the combo, you'd still be at 125 pax*miles/gallon... more efficient than (diesel-based) railroads have ever been.

It's just that very few people actually tax the resources of their truck.

I have a truck that only gets about 2500 miles a year on it. Fortunately, my driving record is flawless and I'm in a low-risk area, so it's cheap to keep it insured. Expect the insurance companies to start advertising ultra-low-mileage multi-vehicle plans more, as people keep their trucks and SUVs, but drive them less.
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At 1% annual growth, human bodies will incorporate every gram in the observable universe in approximately 10,170 years.

mobil1

evilgenius

Roy · Last edited by Roy on Sun Oct 12, 2008 8:58 am; edited 1 time in total

frankthetank

lawnchair-

I totally agree. On the flip side, people drive automobiles that have WAY too much torque/hp then they need. I pull a 16ft boat/motor/trailer that totals around 1000pounds no problem with a car that has a little over 100 hp/same amt of torque. I'm sure i could easily tow 1200 or 1300 pounds if i wanted. This while still getting 20+mpg (roughly 25 or so when pulling the boat).

I would love to see a setup like that. You'd need a big trailer to haul a 100 people. Maybe put tall sides on it and make them stand. Be funny as hell to see in winter.
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jdmartin

crossthread · Heavy Crude Joined: Jun 20, 2004 Posts: 180

U.S. stocks fell sharply Thursday with the blue-chip index enduring its worst June so far since 1930, and plunging to its lowest finish since Sept. 11, 2006, after getting slammed hard as crude soared to new highs and Goldman Sachs disparaged U.S. brokers and advised selling General Motors Corp.

"We're going to move in the opposite direction of oil, and General Motors is going to go out of business, at least according to Goldman Sachs," said Art Hogan, chief market strategist at Jefferies & Co.