Miken

China Looks to Electrify Our Cars

I would like one person to prove to me that ANY hybrid makes economic sense. For example, compare the Toyota Corolla to a Prius. Both within 200 lbs. of each other, wheelbase less than 4" different, basically would be appealing to the same customer from a size standpoint. The Corolla base model is $16,150 and the Prius is $23,375, a difference of $7225. Based on the EPA estimated combined mileage, the Corolla gets 30 mpg and the Prius 46.

At $2 per gallon gas, and driving 12,000 miles per year, it would take 26.0 years to pay off the premium cost for the Prius. At $4 per gallon, it would take 13 years, of course.

An even better comparison would be the Honda Civic and the Hybrid Civic. The regular Civic gets 29 mpg and the hybrid 42. There is a $7545 difference in base price. Using the same calculations it would take 29 years to pay off the premium.

If you want to save the world, by all means, drive a hybrid. If you just want to save money....not a smart idea.

Cars: What It Means to 'Buy American'

Per cent of parts manufactured outside the U.S. is only one metric. If one looks at the entire process from cradle to grave, there is a much more illustrative way to measure content.

From GM's most recent 10-K, and Toyota's most recent 20-K, it shows that even though Toyota sells 33.2% of their vehicles in North America, only 12.0% of their people are here. On the other hand, GM sells 42.7% of their vehicles in NA while employing 47.7% of their people here.

I think this is an even more telling statistic because it goes directly to the number of jobs, whether they may be union represented, management, engineering, purchasing, etc.

While both companies are multi nationals, it's clear which is American based.

I wonder how many Japanese government purchased American cars there are in Tokyo?

U.S. Automakers’ Race to the Bottom

STOP WRITING IN CAPITAL LETTERS....IT MAKES YOU LOOK LIKE AN IDIOT!!!!!!


On Mar 05 11:39 AM wrote:

> WHY ARE YOU SUPRISED ABOUT GM AND FORD. dID YOU REALLY THINK THAT
> THE BLLOD SUCKERS FROM THESE COMPANIES WOULD NOT BE BACK TO THE A--
> H---- IN CONGRESS FOR MORE MONEY.WE, THE TAXPAYER SHOULD HAVE NOTHING
> TO DO WITH CHRYSLER, ITS A PRIVATE COMPANY. GM AND FORD SHOULD MERGE.
> AS A MERGED COMPANY THE CAN REBUILD THEIR BALANCE SHEETS AND GO FORWARD.
> COMBINING THESE TWO COMPANIES WILL ENABLE THEM TO PRODUCE THE BEST
> PRODUCTS AVAILABLE AND SEND THE FOREIGN CAR COMPANIES BACK TO WHERE
> THEY CAME FROM. YOU WANT SOMEONE TO BLAME? BALME THE AMERICAN PEOPLE.
> BUYING FOREIGN CARS BECAME A STATUS SYMBOL. LIKE MANY YEARS AGO IF
> YOU HAD A cADILLAC,YOU MADE IT. THE AMERICAN PEOPLE HAVE BECOME THE
> MOST SELFCENTERED PEOPLE IN THE WORLD. GAS PRICES HAVE COME DOWN,
> AND AMERICANS ARE STILL BUYING THE LARGEST GAS GUZZLING FOREIGN CARS.
> GAS SHOULD HAVE GONE TO $5-6, THEN MAYBE WE WOULD LEARN

Automotive Depression: Government Needs to Let the Weak Fail

Thanks. I have sent a letter very similar to this to my congressman, senators, Obama and McCain during the election campaign. I got a nice form letter from my congressman and one senator saying that they appreciated my input, and went on to justify their various positions on these matters. I received no replies from either McCain or Obama. I figure when they get a few minutes, they'll give me a call. :-)


On Mar 04 08:48 AM AllForSEMI wrote:

> Miken
>
> Can you send this to your congressman please? Well said my friend.
>

Automotive Depression: Government Needs to Let the Weak Fail

This sit-on-your-hands do nothing ideology is exactly why the Republican party is dying. The political base that this philosophy appeals to is shrinking faster than the DOW. I used to be a staunch Republican but the religious fanatics and the Shelby/Corker bunch have driven me away.

The question that people ought to be asking is why the American based companies are in the worst shape. I think that the answer lies in Washington, DC. One of the most amazing things to me in this whole episode is how dangerously the U.S. government is uninformed regarding the largest part of the country's manufacturing sector.

All of the problems in this country manufacturing base can't be laid at the feet of the government, however, consider the following:

1. There is no industrial policy in the U.S. Worse yet, we apparently don't think that we need one. Ask any economist worth his salt if a viable economy can be built around Starbuck's type operations and financial services. There is no value stream. They shuffle around other peoples money, and lately, not very well.

2. There is no coherent energy policy. Drill, not drill. Ethanol, CNG, lithium ion batteries vs nickel hydride...there isn't any clarity. As a result, the auto companies have invest billions in all of these technologies so they can play in the future. Any these choices are a matter of scientific data and engineering choices, not opinion. Why don't we commission a group of scientific thinkers with no prior agendas and let them recommend a course of action. Then make a plan and stick to it.

That is what the Brazilian government did several years ago. They chose ethanol produced with sugar cane waste. As of today, they are totally energy independent. Maybe we could take a lesson.

3. There is no health care plan, I doubt with the self destructive people in Washington, there ever will be.

4. The next question is whether companies should provide pensions, the government should, or should the individual. I understand the emotions these questions bring up, but none of the foreign competition have to contend with these issues as American businesses do.

5. I am the first in line to sign up for free trade, but it works both ways. If we can import cars from China, Japan, South Korea, etc., we should be able to export there as well. Why are countries trying to grow their auto sectors...see #1.

Just my thoughts. the steel industry is a mere shadow of what it once was, garment industry, consumer electronics, shoes, and the list goes on and on. Other countries support the manufacturing sector...and not just in times of crisis.

We don't get it. If these policies don't change, we will fast become a third world country. Then we won't even be able to give Hamas $900B to rebuild the Gaza Strip...a topic for another day.

William Holstein on Why GM Matters

Finally a writer that isn't blinded by the media, uninformed congress, an uniformed President, and the selfish and hypocritical viewpoint of southern politicians. Congratulations Mr. Holstein!

Those of us that have been involved in the auto business have seen the progress that GM has made for the past 10 years. And it has been noted by some in the press. What GM has to overcome are the stories about 'my uncle had a '73 Oldsmobile that had bad brakes'. Ever take a look at a '73 Corolla? The auto business in general has made remarkable progress.

It has been well publicized that the 'trough' year for GM was to be 2009. Recent improvements in the UAW contract scheduled for 2010 will help cash flow, health care changes scheduled for 2010, etc.

The only miscalculation was the perfect storm that developed:

1. Oil speculators doubled or tripled gas prices for no real reason.

2. Bankers, speculators, congress, and dumb people destroyed the housing industry.

3. Wall Street hedge fund managers and people like Bernard Madoff destroyed pension funds and 401k's.

And, as a result, the economy became dysfunctional. OK, I know I sound like it's everybody else's problem, I don't mean to. But certainly the world wide crisis in the auto industry is not because all the CEO's got dumb at the same moment in time.

The part of Mr. Holsteins interview that particularly resonates with me is the dangerous position that the U.S. manufacturing sector is in. This has not happened over night. This has been happening since the 60's, it's now reaching a crisis. The service sector cannot provide the same value added content to the economy that manufacturing can, from raw materials, through fabrication, to market. The American people and government are totally indifferent to this and this will make us a third rate power.

Why do people think that countries like China, India, Thailand, Mexico, etc. are so intent on developing their auto business? It's for the very reason of the value stream and subsequent employment that it brings with it.

Bravo Mr Holstein!

General Motors: Time to Shed Some Brands

"I don't claim to be an expert. It should be treated as an observation by a typical consumer (although one with a pretty good idea about branding). I'm actually quite surprised that SA syndicated it. "

We ALL are surprised that SA syndicated it, it is merely an opinion of one uninformed individual, and you know what they say about opinions. This article adds NO value. Nobody cares what your opinion is Mr. Shuttleworth.

General Motors: Time to Shed Some Brands

<<<For many years the Bonneville and the Impala were the same car.......under the skin.>>>

Don't be naive Tony. There's no "new" car that's different in EVERY respect. Don't think that they don't share engines, transmissions, front and rear corners, etc. The tooling cost would be astronomical.

In terms of powertrains, GM is more diversified than any manufacturer. That's changing a bit with their six speed transmission strategy. With some clever engineering, there are number of variations in their transmissions that make them applicable to a wide range of torque applications.

General Motors: Time to Shed Some Brands

Your inability to recognize the highly acclaimed Malibu says it all.

Pontiac and Chevrolet are the same cars as long as you can remember? Let me refresh your memory; GTO, Corvette, Bonneville, Impala. Are you able to distinguish which are Pontiacs vs Chevrolets?

Sadly, everyone thinks they're an expert and simply regurgitates an article that they read somewhere with no original thought. This author is an excellent example of my point.

I do agree completely with one thing this author writes:

"I don't really have any business commenting on the auto industry. "

What's an American Car These Days?

Write about something you know about. There is not a single UAW worker in those Canadian plants, they're CAW (Canadian Auto Workers) which have no affiliation with the UAW for about 39 years now.

If you want to really annoy a Canadian worker, just say he belongs to the UAW.

"2. What about these nine Canadian-made vehicles, produced by UAW brothers and sisters at factories in Canada, for the U.S.-based Detroit Three. They can't qualify as "American-Made" can they?:

Canadian-made UAW vehicles:

* Buick Lacrosse
* Chevrolet Impala
* Chrysler 300
* Dodge Challenger
* Dodge Charger
* Ford (F) Crown Victoria
* Lincoln Town Car
* Mercury Grand Marquis
* Pontiac Grand Prix

Why Being Number Two Is Good for GM

I have finally figured it out. I was constantly getting frustrated with Seeking Alpha and the self annointed experts and their totally uninformed opinions...then it dawned on me. They aren't serious!! This is a comedy website. Now that I have realized this, albeit late, I love this site.

I'm wondering how being number 2 makes downsizing easier...hmmmm.

This arm chair psychologist thinks that being number 2 makes people try harder. Avis gave up on that slogan some years ago. I suspect that people at GM have been working pretty hard at this for a while now.

Maybe it's just me, but I'll bet that GM is more focused on cash flow than profits.

And best of all, Rick Wagoner can finally tell the truth. Mr. Newman, you clearly don't know Mr. Wagoner.

That's all the time I have right now, I've got to cancel my U.S. News subscription.

Why Is U.S. Transportation a Losing Investment?

There isn't a single piece of news in this article. Same stuff we've all read a thousand times. And with all due respect, I'm not interested in this young man's opinion about anything.

September Auto Sales: Why Was Ford Hit So Hard?

Roudy

Why is it that you think they are slowing down??

September Auto Sales: Why Was Ford Hit So Hard?

To jobu37:

You may be correct on the comment that Ford is doing the right thing by not playing as much in the incentives and fleet sales....maybe. It all depends on the price/cost relationship of each company.

The car business has always been a capital intensive business, thus high fixed costs are a reality, so when your sales are down the question always becomes do we shut down the factories and incur all of the fixed cost with zero revenue, or continue to run the factories (paying off the fixed costs, assuming you are making a variable profit) and have diminshed, but some revenue?

When you shut down the factory, you still pay property taxes, depreciation, etc. plus all of the R+D for new products and layoff benefits for the workforce. You have to weigh that against the long term affect of lowering the resale value of your brand.

Several car companies have brought down their breakeven point over the years, so I'm not sure that accepting the zero revenue solution is always the right choice in the short term.

Having said that, temporarily shutting down the plant is certainly not a good long term solution. If the lower sales look like they are going to last for a while, decommissioning the plant and permanently reducing the workforce is the correct answer.

In September, GM offered it's employee discount to everyone. That kept revenue flowing and allowed their unit sales to only be down 15% vs 30% for almost everyone else. One of the good things that did was to reduce national inventory by about 150,000 units going into the 2009 model year. Whether that was a good decision will depend on:
- What was the cost of the vehicles sold?
- How many sales will it rob from October?
- How long will this severe period of sales sales go on (read that the credit crunch brought to us by the banks and U.S. congress)?

Be interesting to see.

September Auto Sales: Why Was Ford Hit So Hard?

I'm a little confused by the whole premise of the article. Why single out Ford...it was a lousy month in general:

BMW down 25.8%
Chrysler down 32.8%
Ford down 34.6%
GM down 15.8%
Honda down 24.0%
Nissan down 36.8%
Toyota down