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Thread: How dumb does it get

  1. #1
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    How dumb does it get

    Ford has matched GM's price discounts.

    Both were already bleeding from discounts and legacy costs to the point of unprofitability in their vehicle manufacturing divisions, now this?

    http://news.yahoo.com/s/nm/20050705/...d_discounts_dc
    These are my principles. If you don't like them I have others. ~Groucho Marx~

  2. #2
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    Gms move is understnadable. tehy have the cash to burn, and their only real hope of survivial is to steal a significant portion of Fords market share. Ford, on the other hand, in mathcing the deal, is just being stupid. They do not have the cash to burn.

    I think it has become clear that only one of the two will remain profitable. There are simply not enough people out there will to "buy american" to the exclusion of all common sense in picking a vehicle. Both companies have massive legacy costs, and in both cases they are primarlily the result fo mismanagement.

    Looking at japanese sales fo rthte last month, GM did not take from their business, they just took from ford. I think the worst case scenario here would be the prediciton at the end of the article to come true. If this will truly lead to a permanent, or semi permanent, price levcel for vehicles, bioth companies are screwed becuase neither one carries a hefty enough profit margin to take a substantial long term hit on per unit profitablity.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  3. #3
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    Well I think it's clear that the war between the two US automakers is on and in the end there can be only one. Too bad the both of them don't realize that if you've got your act together you can also compete with the Japanese automakers and not just with the other native.
    It's basically two American dogs fighting over a bone while the Japanese dog is laughing its XXX off.
    Eh, what's this? A Republican from Texas that actually makes sense and can speak English?

    http://www.ronpaul2008.com/html/Issues_fx.html

  4. #4
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    Quote Originally Posted by daewoo
    Gms move is understnadable. tehy have the cash to burn, and their only real hope of survivial is to steal a significant portion of Fords market share. Ford, on the other hand, in mathcing the deal, is just being stupid. They do not have the cash to burn.

    I think it has become clear that only one of the two will remain profitable. There are simply not enough people out there will to "buy american" to the exclusion of all common sense in picking a vehicle. Both companies have massive legacy costs, and in both cases they are primarlily the result fo mismanagement.

    Looking at japanese sales fo rthte last month, GM did not take from their business, they just took from ford. I think the worst case scenario here would be the prediciton at the end of the article to come true. If this will truly lead to a permanent, or semi permanent, price levcel for vehicles, bioth companies are screwed becuase neither one carries a hefty enough profit margin to take a substantial long term hit on per unit profitablity.
    I agree. Up until this year their finance subs were able to carry both companies. It looks like they both reached the point of reduced market share not allowing profitability at the same time, GM finally admitted their only hope was to take share from Ford, Ford copied the discounts and now we'll see who can survive the longest selling at a loss.
    These are my principles. If you don't like them I have others. ~Groucho Marx~

  5. #5
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    Quote Originally Posted by gamehuis
    Well I think it's clear that the war between the two US automakers is on and in the end there can be only one. Too bad the both of them don't realize that if you've got your act together you can also compete with the Japanese automakers and not just with the other native.
    It's basically two American dogs fighting over a bone while the Japanese dog is laughing its XXX off.
    More like Ford/GM fighting over a bone while Japanese dine on the good parts?
    These are my principles. If you don't like them I have others. ~Groucho Marx~

  6. #6
    deathlord52 Guest
    Both have to go back to their strengths - design. Stop with the bland cars that others compare unfavorably to the Asian cars. Build the good looking stuff, like the 300C and Mustang show.

    And make those 60+mpg cars NOW. They will be profitable, as would a 30mpg truck. But giving the same SUV to every brand, with different badging is staving off the inevitable. If a brand is failing cut it. Start with Buick, Mercury and GMC.

    ...and GM - force the union to go to normal benefits. Even w/the above you are dead w/o that concession.

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