FORD WARNS VEHICLE PRICES WILL FALL

Financial Times.com ^ | 20 May 2003 | James Mackintosh

[steve-b]

Ford warned on Tuesday that the fierce price war in the US and Europe meant vehicles prices would fall further this year than it had planned.

Ford also cautioned that taxes would be cut and raised the alarm that a couple of supermodels would decide to drag you off to the Caribbean for a week-long orgy.

[shrinkermd]

What follows is paraphrased from Richard Russell: "So what's really happening? The world is suffering from too much in the way of goods -- and consumers are exhausted from too much debt and too much spending. A major problem aside from over-supply and under-consumption is the vast differential in wages between the developed nations and China, India and the Asian nations. The fact is that China alone could easily supply the entire world with all the manufactured goods that it needs -- but even that would not solve chronic Chinese unemployment."

We are having pipe dreams if we assume depreciating our currency will help us export more manufactured products. Further, the USA has been consumer of last resort. When the dollar is depreciated this means foreigners will have a harder time selling to us.

What happens next is anyones guess. My guess is confusion, competing currency devaluations and a subtle but definite trade war.

[ken5050]

exactly my point...it's the planned obsolence, to a fault...though the insurance companies are starting to force the use of replacement sheetmetal...Ther cheapest way to own a car, assuming you're financialy able to do so, is to buy a new one every three years..get it rid of it kust BEFORE the manufacturer's unlimited warranty runs out....it's really the best way to go....quality is fairly good..no problems within 3yrs/36k/...and if anything happens, they'll usually jump through hoops to fix it...then, trade it in for ther newest model..if you go back to the same dealer, you can really work a deal....they go nuts to keep repeat buyers happy...and BTW...little publicized secret..but INSTEAD of taking the 0% financing....you can usually demand, and get, an even bigger discount off the price...it's the cost of financing that the dealer absorbs...he'll pass it along to you...

[Joe Hadenuf]

You gots to be a fool to buy a new car...We own all our vehicles, all old and well maintained....Our young foolish neighbors are paying about $1100.00 *per month* for their two new vehicles. I just shake my head and smile......

[MileHi]

Damn, I like that Mustang! Looks like the classics on steroids.

[freeper12]

Read recently that in the cost of each new car, there is $1200 in health care costs for employees and retirees...that combined with the unions, and HUGE pension shortfalls tells me that Ford witll be bankrupt in 3-5 years...MAX.

[HamiltonJay]

Parts are insane because repair and maintenance is where auto manufacturers are making tons of money! Typical dealership makes more from its service department than it does from sales! In Fact GM is so captive to it that it charges its own DEALERS more for AC/Delco parts that it does auto parts stores!!! That's right! Often its cheaper for a dealer to buy parts from a part supply store than it is to buy it from GM directly!

[HamiltonJay]

All major manufacturing will be bankrupt in next few years, Auto is just a few years behind steel in terms of its pensions bleeding them dry! When more people are on pension than working bankruptcy is the only route...and every one of the big 3 is in the same boat!

Just like Bethlehem and Weirton Steel, auto industry is next... and every major manufacturing inudstry that hasn't gone through this pain will go through it. YOu can't support pensions when there are 5-10 pensioners per current employee! Ah Yes, free trade is such a great thing...

[bmwcyle]

That is where fair pricing laws need to be put into play. If you buy the same quanitly as a reseller, you get the same price.

[HamiltonJay]

Not true! Believe me I worked on the online order system!! Dealers do not get the same price as aftermarket for same product! They use 2 different pricing structures and dealers no matter the quantity do not get as good of a price on the same product as the aftermarket.

[HamiltonJay]

Oh sorry, misread your post, thought you said that they were in play :) Nevermind.

[BrooklynGOP]

Infiniti G35 is nice, too.

[Eva]

My dad had one of those.

[Eva]

My dad had one of those. A Studebaker champion, but I think yours may be a year older. Is that a 1950?

[bmwcyle]

In the case of the car company selling parts to dealers is a monoploy selling to independent dealers. There is a market for their parts and by stopping them from ripping off dealers would put market forces on the price of parts. They would have to deal in the market with the price of the aftermarket parts. The car companies would have to make more on the selling of cars which could bring the price of cars up.

[Lunatic Fringe]

Is this bad news?

Yes, it's another sign of deflation....

[MeneMeneTekelUpharsin]

So, it is not wise to buy a NEW car?

[HamiltonJay]

I agree with you its a scam, as I said I misread your earlier post. Not only does GM charge the dealer more, but if GM would ever catch a dealer buying parts on the aftermarket, the exact same AC/Delco part, GM can recind their dealership immediately! Its a complete scam.

[bmwcyle]

That would be the answer letting the parts manufactures market in a completely open market. Prices would fall!!!

[tiamat]

Extremely Extreme Extremist wrote

FORD: FIXED OR REPAIRED DAILY

Found On Road Dead.

Tia