[rogerhb]

Ford heralds slow demise of SUV

$this->bbcode_second_pass_quote('', 'M')ark Fields, who runs Ford's US business, said consumers would move away from SUVs to smaller cars in what he characterised as a "tectonic shift".

[ohanian]

$this->bbcode_second_pass_quote('rogerhb', '[')url=http://news.bbc.co.uk/2/hi/business/4777303.stm]Ford heralds slow demise of SUV[/url]

$this->bbcode_second_pass_quote('', 'M')ark Fields, who runs Ford's US business, said consumers would move away from SUVs to smaller cars in what he characterised as a "tectonic shift".

[sicophiliac]

$this->bbcode_second_pass_quote('Eli', 'W')ell that is better than what Richard Wagoner is saying over at GM.

I just read an article in USA Today that quotes him as saying he is not worried about 4 dollar gas. He sites some stupid study that says people plan on keeping their current life style even if there is an economic downturn. He also says how they have been surprised at well their truck sales have been over the past year,but says nothing about their large SUVs.

Things must be so bad over at GM that they are in mass denial.

[Seraphim]

When the big 3 go down it will be hell for the US economy. However, if they are too stupid to 'get it' then they deserve what ever befalls them.

[Zardoz]

$this->bbcode_second_pass_quote('rogerhb', '[')url=http://news.bbc.co.uk/2/hi/business/4777303.stm]Ford heralds slow demise of SUV[/url]

$this->bbcode_second_pass_quote('', 'M')ark Fields, who runs Ford's US business, said consumers would move away from SUVs to smaller cars in what he characterised as a "tectonic shift".

[TommyJefferson]

Somebody here on po.com turned me on to this blog...

http://www.thetruthaboutcars.com

He has an on-going series documenting the General Motors death spiral. It's a good weekly read. Good bits from this week:

"...At the end of July, in an industry where a 60-day supply is an acceptable maximum, GM dealers were stuffed to the gills with Tahoes (82 days), Yukons (89 days) and Chevrolet Suburbans (75 days). Although the figures are not far off last year's, these are GM's "new" trucks. August is going to be a bitch.

...Yesterday, The General’s GMAC finance unit signed a three-year, $10b funding facility with a Citigroup subsidiary. Four billion dollars of the money falls into a brand new category for GMAC: “unrated notes”. Unrated notes are paper representing loans that are so far outside traditional credit parameters that the vast majority of insitutional investors are literally prohibited from buying them.

Translation: GM’s “Zero Percent for Deadbeats” summer blowout left GMAC with billions of dollars of risky loans."

[pup55]

I know I will not get much agreement on the board for either Ford or GM...

But I kind of feel sorry for them, in a way.

Up until a year ago, their focus groups, particularly in the hillbilly states, were telling them that people still wanted SUV's, which they did a good job of producing.

Wagoner was on CSPAN the other day, saying something to the efffect that he is the nation's largest buyer of private health insurance, and is now paying pensions for 1 million people over 65 years old. I believe the statistic is still true that the pension/health insurance cost per vehicle right now is higher than that of steel for the legacy US producers. For GM, some of the recent press releases suggest the cost of $5.5-6 billion per year. That's enough, every year, to build a nice new auto assembly plant somewhere. I understand that GM is the world's largest purchaser of Viagra, which is fitting.

Their competitors, Toyota and Hyundai have been building modern, efficient, highly automated non-union plants, with the help of generous government subsidies (at the state and local level). They can do this because the normal rules of capital investment are different for Japanese and Koreans than they are for the US, since they take a longer-term view of this type of investment decision, plus Japanese interest rates are still at or near zero.

Anyway, what will happen: At some point, both of these companies will declare bankruptcy, and pull the plug on these millions of retirees and spouses, both medical insurance and pensions will go bye-bye. There will be an unprecedented uprising, in which the elderly will be seen taking into the streets in wheelchairs, etc. to protest this. These are the same people that did all of the strikes in the early 60's, complete with the national guard, etc. so you know they have it in them. The US government will, indeed, step in to bail out the pension plans and the medical for this crew.

They will shut all of their union plants. They will open new, automated plants in whatever little community, in a traditional non-union type state, that gives them the biggest incentive to relocate. I am thinking Alabama at the moment.

They will build the same models that they produce in Europe, which at least in the case of GM, are actually fun, attractive, energy efficient cars, plus develop some new ones.

At some point, after the restructuring, a Chinese or Japanese auto manufacturer with deep enough pockets will attempt a buyout of one or the other or both. Reason: to get the dealer network.

And, that will be that. The execs and engineers and administrative assistants in Detroit will get jobs at Subway or someplace, and the profits will be made in China. This will go on until we can no longer afford even to buy Toyotas in this country. One thing may save us, though. The Chinese still do not make cruise missiles like we do.

[Zardoz]

Gloom, doom, etc.:

Ford slashes production

This is very sad.

[Fergus]

http://news.yahoo.com/s/ap/20060818/ap_ ... ion_cuts_5

Another story about the deeping cuts Ford is facing.

If this is not another nail in the coffin, its clearly a signal the coffin lid is about to close. Almost ready for burial!

[joewp]

$this->bbcode_second_pass_quote('rogerhb', '[')url=http://news.bbc.co.uk/2/hi/business/4777303.stm]Ford heralds slow demise of SUV[/url]

$this->bbcode_second_pass_quote('', 'M')ark Fields, who runs Ford's US business, said consumers would move away from SUVs to smaller cars in what he characterised as a "tectonic shift".

[lateStarter]

So, part of the new plan, is to start building 6.4L 'diesel' V8 pickups instead of the current 6.0L gasoline versions. Brilliant! How much do these guys get paid for this stuff? Obviously, not enough.

Apparently, all Americans really need 8.0L biodiesel PU's to get the kids to soccer practice. Don't worry, Africa will provide the fuel...

[sciencegirl]

The Fnord motor company has always been apart of the illuminati anyways.

[Zardoz]

$this->bbcode_second_pass_quote('lateStarter', '.')..start building 6.4L 'diesel' V8 pickups instead of the current 6.0L gasoline versions...

[Lighthouse]

$this->bbcode_second_pass_quote('lateStarter', '.')..start building 6.4L 'diesel' V8 pickups instead of the current 6.0L gasoline versions...

[TommyJefferson]

$this->bbcode_second_pass_quote('lateStarter', 'p')art of the new plan, is to start building 6.4L 'diesel' V8 pickups instead of the current 6.0L gasoline versions. Brilliant!

[napoleon]

I never liked Ford.





I like Henry Ford's attitude towards mindless working masses.



But I never liked Ford.

[Zardoz]

$this->bbcode_second_pass_quote('napoleon', '.')..I like Henry Ford's attitude towards mindless working masses...

[Dreamtwister]

GM isn't much better. Didn't they just announce that they were re-releasing the Camero with a V8?

Tough times? What tough times?

[napoleon]

$this->bbcode_second_pass_quote('Zardoz', '')$this->bbcode_second_pass_quote('napoleon', '.')..I like Henry Ford's attitude towards mindless working masses...

[lateStarter]

$this->bbcode_second_pass_quote('TommyJefferson', '')$this->bbcode_second_pass_quote('lateStarter', 'p')art of the new plan, is to start building 6.4L 'diesel' V8 pickups instead of the current 6.0L gasoline versions. Brilliant!