Discuss Detroit Archives - Beginning January 2007 GM, Ford Sales Skid Previous Next
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Karl
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Username: Karl

Post Number: 6061
Registered: 09-2005
Posted on Thursday, February 01, 2007 - 4:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I really despise getting emails like this one, sorry everyone:

NEWS ALERT
from The Wall Street Journal

Feb. 1, 2007

GM said its U.S.light-vehicle sales fell about 17% in January, as both car and truck sales declined. Ford said its monthly sales of cars and light trucks in the U.S. skidded 19%, while Toyota announced a 9.5% increase for the month, the latest indication that the Japanese manufacturer is overtaking Ford at No. 2 on the U.S. sales list.

FOR MORE INFORMATION, see:

http://online.wsj.com/article/ SB117027359718494031.html?mod= djemalert
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Cambrian
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Username: Cambrian

Post Number: 552
Registered: 08-2006
Posted on Thursday, February 01, 2007 - 5:36 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Attributed to decreased fleet sales to rental car companies I heard on the radio. What they did not clarify was, are the rental companies now adding jap cars to their fleets, or just not adding many new cars at all to their fleets?
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Livernoisyard
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Username: Livernoisyard

Post Number: 2308
Registered: 10-2004
Posted on Thursday, February 01, 2007 - 5:44 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The rental cars were essentially the lowest-equipped vehicles for those models. Meaning: very little to no actual profit from that sector.

When facing bankruptcy, it's better for GM and Ford to concentrate on profits instead of on vehicles sold and market share. They should produce vehicles that sell plus make a better ROI. After all, Ford is literally betting the farm this time. If Ford fails, the ownership of its assets will transfer to their creditors this time around.
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Mod
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Username: Mod

Post Number: 88
Registered: 07-2004
Posted on Thursday, February 01, 2007 - 5:47 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Lower fleet sales with Ford had to do with the end of the Taurus.
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Jtw
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Username: Jtw

Post Number: 110
Registered: 06-2005
Posted on Thursday, February 01, 2007 - 6:03 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

so what you're saying is that Lower fleet sales with Ford had to do with the end of the Taurus.
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Rrl
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Username: Rrl

Post Number: 728
Registered: 12-2003
Posted on Thursday, February 01, 2007 - 6:03 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Mod, go back & delete the extras if you wish. Use the little X icon in the upper RH corner of each post. Easy.
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Scottr
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Username: Scottr

Post Number: 207
Registered: 07-2006
Posted on Thursday, February 01, 2007 - 7:05 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

GM sold less to the rental companies intentionally, it was not a choice by the rental car companies. They are sold at little profit, and lowers the brands' value (both in the sense that 'who wants to buy a rental car' and the actual resale value) so GM has made the decision to cut these sales drastically.

Not so sure about Ford's excuse, I'm a GM guy myself.
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Cambrian
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Username: Cambrian

Post Number: 555
Registered: 08-2006
Posted on Friday, February 02, 2007 - 11:11 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

So the Japanese pick up the slack in the absence of US cars available to rental companies and post a gain while the domestics post a loss as a result. How is this a good thing?
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Mod
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Username: Mod

Post Number: 92
Registered: 07-2004
Posted on Friday, February 02, 2007 - 11:33 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

thx Rrl
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Livernoisyard
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Username: Livernoisyard

Post Number: 2310
Registered: 10-2004
Posted on Friday, February 02, 2007 - 11:42 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

So the Japanese pick up the slack in the absence of US cars available to rental companies and post a gain while the domestics post a loss as a result. How is this a good thing?


Duh! What's wrong with GM or Ford making a profit? The former ill-conceived business models at Ford or GM where they kept pumping out vehicles won't fly any longer now that they are both facing bankruptcy.

Manufacturing more of anything probably pleases the UAW, but selling stripped-down rental vehicles has been a money-losing proposition.

Besides, selling poorly equipped vehicles to rental agencies does not present those same models when typically equipped in a good light. Those mental images reek of low quality and blandness. Not good advertising value...

It's time for UAW members to realize that lower production means fewer UAW workers needed (and less overtime) at both Ford and GM, plus DCX too.

(Message edited by LivernoisYard on February 02, 2007)
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Iheartthed
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Username: Iheartthed

Post Number: 352
Registered: 04-2006
Posted on Friday, February 02, 2007 - 11:43 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Well, wasn't Hertz the sole purchaser of Ford's products for their fleet?

And for some reason I recall Ford owning Hertz at one point, is that correct? If so, then they were essentially selling to themselves all along, right?
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Cambrian
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Username: Cambrian

Post Number: 556
Registered: 08-2006
Posted on Friday, February 02, 2007 - 12:05 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"It's time for UAW members to realize that lower production means fewer UAW workers needed (and less overtime) at both Ford and GM, plus DCX too"


I've heard this philosophy before. In essence GM and Ford believe they can return to profitability by slashing overhead costs, and getting rid of unneeded capacity. This philosophy then assumes there is bouko profits to be made producing speciality vehicles for people with lots of money. GM and Ford will be one fifth the size of Toyota who will be producing cars for the masses. But not too worry, the share holders of the former big three will be rolling in the dough made by selling Drs a new Escalade/ Navigator every year. You know who else believed in these philosophies? The guys running Packard, Peirce Arrow and Auburn / Cord / Duesenberg.

These days all stripped down means is wheelcovers vs aluminum rims, and cloth seats instead of leather. Every rental I've had was equipped with AC and Power windows.
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Fury13
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Username: Fury13

Post Number: 1314
Registered: 10-2003
Posted on Friday, February 02, 2007 - 12:26 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Great points, Cambrian.

Within 10 years, Ford, Mercury and Lincoln may very well go the way of Hudson, Studebaker and Packard.

All because Ford failed to anticipate shifting tastes/expectations of the mass US market.
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Livernoisyard
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Username: Livernoisyard

Post Number: 2313
Registered: 10-2004
Posted on Friday, February 02, 2007 - 12:31 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

As mentioned before, the US vehicle industry is going the way (meaning: away) of the consumer electronics industry back over a generation ago.

Probably too many DY posters are too young to have ever known of the former major US players back then--all gone now.
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Cambrian
Member
Username: Cambrian

Post Number: 557
Registered: 08-2006
Posted on Friday, February 02, 2007 - 12:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

If you read 'Collectible Automobile' magazine, which is a top shelf publication IMO, it tells that a lot of companies where not profitable until, or were saved from bankruptcy by offering more affordable models the working class person could afford. The Packard 120 saved that company's ass during the great depression. Same story with GM offering junior brands like LaSalle and Pontiac. It appears the people running the domestics now are ignoring those history lessons.

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