Quote:
Originally Posted by kane
I think the car companies can again be profitable. They are victim of the down economy and their own success. They succeeded in convincing much of the public that they needed to go out and buy some big ass SUV that will never so much as see a dirt road much less offroad. And it worked. People went out in droves and bought them. For several years it seemed like there was a competition to see who could own the biggest SUV on the block. The car companies loved it because the profit margin on those beasts is huge.
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I totally believe so, the question of high profit margins never came to my mind, while cars in US (esp. US, Japanese cars) are usually much cheaper than here in Europe.
Quote:
Originally Posted by kane
The problem was these cars cost so much people were up to their eyes in dept trying pay for them. Then gas hit $5 a gallon and people really had trouble affording them. Follow that with the economic problems and now people are wondering what to do. People need cars. People want to buy new cars. Those that own the SUVs will trade them in, but right now people are starting to trend back towards the more affordable gas saving cars and the domestic automakers were/are lacking behind some of the foreign companies when it comes to that type of car.
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Exactly, well I still can't get used to the fact that ANY US car should be small / economic, I actually love US cars, the more valve and more horsepower the better, but the affordability factor is kicking in.
How should their portfolio look like?
For example:
30 pct. big ass cars / trucks / sports cars / limousines
40 pct. middle / working class cars
30 pct. economic cars?
Can those economic cars be produced in cooperation with other producers (say from Europe) that have (even too much) know how with this?
How about those electro cars, is it really a wise bet?
Would anyone in your neighbourhood ever consider buying an electro car?
Quote:
Originally Posted by kane
I think if they can put together a line of cars that are of high quality and that people want to buy they can become profitable again. It isn't just the domestics that are hurting right now, most of the major car companies around the world are seeing their sales in a nose dive so part of fixing the auto industry problem is simply fixing the economy.
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I guess Volkswagen is about 20 pct. down or something, not a real difference in Europe, they're now subsiding, if you get rid of your old car and buy a new one.
Well I'm not a big fan of those super savy cars filled with electronics that's made in third world countries or Eastern Europe and where you can't replace a bulb without getting screwed by an "authorized" service provider.
I rather prefer older, reliable cars from one piece of metal - but that's what they're trying to avoid, they need to get people to buy new ones and bank on the service.
Quote:
Originally Posted by kane
People are not willing to go out and take on a $300, $400 or more a month car payment right now not knowing if they will have a job in 6 months. If the economy improves buyers will return and if the domestic companies can put together some appealing cars they can attract those buyers.
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How is the used cars market these days?