User 332328

Chrysler / Fiat Deal Is Horrible for GM and Ford

This is a remarkably shallow analysis, even by Seeking Alpha standards.

First, why is it not also horrible for TM and HMC and NSANY and all of the other companies that rely on the North American market for a significant chunk of their income? Second, why do you think FIAT will be able to gain that kind of traction here so quickly?

FIAT has an awful lot of half-remembered bad brand mojo to overcome in the US. Their '70s cars were fun but unreliable in the extreme. It'll take time to get past that, and if and when they do they will be at best a big niche player in small cars. Alfa, marketed correctly, could be an intriguing alternative to BMW and Audi at the lower end but will never in a million years be a mass-volume brand here.

Long story short, it'll be a long time before a critical mass of Americans are prepared to consider, much less choose, a Bravo over a Focus or a Corolla. This downturn will be long past before FIAT becomes a factor here.

Apple's (the Stock) Best Days May be Behind It - Try Thoratec Instead

Well said, and it's good to see you posting here. Everybody loves a stock that has had a good run, it seems... even if the chances of another similar run are essentially zero. I still love the company, and I've held the stock since 1983, but I'm down to a token position and quite comfortable with that.

Will the U.S. Fight the German Car Invasion?

I think BMW's North American operation is going to end up in the same black hole that companies like TOL and ANF are in, for the same kinds of reasons. There are an awful lot of people out there driving X5s (etc.) who are in the process of realizing that they should be driving Fords instead. A $50k car is hard to square with a $100k household income once the HELOC goes away. The lease business will get the worst hit -- I think there are a LOT of current BMW (and M-B, and etc) lessees who will walk away from the luxury marques for a long time as soon as their current contracts are up.