WSJ: Ford auto sales plunge 31% GM sales sink 32%, Chrysler’s 35%

MSNBC.Com / Wall Street Journal ^ | 11/02/2002 | Wall Street Journal

[Bobby777]

Vehicle sales plunge in October

Big 3 automakers’ figures drop over 30 percent vs. last year

THE WALL STREET JOURNAL

DETROIT, Nov. 1 — Auto sales fell in October, despite stepped up interest-free financing and other discounts, amid tough comparisons with an unusually robust performance a year earlier.

[RLK]

Go Here:

http://www.freerepublic.com/focus/news/777526/posts

[Revolting cat!]

The margin for auto manufacturers on mew vehicles is huge, in thousands of dollars. I don't have the exact figures, but I recall reading once in the same Wall Street Journal that the margin on a new $18,000 minivan was something like $7,000. That's why the auto companies can adjust the prices of their products for the markets, and sell them for much less in developing countries than here in the US. The cost of production has nothing to do with the price in the US, and this is the case in other areas. The American way of pricing is whatever the market will bear. Think seven dollar, ground cardboard, ballpark wieners!

[FormerLurker]

As for the protectionism that is being advocated here by some, it always hurts those it is most supposed to help.

It was corporate lobbyists that demanded and received protectionism. The H1-B program is a direct result of intense lobbying due to the false premise that there was a shortage of skilled workers here in the US. You're right, protectism IS counterproductive. We simply want the unnecessary protections given to corporations be abolished.

[Woodman]

I for one will never be buying thatNew $18,000 minivan until the price is around $12,000 to $13,000. BTW With options I think that Minivan may be closer to $28,000.

[FormerLurker]

1. You have to start sometime, why not now? Of course you will be taking a pay cut that is why I had the 3 year time frame.

I can't get a job doing what I've done for 17 years, never mind a job that I have no experience for. You think one can just walk into a company's HR department and demand a job?

2. I consistantly find positions not filled internally because many companies have realized that the internal route causes too many inbred problems.

80% of the managers that I have worked for had come up the ranks from within the company. The ones that were hired from outside the company had significant experience in management.

3. Although I do see many H-1 employees out there, I have experience at many major firms and have yet to see an H-1 in a management position.

The founder of the last company I worked for was from India. At the last interview I was on (in 2001), 3 out of the 5 people I interviewed with were foreign nationals. One Chinese national had such a thick accent I couldn't understand half of what he said.

I not saying there are none out there, but I'm not seeing that trend.

You might be more in the Information Technology segment. On the engineering side of the fence, foreign managers aren't only common, but prevalent. As an aside, I took a 50% pay cut to get into this industry 10 years ago, I do not have a tech degree and I am more than doubling everyone on that list except for the Pharmacist.

[Woodman]

I know many foreign born managers. The majority are US Citizens and some are green card holders. I don't know any H1-B's that are managing a group. I have seen some H1-B's as leads but that is rare.

After 17 years you must have a great deal of business knowledge that is marketable and you can leverage. I have been on both sides of the fence so please don't think I am being condescending, I’m just trying to be helpful.

[FormerLurker]

As an aside, I took a 50% pay cut to get into this industry 10 years ago, I do not have a tech degree and I am more than doubling everyone on that list except for the Pharmacist.

Oops, that part of your post was off my edit window. To respond to that part of your post, as you say that was 10 years ago. I'd gladly take a 75% cut in pay to get back to work, but there's virutally nobody hiring in my field. And the companies can be EXTREMELY picky about who they hire, as they receive hundreds if not thousands of resumes from highly qualified individuals for every position they announce.

[38special]

We're waiting on our 2003 Ford Mustang Mach 1 to be delivered. http://www.mach1registry.com/

[RLK]

We're waiting on our 2003 Ford Mustang Mach 1 to be delivered.

--------------------

I wouldn't brag about it. When Nasser was president of Ford he introduced himself to a group meeting of company management by saying, "I see a lot of white faces here," and started firing caucasians on that basis. The day I buy a Ford product is the day the sun will go from West to East.

[38special]

Well, Nasser was run out of town now wasn't he? I'm proud to be a Ford owner. We own two other Fords and love them both. Great cars and trucks.

[Dataman]

I have some experience in marketing. Competition drives the price down. If the price gets too low, the manufacturer cannot survive. If the price gets too high, competitors gain market share. If the price is protected, the quality of the service or item decreases. Pricing is determined by several factors. With the execption of monopolies such as the USPS and Microsoft, pricing is determined by whatever the market will bear. Once you start to mess with the market (paying what the employee thinks he is worth, for example) you kill the company that provides the jobs and then the "worker" is worse off: unemployed.

[RLK]

Well, Nasser was run out of town now wasn't he?

---------------------

Nasser never should have been in town in a decent company. Ford has had a habit of putting subversives and kooks into their presidency going back to the time of Robert McNamara.

[Woodman]

I agree with you as well. I think the market will soon be driveing the relative cost of cars down when easy financing no longer attracts enough buyers.

[RLK]

I have some experience in marketing.

---------------------------------

Stay in marketing and sales. That's where you belong. As an economist or analyst of and depth, you ain't going to make it.

[FormerLurker]

BUMP

Sorry about the tone of my last post, I misread what you wrote. I think I might have been a bit punchy and not altogether in a good mood after reading a post where somebody else tried to tell me that there's no such thing as a software engineer and that we don't deserve to get paid.

Thanks for the bump.

[Dataman]

Stay in marketing and sales. That's where you belong. As an economist or analyst of and depth, you ain't going to make it.

Utopian naiveness. I'm not in marketing and sales but I do own a business that provides me with an income far beyond that of the average hourly-wage union whiner. I've been doing it successfully for 12 years and give more away than you likely make. Your condescending tone reeks of the blue-collar union mentality that thinks all management is evil and selfish. I've been on both sides of the issue. I've worked blue-collar union and white-collar management. I don't think you've been beyond the wage scale barrier.

[Dataman]

I agree with you as well. I think the market will soon be driveing the relative cost of cars down when easy financing no longer attracts enough buyers.

The prices ARE dropping! I just bought an 03 Eddie Bauer Expediton for 18% off retail. A friend just bought an 02 Winstar for 25% of retail. Usually the most you could expect was 10 or 11%. It is not a matter of inflated prices, however. I purchased a 98 EB Expediton for about $2k more. It had fewer standard features, less horsepower, less gas mileage and less sophistication.

[FormerLurker]

Once you start to mess with the market (paying what the employee thinks he is worth, for example) you kill the company that provides the jobs and then the "worker" is worse off: unemployed.

I think you should follow your own advice and ask your boss to pay you less than you think your worth. You want to stay competitive you know...

[BurbankKarl]

I heard a conversation last week that curled the hair on my head. According to my source, GM offered a VERY major fleet customer $6800 rebate per 2003-2004 unit ordered... I figured that the 0,0,0 and cash back and not having to advertise these orders or give the dealer a cut added up to a lot, but not that much. That is insane.

Wonder if they threw in Harley Earl....(and the ghost of Dale Earnhardt for that matter)

[BurbankKarl]

Also, the WSJ had an article a couple weeks ago stating that most SUVs and Minivans could be had at two years old at 50% of sticker....there are that many high quality used cars out there.