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View Diary: GM's posts record loss (250 comments)

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  •  $500 per car (3+ / 0-)
    Recommended by:
    Odysseus, DawnG, Dburn

    $500 has absolutely no effect on my car purchase decision. $5000 does.

    Traditionally (and I have experience dating back to the original GM compacts), small has been equated with cheap. The reasoning went that small car buyers were looking to save money so they wanted the cheapest car possible. So Detroit small cars were built with cheap fabrics, thinly padded seats, the cheapest suspensions, so hang handling or ride quality, cheap one lung engines and no luxury features. The Japanese built the best small cars they could (in the '80s, forget the Toyota Corona) instead of the cheapest.

    Nancy Pelosi is nothing like MY Sicilian grandmother!

    by Anthony Segredo on Fri Aug 01, 2008 at 03:27:40 PM PDT

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    •  GM Had some Cheap Mid-size (0+ / 0-)

      That didn't do so hot. The re-sale value was horrendous. I have a 95 Toyota Corolla that's would get more than a 2003 Chevy - (Name escapes me-but it is a mid-size model). I was thinking of getting one then I read user reviews and just recoiled. I could see 4 Figure repair bills dancing before my eyes. But it had features. ...(:-/)

      I have Hyundai Santa Fe 4 Cylinders 2 wheel drive. I got it for $4,000 with 48,000 miles on it as people were desperate to unload. I use it for transporting materials I can't fit in my Toyota. Gas Millage is probably high teens. I drive it less than a 1000 miles a year. I've had it for almost 2 years and No problems. It's probably the nicest vehicle I've owned except for a 85 Subaru I bought new for $12,500 in the 80s.

      Japanese cars hold a high resale value. I refuse to pay 25% of what my house cost for a car. That's why I think GM is going to have a problem putting all their eggs into the $25,000 bracket with prices on homes dropping like a rock. People are not going to be quick to invest in  a high price, unproven fast depreciating  piece of metal , when the used market is stuffed with all kinds of decent vehicles at affordable prices especially if their home value and other assets have self destructed. The bottom isn't expected until 2010 which means credit will be tight.

      They sold GMAC (They got into Sub-prime mortgages which is why they were able to show a profit in 06)  so they can't finance their own vehicles. Leasing is being phased out. The Japanese, Koreans and Chines are all over the $10,000 to $20,000 price range. GM had one car to sell for $12,500. I think they are phasing that out in a year.

      No one is going to be saying "Buy American" like they were in the 80s to save American jobs. Not after management has treated all American workers like shit. People have wizened up since then and realize empty phrases like that is means spending money to prop up management. CEO Rick Wagoner raked in 15 Million last year as the company lost 39 Billion.

      The Japanese and Koreans will employ plenty of American workers. GM won't be bailed out. This is a different time and place. They have huge liabilities as does Ford. The leverage ration for a manufacturer is huge. Over 23:1 in Ford's case. So it's doubtful that anyone will buy them out unless it's through a asset sales and bankruptcy court.

      Support Col Hackworth's because tomorrow is just a promise, not a guarantee

      by Dburn on Sat Aug 02, 2008 at 10:52:17 AM PDT

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      •  Probably a Malibu (0+ / 0-)

        Vastly different from the extremely popular pre-OPEC Malibu. An all new Malibu designed in Europe was introduced in 2004, sadly its mileage was nothing to write home about. GM stroked the 3.5L engine of that Malibu to 3.9L and used it to replace the venerable Buick 3.8L in the Impala, reducing the Impala's gas mileage. What do those exec's smoke? It's a bad trip whatever it is.

        I remember the Oldsmobile campaign "Not your father's Oldsmobile" as they phased out the still popular RWD Cutlass for yet another cheaply built FWD econobox. I remember a colleague's comment at the time,"If it was my father's Oldsmobile, I'd buy it!", referring to the 1960's stylish sport luxury offerings.

        Hyundai is interesting. I've been very attracted to the Sonata which seems to offer a boatload of gadgets (I'm a sucker for them) with a tremendous warranty for a very reasonable price. When GM dies, I'll probably go with them.

        Nancy Pelosi is nothing like MY Sicilian grandmother!

        by Anthony Segredo on Sun Aug 03, 2008 at 06:31:48 PM PDT

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