rh13

Is the Chevy Volt Only a Fair Weather Car?

Although I disapprove of the animosity in some of the rhetoric, I have to agree that Mr. Lifton had little to substantiate his comments. He gave no reasons for thinking that the Volt won't work in the cold and his statement that Chevrolet has not solved all the engineering problems is also without factual support and would not be of much importance if it did have factual support, since Chevrolet might be able to solve those problems in due time. They do have engineers working on those problems., after all. A heater to keep the battery warm and a thermostat to control it is simple.

The Big Three Crisis: Stocks Plunge as Politicians Moralize

German cars are great? I'm glad you think that. Will you buy my Volkswagen Passat? I need to get rid of it. Too many multithousand dollar service visits. That engine sludge thing is mean.

Nationalize the Automakers? On Tom Friedman's Op-Ed

I hate to say this because I do have a soft spot for the American Three. But if we are to subsidize the auto industry, the investment would be better made in the upstarts and interlopers. The American Three are behind in delivering quality cars at low cost. Toyota, Honda, Nissan, Mazda, and Subaru all manufacture cars in the U.S. and make a profit. Why subsidize the unsuccessful at the expense of the successful? That will increase the cost of automobiles.
There is also the basic question of fairness. The American Three pay salaries and benefits that are outside the limits of the market. Why should the government, that is, the rest of us, subsidize companies that overpay the favored few?
Finally, there is just no way the government can put up enough money to pay all the people in comparable jobs wages comparable to what the American Three make. Our economy does not produce that much money.
I think there is a fair chance one or two of the American Three will survive in some form without government subsidies. They have done a remarkable job of producing vehicles over the last hundred years and recently they are showing signs of adapting to current conditions.

Nationalize the Automakers? On Tom Friedman's Op-Ed

paulk8756 invites us to look at how well the government has managed other things including social security, the post office, and energy policy. On those matters, the government has performed extremely well. Energy costs in the U.S. are low and have been since John D. Rockefeller was young. Social Security provides an annuity and insurance service at a cost so low it makes the whole medical industry look sick. The Postal Service allows anybody in the U.S. to send a message to anybody else for 42 cents or less, which is far less than it costs in other developed countries. There are other things the government does quite well, too. They include military functions, tax collection, and federal roads.

Ford: Have You Driven a Convertible Preferred Lately?

Ford stopped paying a dividend some time ago.

Ford: Kerkorian's Loss Could Be Your Win

A good article. We don't know what Kerkorian is thinking, or even why he is thinking it.
One possibility is this: Consolidations and sales are being considered in the automobile industry. Maybe Kerkorian wanted to send a signal that he would not interfere with a sale or merger. If that were to happen, it would probably be good for his investment, particularly in the short term.
He hasn't sold a lot of his stock in Ford. He said he is considering selling all of it, but he did not say he would, or when.
Also, maybe he just got stretched thin and had to sell something. I don't know what else he might have in mind.
I haven't changed my mind about Ford. I think it is risky, but likely to pay off very well from its current levels. The current radical sales slump is probably due to the financial market freeze, and that will likely be corrected soon, especially for cars. Cars follow fairly predictable value patterns, notwithstanding the recent experience with SUV's. People aren't going to quit driving. They usually don't even cut down driving very much.

Political Energy Policy Just for Laughs

There is a lot more potential in conservation than people think. I could easily cut my family's use of energy, in our vehicles and our home, in half. That is without reducing our standard of living. Why have I not done it? The time has not been right, and still is not right. Energy is too cheap. Energy has been so cheap for so long that we are presumably wasting 3/4 of what we use. This fall I will probably do a little of the conservation I have in mind.

Is One Automaker Default Almost a Sure Thing?

Actually, the probability of default cannot be determined by the cost of insuring debt, as Mr. Shedlock assumes. Also, he apparently doesn't know how to do the math. According to his numbers, the probability of default of either GM or Ford is over 95%. What it would be with Chrysler included is unknown.

Ford Posts Gains; Analysts Still Cautious

Friday I was guessing that it would probably be a year or so before the press discovered Ford was getting well. Now, with Kerkorian having discovered it, I imagine the press may discover it within a few days. This morning could be the last Ford buying opportunity we will see for a long while.