User 272270's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/272270/comments http://seekingalpha.com/article/98269-auto-industry-recovery-once-again-postponed?source=feed#comment-271771 271771 Thu, 02 Oct 2008 13:18:40 -0400 http://seekingalpha.com/article/97705-chevy-volt-debuts-to-enthusiasm-in-california?source=feed#comment-269581 269581
Take a look at Hondas fuel cell car selling for 100k (or lack of selling)…it cost Honda nearly 2 million dollars…simple math = a loss on each FCX sold. So why do they keep building them? Re-read the paragraph above and now you understand why technologic advances are going to be a huge leap in making these new alternative cars more affordable. Now you understand why there is a good possibility that GM will also loose money when the Volt is actually being sold in the initial stages.
]]> Tue, 30 Sep 2008 11:07:14 -0400
Take a look at Hondas fuel cell car selling for 100k (or lack of selling)…it cost Honda nearly 2 million dollars…simple math = a loss on each FCX sold. So why do they keep building them? Re-read the paragraph above and now you understand why technologic advances are going to be a huge leap in making these new alternative cars more affordable. Now you understand why there is a good possibility that GM will also loose money when the Volt is actually being sold in the initial stages.
]]> http://seekingalpha.com/article/97705-chevy-volt-debuts-to-enthusiasm-in-california?source=feed#comment-269215 269215
My comment above is a fact. These batteries for the Volt are pushing 15 grand a piece because no one to date has figured out how to produce these at cheaper cost. These batteries are actually the length of the entire fram of the car. If these batteries were to cost half of this, that is more room that could make the overall price for the Volt cheaper...also the more volume built will also make it possible for GM to lower the price tag for this car. The only thing that will make this car not come down in price (even if technology is built cheaper etc) is the fact that the demand is so high for this car - which then would make this car remain at the same price and/or actually cost more. The Volt will be costly to build, and GM might have to sell it at a loss for years - like Toyota did with the Prius - until the expenses fall as volume rises.


]]> Mon, 29 Sep 2008 23:17:40 -0400
My comment above is a fact. These batteries for the Volt are pushing 15 grand a piece because no one to date has figured out how to produce these at cheaper cost. These batteries are actually the length of the entire fram of the car. If these batteries were to cost half of this, that is more room that could make the overall price for the Volt cheaper...also the more volume built will also make it possible for GM to lower the price tag for this car. The only thing that will make this car not come down in price (even if technology is built cheaper etc) is the fact that the demand is so high for this car - which then would make this car remain at the same price and/or actually cost more. The Volt will be costly to build, and GM might have to sell it at a loss for years - like Toyota did with the Prius - until the expenses fall as volume rises.


]]> http://seekingalpha.com/article/97705-chevy-volt-debuts-to-enthusiasm-in-california?source=feed#comment-268542 268542 Mon, 29 Sep 2008 12:25:31 -0400 http://seekingalpha.com/article/97467-government-approves-25b-low-cost-loan-package-for-auto-industry?source=feed#comment-268447 268447 Paul- Here are the answers to your questions.

1. Import the 40+ mpg cars they build that are selling well in Europe and elsewhere? They don't need $25 billion to do that, just some cargo ships (which I suspect are readily available right now real cheap.)

Answer: If you understand the relationship between the dollar and foreign currency...you now understand that the difference between these two makes a big difference between the profit a company came make when shipping cars over here. Also, you have under estimated the cost it takes to ship these cars over here. If it was so easy, why don't all the foreign car makers do the same thing? Its simple, it cost more than what you think. Its cheaper for the car manufactures to build billion dollar plants in the US then it is to ship these cars here.

2. Start building the NGV's again (they sell them in Canada and other countries) that Boone Pickens is spending $60 million to advertise for them. They'll sell more of them than Volts, and make more money doing it.

Answer: Detroit could produce Natural Gas cars if they wanted...in fact there are many of them (mostly trucks) that are on the road today. The reason these truck companies have them, is because they are willing to build (spend billions) these natural gas fill up stations needed to fuel these NGV trucks. The answer here is, if some entrepreneur / govt funding would start putting natural gas pumps readily available at your local BP/Shell etc...then the automotive industry would start pumping these cars out in the masses. After all, this technology isn't new by any means. You cant blame Detroit for not pumping these NGV cars out by the masses when no one will buy them because there is no where to fill your car up with Natural gas. Having one pump every 5,000 miles isnt going to cut it...

3. Send each dealer who wants one a dual-fueled NGV, and help them set up a CNG refueling depot at their dealership.

Answer: Who is paying for this CNG fueling station? Once again you have under estimated the cost of this type technology ....you cant expect a struggling auto industry to come up with billions of dollars to transform the way we used the automobile today without providing them funding. How comes people arent saying that your local Exon etc (that are making record profits) should build these at their expense? After all they are in the buisiness of filling your car up...not the auto industry.

So many people are confused on this auto loan package...This isn't a bailout for the auto industry this 25 billion pkg was approved last year under energy bill that was passed by congress. This legislation wasn't just approved, it was funded. If the govt comes out tomorrow and says that (pick any industry that is struggling now) it is mandating certain mpg requirements a few years from now that will cost these companies billions of dollars...the govt has no choice but to provide loans to make this happen, otherwise the companies simply will not be able to meet these requirements and more jobs will be cut. This wasn't a bailout, it was a promised loan that was part of the agreement between the auto industry and the govt last year to reduce our dependency on foreign oil. Isnt this what we want? Everyone keeps complaining about fuel prices...but these same people dont understand the fundamentals behind getting us there.
]]> Mon, 29 Sep 2008 11:13:34 -0400 Paul- Here are the answers to your questions.

1. Import the 40+ mpg cars they build that are selling well in Europe and elsewhere? They don't need $25 billion to do that, just some cargo ships (which I suspect are readily available right now real cheap.)

Answer: If you understand the relationship between the dollar and foreign currency...you now understand that the difference between these two makes a big difference between the profit a company came make when shipping cars over here. Also, you have under estimated the cost it takes to ship these cars over here. If it was so easy, why don't all the foreign car makers do the same thing? Its simple, it cost more than what you think. Its cheaper for the car manufactures to build billion dollar plants in the US then it is to ship these cars here.

2. Start building the NGV's again (they sell them in Canada and other countries) that Boone Pickens is spending $60 million to advertise for them. They'll sell more of them than Volts, and make more money doing it.

Answer: Detroit could produce Natural Gas cars if they wanted...in fact there are many of them (mostly trucks) that are on the road today. The reason these truck companies have them, is because they are willing to build (spend billions) these natural gas fill up stations needed to fuel these NGV trucks. The answer here is, if some entrepreneur / govt funding would start putting natural gas pumps readily available at your local BP/Shell etc...then the automotive industry would start pumping these cars out in the masses. After all, this technology isn't new by any means. You cant blame Detroit for not pumping these NGV cars out by the masses when no one will buy them because there is no where to fill your car up with Natural gas. Having one pump every 5,000 miles isnt going to cut it...

3. Send each dealer who wants one a dual-fueled NGV, and help them set up a CNG refueling depot at their dealership.

Answer: Who is paying for this CNG fueling station? Once again you have under estimated the cost of this type technology ....you cant expect a struggling auto industry to come up with billions of dollars to transform the way we used the automobile today without providing them funding. How comes people arent saying that your local Exon etc (that are making record profits) should build these at their expense? After all they are in the buisiness of filling your car up...not the auto industry.

So many people are confused on this auto loan package...This isn't a bailout for the auto industry this 25 billion pkg was approved last year under energy bill that was passed by congress. This legislation wasn't just approved, it was funded. If the govt comes out tomorrow and says that (pick any industry that is struggling now) it is mandating certain mpg requirements a few years from now that will cost these companies billions of dollars...the govt has no choice but to provide loans to make this happen, otherwise the companies simply will not be able to meet these requirements and more jobs will be cut. This wasn't a bailout, it was a promised loan that was part of the agreement between the auto industry and the govt last year to reduce our dependency on foreign oil. Isnt this what we want? Everyone keeps complaining about fuel prices...but these same people dont understand the fundamentals behind getting us there.
]]> http://seekingalpha.com/article/97619-634b-spending-bill-now-in-congress-provides-loans-for-automakers?source=feed#comment-268400 268400 Mon, 29 Sep 2008 10:42:17 -0400 http://seekingalpha.com/article/97619-634b-spending-bill-now-in-congress-provides-loans-for-automakers?source=feed#comment-268281 268281 Mon, 29 Sep 2008 08:52:49 -0400 http://seekingalpha.com/article/97705-chevy-volt-debuts-to-enthusiasm-in-california?source=feed#comment-268264 268264 ]]> Mon, 29 Sep 2008 08:37:52 -0400 ]]>