New cars undercut used models as industry tries to move metal

FT ^ | 04/09/09 | John Reed

[TigerLikesRooster]

New cars undercut used models as industry tries to move metal

By John Reed, Motor Industry Correspondent

Published: April 9 2009 03:00 | Last updated: April 9 2009 03:00

In one of the most striking signs yet of the conflicting pressures buffeting the auto industry, some new cars are now selling more cheaply than used vehicles.

A shortage of good-quality used cars combined with aggressive discounts offered on many new ones by retailers and manufacturers now mean that some new cars can be had for as much as £1,000 less than used ones in good condition.

[TigerLikesRooster]

Ping!

[Seaplaner]

...some new cars are now selling more cheaply than used vehicles.

Does this mean that it's only a matter of time before some peeps start flipping cars?

.

[al baby]

before some peeps start flipping cars?

well it is almost Easter

[blam]

Other metal troubles on the horizon:

EU Warns China Over Increasing Steel Exports

A simmering trade conflict between Europe and China is nearing the boil as state-supported Chinese steel companies ramp up capacity despite drastic cuts by the rest of the world.

By Ambrose Evans-Pritchard
Last Updated: 9:53PM BST 08 Apr 2009

ArcelorMittal, the world's biggest steelmaker, yesterday told its European workforce that production cuts of 50pc would continue indefinitely due to the "exceptional economic environment", raising fears that chunks of Europe's steel industry face closure.

"It is a catastrophe, particularly as management does not say when production will be resumed," Jaques Laplanche, secretary of Mittal's European Works Council, said.

A 166-page report by the European Parliament has accused China of systematic distortion of its steel market, resulting in "irrational capacity extension". This is promoted, it said, by "artificially depressed cost levels" and export rebates.

[snip]

Beggar Thy Neighbor begins?

[TigerLikesRooster]

Yes, led by China because its regime has most to lose if domestic situation deteriorates badly. It is not just about money. The trouble there could lead to regime change and whole other problems.

It is foolish to expect China to become consumers of the world, while the rest of the world start saving and rebuild their balance sheet. Both Chinese regime and Chinese people in general are now going to survival mode. You won't expect much increased consumption from them.

This is rather an elementary fact, but it was none the less lost among movers and shakers of world business.

[blam]

"This is rather an elementary fact, but it was none the less lost among movers and shakers of world business. "

Yup...I agree.

It wasn't that long ago though that some were saying that internal consumption would rise and make up for lost exports. WRONG!

[uncommonsense]

Unrecognized past inflation in the supply chain, now deflating somewhat just like housing. But with unfettered printing of dollars, watch new durables rapidly climb since purchasing power will go down.