belseware

Clunkermania: Top Good News Economic Story of the Year

I'd like to see that jobs data, too. Where? In Japan?

While I'm on a roll:
"Automakers Go on the Small-Car Offensive"
By David Welch, Business Week Online On Friday August 28, 2009, 8:08 am EDT
:
“Americans Don't Like Small Cars
It is hard to make decent money on small cars unless you have a long history of making and selling them, as do the Japanese. U.S. automakers do not…..
:
“Carmakers badly want to believe that Americans like small cars. Eric Noble, president of the CarLab, a consulting firm in Orange, Calif., says several European and Asian carmakers have hired him to do consumer research on small-car demand. When consumers gave them the thumbs-down, the clients asked him to rewrite the questions to see if that would change the result. It didn't."

I regret BW doesn’t have an option for reader comments. Thank goodness SA does. Herewith my beefs (beeves?):

“[lack of] A long history of making and selling [small cars]” is not why U.S. automakers don’t make a profit from making them. It’s simple: The transplants have a lower cost structure. Period. Though the gap has been closing, it’s primarily through hard work by the big 3 and the weak dollar. It’s unlikely this can maintain, and thus Ford—for example—is planning to offer loaded small cars which can be profitable. ..and they have to make small cars to satisfy government mandates.

I’m tired of the liberal media whining that the big 3 just won’t build cars that the people want. That’s BS. They DO. In this article is info from CarLab that makes it clear. Some transplant automakers (who only do small cars) appear to be in denial.

Between "our" government and the media, the CARS program benefitted Japan a great deal.

Chevy Volt: How It Stacks Up

I can't believe I find myself agreeing with the EPA: "mpg" is no way to measure fuel economy for such a vehicle. But what a potential marketing coup--"230 mpg". Counting cents per mile makes more sense, Rick. When this hit media months ago, GM cited electricity costs of 5 cents KWh! I don't think hydro is that cheap anymore, eh! 11 cents is currently realistic.

It will be interesting to see how dedicated to pushing this vehicle GM's primary shareholder is...will they add over-the-top incentives at our expense? I guess it depends on public reception.

Ford is planning a similar vehicle in 2012--after introducing a couple of ALL ELECTRIC vehicles. All electric is seductive, even though at this point the total range between charges is probably 100 miles with current technology. I wonder if they will all be $40K too...

Cash for Clunkers: Critical Stimulus or Boondoggle?

I stand corrected. Don't trust those gov't stats!

Edmunds.com: Top Clunker Buys
The most purchased vehicles under Cash for Clunkers if 2WD and 4WD versions are included.

Rank,Vehicle, Includes 4WD, Includes Hybrid
1 Ford Escape Yes Yes
2 Ford Focus No No
3 Jeep Patriot Yes No
4 Dodge Caliber Yes No
5 Ford F-150 Yes No
6 Honda Civic No Yes
7 Chevrolet Silverado Yes Yes
8 Chevrolet Cobalt No No
9 Toyota Corolla No No
10 Ford Fusion Yes Yes

...another unintended consequence. Ford rules.

Cash for Clunkers: Critical Stimulus or Boondoggle?

The government's actions have "unintended consequences" galore, but those listed in this article are not that arcane, and have been forseen by many. The fact appears to be that the government chooses to ignore these side effects since some more pressing political objective is met.

Here's another "unintended" consequence: The vehicles being bought are preponderantly NOT high North American content (i.e. they are from the transplants, who in reality have less than half the NA content of Ford, GM, Chrysler--34% vs. 72%). That is further skewing the economic distress of America.

What peeves me most is that after allocating $1 billion, they say, "Oh, wait, we really meant to squander more than that!" and they go right ahead and do so.

Cash for Clunkers Meant for Detroit, Not the Environment

Actually, Mr. User 433976 isn't far off with "The government needs red tape, loop holes, deals, attachments to other bills.... "

Right, Mr. Lindmark, that the environmental aspect is BS. This is for Detroit (Tokyo, Hamburg, etc.), and it is also for Big Brother Sam. Buy a car you can't afford, go deeper in debt, get in financial trouble, voila'--another needy constituent who can be saved to vote democRAT.

Disclaimer: This apparent unwarranted sterotyping of Democrats is for effect, and the author realizes there are many thoughtful, sincere and/or misguided souls out there. But they must be wondering what they wrought at this point....

Appraising the Auto Industry Wreck

Yup. It ain't pretty.

We will get to see how well (or not) Government Motors works, what impact it has on the rest (current survivors) of the industry. The good news is that this is happening quickly, the consequences will be visible sooner rather than later, and course corrections can be made--if there's the public political will.

I, however, think $75 billion mkt cap is feasible. It would only take a few 100% inflation.....

'Government' Motors or Ford: Which Automaker Will Remain Viable?

Andrew:

Good thinking, and sobering to consider.

However, even if it's heavily subsidized, who will want to buy the strange contraption mandated by bureaucrats?

And will one's car choice become a "vote" for left or right? ...like the Prius?

Also, Ford has 2.3 Billion shares outstanding, so this dilution is 13%. Look at GM: 1% for current stockholders...the dilution would be 9900%. Is that "pretty good" (i.e. "less bad")?

Those GM stockholders should each go out and buy a Ford.

Ford: Will Mulally Be Able to Continue His Masterful Job?

Tom:

I can't believe you're suggesting that the Federal Government might act in a predatory way in the auto industry and attack Ford. After all, the Federal Government does not have any expertise in the auto industry, and has already messed it up mightily with mostly pointless regulation. I would think they have learned from their mistakes, and will back off. For example, they might actually let a bankruptcy court handle Chrysler (and GM).

Full disclosure, I am a Ford retiree, and--yes--this is sarcasm.

Will the U.S. Start a Car Scrapping Incentive Program?

I have mixed feelings on this. It would be better to have this sort of program than the ongoing bailing going on with GM and Chrysler.

I agree it should be limited to vehicles assembled in NA--not because the UAW would object, but because we need the (real) stimulus HERE. On the other hand, its the UAW the administration is beholden to, so I guess motives are moot.

The "only for vehicles 8 years old" is a play to the AGW crowd, and in addition doesn't make sense for the reasons Jim Bond outlined so well...

Incenting replacing newer vehicles would increase their supply in the used market, and thus benefit the "lower class" without putting them in an unaffordable situation.

I'm tired of the "class" rhetoric.

Of course, the bottom line to me is the government has gotten involved in things that are not its business, and should stop.

Open Letter to Boone Pickens

GET REAL. "We need politicians who will craft legislation that removes the subsidies enjoyed by the oil and coal industries in order to level the playing field"

FUEL Subsidy
SOURCE per MWh
Oil (?)
Coal $0.44
Natural Gas $0.25
Nuclear $1.59
Biomass $0.89
Geothermal $0.92
Hydro $0.67
Landfill Gas $1.37
SOLAR >>>$24.34<...
WIND >>>$23.37<...
Source: U.S. Energy Information Administration

OK, I agree promoting NGVs beats heck out of stuffing wind and solar down our throats.

Detroit's Been in Trouble Before - Why This Time Is Different

Enough with the "CARS THAT WE WANT TO BUY" myth-- wrt "1. The car companies are acting differently - they want to make cars that we want to buy." Shame on Congress, too.

The domestic automakers developed products that fit their financial situation...with higher costs (labor, legacy) they could not compete with the transplants in small, efficient cars. (Those they have made--some wonderful--are losers forced on them by CAFE).

The domestic automakers have been forced by their situation to build products that actually could give them a profit...trucks, SUVs, large and luxury cars.

So pleeeez don't make it sound like they capriciously chose to make something no one wanted.

Thank you.

belseware

(I randomly chose this article to post the comment I've been meaning to make for some time...)