Perception of the Big 3 Automakers

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I think GM's cars have improved greatly in the last 10 years, as improved in quality, grade, dependablity and function.

I think ford has improved some too, just not as much as GM.

As for chrysler? I don't know since I gave up on them long ago, after Benz bought them I wouldn't even look at them for the most part. is there any hope for chrysler now? unsure . I only like the old school late 50's thru the early 70's cars from them.
 
In Charlotte I see a pretty good mix of everything everywhere. It does not matter if you are in the poorest neighborhood or richest, you will see the whole spectrum from Kia to Mercedes. In other places, such as New York or California, I could see things being much different though.

I read a book about the development of the Ford Taurus some time back. Apparently even as early as the late 1970s Ford was having serious image problems in certain markets. Many upper middle class people in places like CA and NY had already sworn off Ford, at least that is what Ford discovered in surveys. The goal of the Taurus was not to compete with GM, it was to push back the Japanese and the Germans by being the most advanced car on the market (in 1986 it was). The domestics probably need to do something like that again if they want to build up their share of the sedan market. Right now they seem capable of matching the Japanese brands, but going way ahead of them is what they need to do.
 
Toyota just had a commercial effectively stating that the buyer who was considering a sequoia or 4runner, because they had "financing deals", was SOOOOOOOOO SMART. Intelligence is a trait of toyota buyers, just cant help it.


Buyers of v8 SUVs... no wait, financers of V8 SUVs (i.e. people who really cannot afford them), at a time when gas is over $3/gal, being speculated like crazy up to $3.50 or $4/gal... yep really smart.

I dont know, maybe Toyota buyers really are smart, but it sure seems to me that their advertising agency and management are a royal set of idiots.

Of course they just did what everyone makes fun of GM for doing... overproducing SUVs at a time when gas is going through the roof. Good thing GM screwed up earlier in the cycle... Id hate to be sitting on SUVs, smart or not, with gas going to $4/gal this summer...

JMH
 
Originally Posted By: Jett Rink
... They KNOW how to build great cars, they just aren't going to show it in a Cavalier, for example. They are building that at a budget price point.

Makes sense: Keep it a secret. Unlike Honda and Toyota (and others) who make great cars at every price point and still make money on them? Weak. Twenty years later, seems the only GM secret related to small cars is that Saturns are Opels (as they should have been all along).
 
At an average profit of $10k per vehicle (for the manufacturer) there's nothing stupid about building GM SUV's.

The demand here hasn't slowed down, and I doubt it will unless gas exceeds $5 per gallon.

GM, or for that matter Ford, can't survive on their small car profit. The break even point for Saturn was 20 years from inception.
 
The perception comes from demographic surveys which show that avg education levels/income of Toyota/Honda drivers are higher than equivalent models of GM.

But somebody else's ignorance (prejudice against GMs) can be your friend. Some of the best deals on used cars are American brands. Picked up a 2005 Buick LaCerne for my in-laws for $9500 from a DEALER. And the car was super-clean and has had zero problems in the year and a half that they've owned it.

The in-laws were checking out a 2003 Camry for $14,900 from a PRIVATE seller before I found the Buick for them. Toyota and Hondas are the most over-priced used cars out there because the power of the herd is strong.
 
Originally Posted By: VeeDubb
The perception comes from demographic surveys which show that avg education levels/income of Toyota/Honda drivers are higher than equivalent models of GM.

But somebody else's ignorance (prejudice against GMs) can be your friend. Some of the best deals on used cars are American brands. Picked up a 2005 Buick LaCerne for my in-laws for $9500 from a DEALER. And the car was super-clean and has had zero problems in the year and a half that they've owned it.

The in-laws were checking out a 2003 Camry for $14,900 from a PRIVATE seller before I found the Buick for them. Toyota and Hondas are the most over-priced used cars out there because the power of the herd is strong.


Yup. I got my 4-year-old PA for about 1/3rd the original MSRP. Right now I owe quite a bit *less* than it's worth, and -- barring any disasters -- I'll stay ahead of it. I doubt I'll get much at trade/sale time, but that's years away.

In the meantime, I'll have had one very nice car to drive.
 
Kestas: I see my share of the older Malibus around here. I'm talking about this new one that Car and Driver was praising, the one advertised as being "the car I can't ignore." That is the car conspicuous by its absence around here. Maybe these are only being sent to certain dealers, say on the West Coast, where market share has slipped the most? I don't know, just speculating.

I'm seeing more and more KIAs and Suzukis on the roads. They seem to really going after the budget shopper. Maybe Chevrolet is getting squeezed a bit, from these on the lower end, and more expensive cars on the other end. The sedan market is tough.

Mr. Critical: You wrote that GM and Ford can't survive on their "small car" profit. I've read that before in the press. Why, exactly, can they not make money on producing smaller cars? Other automakers have not seemed to have had that problem. This strikes me a key problem for them. Hence, the reliance on trucks and SUVs.

Here's an idea. If you can't make money selling the Cavalier and Malibu for what they charge, then ditch the fleet sales and raise the quality and price of said cars. What good is heavy volume if you can't get a return? Better to make fewer cars and turn a profit. Are people ready for a $40,000 Malibu? If it is demonstratively worth it, realtive to the competition, that may be a better strategy. Just wondering, you know.
 
Well, I have one answer. The Ford Focus is (mostly or completely) built at the least cost efficient plant that Ford owns. Why? Because the UAW says you can't close that plant or move production of the car.

Ford has dumped a lot of fleet sales.

GM can offer a $5k rebate on a Yukon and still make $5k. That's the same or more profit on selling 5 Cobalts. Will it ever change? Only if people quit buying Yukons.
 
1. The fixed costs per unit go up with less sales.
2. Unions.
 
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Ford and GM can't make money on cheap small car mainly becuase of cost, and the cost is insurance, retirement benefits etc of it's workers. end of story

only reason they make them is CAFE rules, plus how would it look to the public if they only made gas hog trucks
 
Well, look what we have here in the Chicago Tribune:
The headline reads: Ford to build 30% more of its Focus small cars this year
http://www.chicagotribune.com/business/sns-ap-ford-focus,0,5636215.story

Ford, don’t be afraid to bump up the quality of the interior for a little extra coin, either. The Focus may be a bigger part of the future of your company than you realize. Maybe they better sharpen their pencils at Ford and work a little harder on how to make money from the Focus.

The article was silent about any production plans of the new and improved F-850 King Ranch / Harley Davidson whatever series. Ford’s long range strategy to tailor a monster truck to the fashions of each member of the 1970s supergroup, The Village People, appear to be suffering a setback.
 
Considering current and future gas prices, they ALL better learn how to make their companies remain afloat through higher volumes of small car sales. When will GM / Ford / Chrysler get off the 'bigger is better' wagon? They're trying to play by rules that worked 10 years ago when gas was 1/2 the price it is now and the dollar was worth more.
 
Originally Posted By: Jett Rink
Ford, don’t be afraid to bump up the quality of the interior for a little extra coin, either.

My buddy is a manager for one of the automotive interior groups. He's been saying the same thing for quite a while.
 
Originally Posted By: wapacz
1. The fixed costs per unit go up with less sales.
2. Unions.

3.Management way too much $$$$ for what they produce.
4.Engineers and designers are lacking in general.
 
I'll stick by my story. The "bigger" makes no difference. Put the same amount of money in reducing weight that you put in multivalve engines, 6 speed auto transmissions, variable cylinder displacement, cleaner burning diesels, and hybrids. You'll beat CAFE regulations with ease.
 
Originally Posted By: MrCritical
I'll stick by my story. The "bigger" makes no difference. Put the same amount of money in reducing weight that you put in multivalve engines, 6 speed auto transmissions, variable cylinder displacement, cleaner burning diesels, and hybrids. You'll beat CAFE regulations with ease.


Around southern California, one can often see 2006, and 2007 brand new Expeditions for sale NEW...Ford, Chrysler, and GM just cannot sale these gas guzzlers to save them. You can get an MSPR $32,000+ 2008 Expedition for $22,000+ new...and they still don't sale in the required numbers. The big three have been out of touch with reality for many years. And often their small car offerings are made off-shore, or in partnership with an Asian maker.

When will the big 3 domestic going to offer a US made, high quality small car providing high MPG? They have not done it yet.

But we cannot blame it all on the big 3. One has to blame the stupid idiot consumers that keep buying these huge beasts WITHOUT the ability to justify their utility and size. And most of these folks cannot even afford such cars, not to mention the near $100 bucks it will take to fill the tank.

So the problem is both on the maker's and consumer's side, blame to be spread across both.

How some middle class families afford to gas up these gas guzzlers is beyond my comprehension...then there's the question of their finances, their retirements, their financial futures...all this $$ wasted today at the expense of financial security tomorrow....oh but wait, then you have the idiots that lease cars....this is what Suzy Orman calls the number one stupid thing people do with their money....leasing is fine ONLY for those that can write it off, corporations, business, but not common folks...leasing has to be the stupidest type of car financing around that is often indicative of the person's lack of brains......
 
Originally Posted By: lovcom
Originally Posted By: MrCritical
I'll stick by my story. The "bigger" makes no difference. Put the same amount of money in reducing weight that you put in multivalve engines, 6 speed auto transmissions, variable cylinder displacement, cleaner burning diesels, and hybrids. You'll beat CAFE regulations with ease.


Around southern California, one can often see 2006, and 2007 brand new Expeditions for sale NEW...Ford, Chrysler, and GM just cannot sale these gas guzzlers to save them. You can get an MSPR $32,000+ 2008 Expedition for $22,000+ new...and they still don't sale in the required numbers. The big three have been out of touch with reality for many years. And often their small car offerings are made off-shore, or in partnership with an Asian maker.

When will the big 3 domestic going to offer a US made, high quality small car providing high MPG? They have not done it yet.

But we cannot blame it all on the big 3. One has to blame the stupid idiot consumers that keep buying these huge beasts WITHOUT the ability to justify their utility and size. And most of these folks cannot even afford such cars, not to mention the near $100 bucks it will take to fill the tank.

So the problem is both on the maker's and consumer's side, blame to be spread across both.

How some middle class families afford to gas up these gas guzzlers is beyond my comprehension...then there's the question of their finances, their retirements, their financial futures...all this $$ wasted today at the expense of financial security tomorrow....oh but wait, then you have the idiots that lease cars....this is what Suzy Orman calls the number one stupid thing people do with their money....leasing is fine ONLY for those that can write it off, corporations, business, but not common folks...leasing has to be the stupidest type of car financing around that is often indicative of the person's lack of brains......


You are correct! I bought a 2006 GMC YukonXL Denali that stickered for $56,000 and paid $37,000. It gets 16mpg. But the Honda I was looking at gets 18mpg and doesn't fit my needs as this bus takes me to Florida every year with a family of 5 that saves me $3500 in airline & car rental costs. I'll keep it 6 years so we are talking $21,000 in savings for 2mpg which is meaningless with my 6 mile commute. Plus it qualifies for a business write off of $25,000 the first year which nets me a $10,000 tax credit on the spot the first year and $3,000 for two years after that which is another $16,000 savings. Add it up and I get $37,000 in savings on a $37,000 vehicle. You aren't getting those kind of numbers from a Prius.
 
Originally Posted By: PT1
Originally Posted By: lovcom
Originally Posted By: MrCritical
I'll stick by my story. The "bigger" makes no difference. Put the same amount of money in reducing weight that you put in multivalve engines, 6 speed auto transmissions, variable cylinder displacement, cleaner burning diesels, and hybrids. You'll beat CAFE regulations with ease.


Around southern California, one can often see 2006, and 2007 brand new Expeditions for sale NEW...Ford, Chrysler, and GM just cannot sale these gas guzzlers to save them. You can get an MSPR $32,000+ 2008 Expedition for $22,000+ new...and they still don't sale in the required numbers. The big three have been out of touch with reality for many years. And often their small car offerings are made off-shore, or in partnership with an Asian maker.

When will the big 3 domestic going to offer a US made, high quality small car providing high MPG? They have not done it yet.

But we cannot blame it all on the big 3. One has to blame the stupid idiot consumers that keep buying these huge beasts WITHOUT the ability to justify their utility and size. And most of these folks cannot even afford such cars, not to mention the near $100 bucks it will take to fill the tank.

So the problem is both on the maker's and consumer's side, blame to be spread across both.

How some middle class families afford to gas up these gas guzzlers is beyond my comprehension...then there's the question of their finances, their retirements, their financial futures...all this $$ wasted today at the expense of financial security tomorrow....oh but wait, then you have the idiots that lease cars....this is what Suzy Orman calls the number one stupid thing people do with their money....leasing is fine ONLY for those that can write it off, corporations, business, but not common folks...leasing has to be the stupidest type of car financing around that is often indicative of the person's lack of brains......


You are correct! I bought a 2006 GMC YukonXL Denali that stickered for $56,000 and paid $37,000. It gets 16mpg. But the Honda I was looking at gets 18mpg and doesn't fit my needs as this bus takes me to Florida every year with a family of 5 that saves me $3500 in airline & car rental costs. I'll keep it 6 years so we are talking $21,000 in savings for 2mpg which is meaningless with my 6 mile commute. Plus it qualifies for a business write off of $25,000 the first year which nets me a $10,000 tax credit on the spot the first year and $3,000 for two years after that which is another $16,000 savings. Add it up and I get $37,000 in savings on a $37,000 vehicle. You aren't getting those kind of numbers from a Prius.


True, but lets face it, you'll have to fudge your tax returns to get the write-offs given the fact that you're using the vehicle for personal reasons ;-) If you obeyed the tax laws to the letter your write off might not be there ;-) I've been there, and done that. With a 2003 Expedition; which by the way, had lots of problems.

But even if you can legally take advantage of the tax laws, most cannot.
 
Originally Posted By: MrCritical
I'll stick by my story. The "bigger" makes no difference. Put the same amount of money in reducing weight that you put in multivalve engines, 6 speed auto transmissions, variable cylinder displacement, cleaner burning diesels, and hybrids. You'll beat CAFE regulations with ease.


amen
 
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