car_guy

The Financials, the Automakers, and the Call That Cramer and All of CNBC Got Wrong

Apparently Andy believes that the US 3 should have avoided investing in high profit margin products with superior brand names that consumers were clamoring for and instead invest all of the $ in low margin vehicles that consumers were not buying (Honda Civic & Accord sales were down significantly until gas hit $4) and where their competition had superior brand names. If the US 3 had taken Andy's advice they would have gone under years ago.

The US 3 invested heavily in trucks because they still had a superior product that consumers wanted and they intended to keep it that way. They learned their lesson in the '80s when they lost their lead in mid size sedans with bad product. If this strategy is the result of bad management, why did Toyota build 2 large truck/SUV plants in the US in the last couple of years?

What Andy is too lazy to understand is that the US 3 produce a full line of products, including high mileage small cars, (many like the Malibu are very competitive with Toyota and Honda) but their highest margin vehicles are the trucks and SUVs. The only reason Toyota and especially Honda were not hurt as badly with the switch from cars to trucks is becauase they were minor players in the truck market so they had very little to lose.

Go sell your Liar Loans Andy. I heard on the Street that people who can't pay won't default if you charge them a higher interest rate.