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US auto sales likely to fall further
yahoo! ^ | 11-Sept-2006 | Jui Chakravorty

Posted on 09/11/2006 9:22:16 PM PDT by stainlessbanner

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Housing market slows, sales of pick-up trucks slows.
1 posted on 09/11/2006 9:22:19 PM PDT by stainlessbanner
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To: stainlessbanner
The last time I checked, the "Big Three" American automakers all had vehicles for sale in small, medium and large categories. I'm tired of hearing the whining from "analysts" who perpetually predict the imminent collapse of our auto industry because of high gas prices forcing consumers to buy micro-size econoboxes which apparently only Japan sells.
2 posted on 09/11/2006 9:31:56 PM PDT by spinestein (Follow The Brazen Rule!)
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To: spinestein

The problem isn't a lack of product, it's that Ford and GM dumped most of their R&D money into large trucks and SUVs, and skimped on their cars. Now that the truck/SUV market is collapsing, they have to fall back on products that aren't as good (in general, there are exceptions like the Fusion) as the competition.


3 posted on 09/11/2006 9:42:55 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

A very good point. And even in those truck markets the Japs have made tremendous improvements in the last few years. Things like the Toyota Sequia are pretty darn nice.


4 posted on 09/11/2006 9:47:01 PM PDT by SmoothTalker
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To: stainlessbanner
"With high gas prices, people on the fringe will keep moving toward more car-type vehicles," Tynan said. "As that shift happens, the import brands are really there with a much more balanced portfolio of products."

Deja vu of the 1980s. Detroit and Dearborn never learn.

5 posted on 09/11/2006 10:01:31 PM PDT by Cobra64 (All we get are lame ideas from Republicans and lame criticism from dems about those lame ideas.)
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To: spinestein

Their quality is crap.


6 posted on 09/11/2006 10:04:53 PM PDT by Cobra64 (All we get are lame ideas from Republicans and lame criticism from dems about those lame ideas.)
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To: Spktyr
[The problem isn't a lack of product, it's that Ford and GM dumped most of their R&D money into large trucks and SUVs, and skimped on their cars.]

While the actual picture is far more complicated than this, I pretty much agree with your summary. Assuming that's the case, then if they lose market share to other car makers (overseas or not) making a superior product, then it's just TFB for them that they made such bad business decisions until they can manage to get their act together (if ever).

This may be an unpopular thing for me to say, but one of the bad business decisions made by all three big American automakers was to promise such a huge and unsustainable amount of medical and retirement benefits to union workers. It makes it tough to run your core business of selling quality cars at affordable prices if company expenditures on former employees more than wipe out any profits.
7 posted on 09/11/2006 10:08:47 PM PDT by spinestein (Follow The Brazen Rule!)
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To: Cobra64

Not quite. This time they actually *have* smaller car options in their lineup and they're not hideously embarrassingly bad, but they're not as good as the competition. In the 80s, they didn't have anything small that wasn't a sick joke (Chevette) or a rebadged import.

The sad part is that they spent all their money on making bigger and better trucks and neglecting most of their other segments. For example, in a world where the Chrysler LX cars are mopping up the competition in the "full size" car segment, the appropriate response isn't going to be "put a V8 in our FWD product" or "promote the heck out of our boring FWD/AWD car that doesn't have a V8". The appropriate response is "bring out a badass V8 RWD car that people want to buy." And they're simply not doing that.

A great case in point is the Chevy HHR. Instead of either resigning the market segment or instituting a crash project after the clear success of the PT Cruiser, GM decided to hire the PT Cruiser designer away and wait four years, then come out with their distorted looking version.


8 posted on 09/11/2006 10:16:47 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

Honda and Toyota inovate circles around the "Big Three" and have better quality product. It's a wonder the public has been as patient and loyal as they have.


9 posted on 09/11/2006 10:28:02 PM PDT by claudiustg (Iran delenda est.)
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To: claudiustg

Ford and GM have a much worse problem than that.

There's an entire generation and a half of people that have gotten out of the "habit" of buying domestic. For most of Ford and GM's product line, every year the average buyer's age increases by about a year. Think about it - the implications are *very* unpleasant for Ford and GM.


10 posted on 09/11/2006 10:32:13 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr
Here is an example of a car that GM could sell the snot out of but it will be coming to market three years too late. The Mustang is eating its lunch.

Chrysler has the Challenger, Charger, 300. Gm is too little too late; as usual.

BTW, I built this car 5 years ago. People that see it want it - it's all curves. Detroit should build 'em.


11 posted on 09/11/2006 10:35:17 PM PDT by Cobra64 (All we get are lame ideas from Republicans and lame criticism from dems about those lame ideas.)
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To: Spktyr

--- For most of Ford and GM's product line, every year the average buyer's age increases by about a year.---

Yes, and for a whole generation of kids Honda Civics have become the universal hotrod, not the Mustang or Camaro. Those are your daddy's car.


12 posted on 09/11/2006 10:43:48 PM PDT by claudiustg (Iran delenda est.)
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To: Spktyr

"A great case in point is the Chevy HHR. Instead of either resigning the market segment or instituting a crash project after the clear success of the PT Cruiser, GM decided to hire the PT Cruiser designer away and wait four years, then come out with their distorted looking version."

GM has zero vision. They follow late, and slow. The HHR being an example.

A criticism of the PT Cruiser initially was lack of power, so Chysler introduced a higher powered turbo motor option.

Rather than at least follow late and slow with a product which competed, GM introduced the HHR WITHOUT a higher powered motor option.

The HHR looks okay, but is not anything beyond the minimum to be expected, due to GM's ultra conservative approach to their business.

Bean counters rule at GM. They are turning out better vehicles, but they usually fall short of the competition.


13 posted on 09/11/2006 10:53:18 PM PDT by truth_seeker
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To: Cobra64
Speaking of curves, all the Ford designers other than J. Mays and the Heinrik over at Aston Martin don't seem to be able to do them either. They've completely botched the new XJ and XK over at Jaguar.

I'll stick with mine, thanks.


14 posted on 09/11/2006 11:52:29 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Cobra64

And, by the way, most of the would-be Camaro owners (those that won't get a Mustang) will probably end up buying the Challenger, because it'll be out first, and it looks just like the old car. The new Camaro is too polarizing - too many people are turned off by it.


15 posted on 09/11/2006 11:54:19 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: truth_seeker

Exactly. They need to clean out the beancounters with a flamethrower, so as to cauterize the wound to prevent reinfection.

GM is making better vehicles, true - but they don't make anything inspiring, that makes you want to run in and buy one. There's no decent halo car, other than the getting-to-be-unaffordable Vette. Nissan's back in business partly due to the fact that the Z is back in the form of the 350Z, it's affordable, and it drags people in the showroom to look at it. Guy goes in to drool over the Z, drives out in an Altima or Maxima or Armada because he needs something for the family. The Corvette can't do that, it just costs too much; people come to drool, see the pricetag and run out of the showroom (if the dealer experience doesn't do it first).


16 posted on 09/11/2006 11:58:32 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: spinestein

Gas is going down in price. Also, GM has developed hybrid SUV's that get very good gas mileage. Look for them in 2008. Already,they also have SUV's which can run on ethanol. Also, GM is doing better. I am sick of people bashing the only American manufacturing which remains.


17 posted on 09/12/2006 5:29:36 AM PDT by nyconse
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To: nyconse
I am sick of people bashing the only American manufacturing which remains.

But they make it so easy....

12,000 paid not to work (UAW Union Alert)

18 posted on 09/12/2006 5:32:55 AM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: Cobra64
Their quality is crap.

You are another victim of the pro-Japanese automotive media.

19 posted on 09/12/2006 5:34:28 AM PDT by Erik Latranyi (The Democratic Party will not exist in a few years....we are watching history unfold before us.)
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To: stainlessbanner
Capitalism 101.

All that is necessary is make a product the consumer is willing to buy at a reasonable price.

I bet a year's salary if Ford was selling new Fusions for $8,999 they couldn't make them fast enough.

20 posted on 09/12/2006 5:35:35 AM PDT by Lurking in Kansas (Nothing witty hereā€¦ move on.)
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