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GM is making cuts to jobs & product

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  • GM is making cuts to jobs & product
    34 FORD coupe...Cleveland POWERED

    it`s nice to be important but it is more important to be nice.


  • #2
    Now the ceo is going to Washington. To beg for more government welfare again?
    '70 Mach 1 - '72 Sprint - '94 F-150 XL -'97 E-150 - '18 Edge SEL AWD

    My Mach's restoration progress
    My Sprint's restoration progress
    ĒMercy for the guilty is cruelty to the innocent.Ē ~ Adam Smith


    • #3
      You know, I think we are seeing a total change in the US auto industry. First Ford, now GM dumping sedans and going full bore SUVs. I donít think even that will be enough.

      About 35 years ago, a coworker and I were discussing autos and the industry. Sales were in a slump then, models that were hot suddenly filled lots unsold. And it wasnít just new vehicles, used lots were full,too. We guessed there were probably 15 or 20 vehicles per person sitting on a lot somewhere. Just think how many more lots there are now, how much bigger they are, and how much more they cost. I bet there are 30 to 40 vehicles to every driver out there. Itís really simple....

      We have a glut of vehicles, new and used.

      People who used to trade every year now hold out to two or three years. Vehicles last longer, so they stay in use longer. 100,000 miles used to be considered the life of one, now they last two or three times that. Where a vehicle used to have maybe two or three owners, now they may have five or six. Think about how many sales lots are in your town, and how many vehicles they have for sale. Something in a price range for most everyone. And then add in all the private sales. Mind boggling figures! And a lot of young folks donít even get a drivers license anymore or buy vehicles, preferring ride sharing of some sort.

      Our success has been our downfall.

      We have perfected production to high levels only dreamed of by Henry Ford. We have increased quality,fit and finish and extended longitivity of life to many times what it was just 20 years ago. We have spit out production in numbers far exceeding demand in search of higher and higher profits. There are enough vehicles in the USA that all the car makers could take a 5 year vacation and not build a thing and there would still be a glut of vehicles.

      We forgot the laws of supply and demand.

      After WWII, they couldnít make enough vehicles fast enough to meet the high demand. In the late 1950ís it cooled a bit, but wound back up in the mid 1960ís. But the auto makers pressed on, increasing production, needed or not. Then the oil embargo in the 1970ís changed the industry, big cars went unsold in favor of econoboxes. And they threw everything into small cars, leaving families few choices, large luxury cars or vans. Then SUVís came on the scene, and families flocked to them as a sensible sized family vehicle. But not everyone needed a full size SUV, so then they started pushing the small and mid sized SUVís, ignoring the smaller market until somebody come up with the idea of calling a small wagon a ďcrossoverĒ. Now there is a vehicle in every size you can think of, but buyers are fickle. They are tired of what they are seeing, and many donít want the huge price tags, they are buying used and keeping vehicles longer. So the auto makers are searching for the next fad. They are thinking it will be hybrid and self driving vehicles.
      They are putting all their eggs in that basket. I donít think it will work.

      Very few people want self driving cars or hybrids. Itís a niche market.

      Until the current glut of vehicles shrinks, new sales will continue to suffer. And until the factories start putting out designs that excite people, impulse buying will be very small. Affordability figures into the equation,too. The smaller manufacturers who produce smaller numbers will continue to do good, while the large guys are floundering around flooding the market with unwanted designs will continue to lose sales and market share. And only they can pull themselves out of it. I know there are other factors such as unions and tariffs that have a negative effect, but they are small beans compared to the flooding of the market.
      ----1999 F150 XLT Lariat Super Cab 4X4 5.4----
      -----1947 Lincoln Zephyr Coupe 5.0-----
      -----2005 Expedition Eddie Bauer 5.4----
      " Sometimes you fix the car, sometimes the car fixes you" Steve L.

      "Do not let anyone tell you it cannot be done. No challenge can match the heart and fight and spirit of America". President Donald J. Trump