Bankrupt US Automakers

[ccm911]

Now, while I am always quick to smack down the American car folks, I get the feeling that we are now entering a pretty bad scene.  And who do we blame?  Most likely, everyone involved, from the Unions through upper Management.  It seems like a small miracle that Chrysler and GM lasted as long as they did.  I mean, come on now, can we really call the junk known as the K-Car, the last salvation of Chrysler?  Or the X-Cars from GM? 

I was reading the comments on the New York Times site, and the overwhelming response from the readers was complete hatred towards GM Management, Unions, and the products they produce.

By producing such garbage in the eighties, when many of us were just begining to drive, the American manufacturers effectively alienated an entire generation of future car buyers.  And it didn't take a crystal ball to see this all coming.

Looks like there is more than enough blame to be passed around on this one.

Just a shame that so many innocent working folks had to be affected by this mess. 

[MikeKling]

GM?  O, you're talking about Government Motors.

[Darren]

A lot of those "innocent folks" took out home equity loans or refinanced cash out to be able to buy cars and keep things going.  If it wasn't for all of that none of these companies would be in the current situation, so there is blame to go around but it points in every direction, the government, the banks, the car manufacturers, and individuals.

I have a "friend" who bought a $400k house in Florida that depreciated to $200k and he walked away from it with -$200k equity.  We should be punching those guys in the nuts.

[Darren]

ccm911 wrote:

By producing such garbage in the eighties, when many of us were just begining to drive, the American manufacturers effectively alienated an entire generation of future car buyers. And it didn't take a crystal ball to see this all coming.

Also, I don't know about you but when I started driving I wanted cars from the 70's and 60's anyway Nostagically I think that's what most people would like American cars to be like, but the manufacturers don't get it.

I want an American tuner car, turbo, lightweight, something I can get up to 400 hp for under $14k total. That has to be possible for them to make! Oh and ditch the live axle, please!

[vego]

Darren wrote:

ccm911 wrote:

By producing such garbage in the eighties, when many of us were just begining to drive, the American manufacturers effectively alienated an entire generation of future car buyers. And it didn't take a crystal ball to see this all coming.

Also, I don't know about you but when I started driving I wanted cars from the 70's and 60's anyway Nostagically I think that's what most people would like American cars to be like, but the manufacturers don't get it.

I want an American tuner car, turbo, lightweight, something I can get up to 400 hp for under $14k total. That has to be possible for them to make! Oh and ditch the live axle, please!

Darren I cant agree with you more! Here is a good example, the European Ford Focus RS.. Why are they not making cars like this in the USA??

http://www.motortrend.com/roadtests/hatc...index.html

[Darren]

So why not? They were totally oblivious to the Japanese tuner market.  The problem now is that noone has money to buy any cars!

They can't market to kids, they can only market to people with stellar credit and people who want payments.  I'm done with it all, no more payments!!!!

My solution was to build an older car to drive on the street.  It's a 1991 318is, that i had painted e36 purple.   What do you think?




Plans are to have Minkin dye the rear seat black, mount my stock 996 front seats, and install black door panels which I already have.  I'm hoping for +30 mpg

 

[ccm911]

Wow Darren.  Awesome car!!!  That should prove to be loads of fun.  But since I already call Myles' car "Barney", what can we call yours?

As for car payments, you are so spot on.  I haven't had a payment in over seven years.  In fact, when you look at the year one depreciation on a new car it is shocking...Satanic even.

But I guess these fancy Americans need their new cars every year.  I mean, I love cars more than most, but at the end of the day, I see them as a tool.  While you may as well buy the best tool, it needn't be expensive.

The reason I like to buy higher mileage German cars is that for the most part, the owner before me was probably fortunate enough to see to the maintenance, and the depreciation, if you buy on the "flat spot" is negligible.

[bobt993]

Hey Chris, 

Keep in mind Porsche, the most "profitable" car company needed a 13 billion dollar bail out loan just 2 months ago.  They screwed up with their over optimistic takeover of VW and now are broke.  If Merkel had not called in favors, they may have gone into 13 end of March.

[ccm911]

Bob:

I really think that the Cayenne really put the whammy on Porsche.  They in essence "got too big for their britches" by trying to be everything to everyone.

Why couldn't they have just rolled along focusing on what they do best...Making awesome, durable sportscars?