Law and Rights
Something quite extraordinary happened last week and hardly anyone noticed. Toyota became #1.
There was no fanfare. No press release. No party. It just quietly happened.
For 77 years General Motors had been the world's largest motor vehicle manufacturer. But on Wednesday, January 21, GM received the second installment of its federal survival loan and quietly slipped from the #1 spot to #2. That day, it rewrote the "end tag line" on its letterhead to read "One of the world's largest automakers."
Making the best of it, a GM sales analyst remarked that he didn't think being #1 means anything to consumers and that the focus is on "viability and profitability."
Meanwhile over at Toyota they announced that they will have their first year of annual operating loss in 70 years. That's when you know the economy is lousy: when the company that becomes #1 is still losing money. And on the tube? There's more rebates and incentives and zero interest rate loans from all of them.
Detroit, I know you're losing money, but giving away the inventory isn't the way to make a profit. Only a company accountant can make sense of this but one thing's for sure. What's good for GM is good for the country make not have been a true maxim, but it is true that what's bad for the country is bad for GM.
Maybe it's time to throw away the rebates. Maybe it's time to simply cut the price to the lowest it can get and just sell. All the game playing with rebates and incentives and all the rest just seems to be so much smoke and mirrors. And the rebate game became addictive to American car buyers. And that became addictive to Detroit. Now Detroit thinks that rebates are the primary way to sell cars and consumers have come to expect them.
It won't be easy to wean consumers off the rebate drug, but if Detroit provided the credit on fair terms (stop letting dealers play with the interest rates), increased quality, warranty coverage and length, and cut prices, we think American buyers would appreciate the honesty and come back.
American workers still know how to build better cars. If Detroit wants to survive, it better figure out how to sell them.
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For 2008 the five car brands with the best overall predicted resale values are Volkswagen, BMW, Acura, Honda and Porsche. Not a US label in the bunch. And what is ranked 5 to 10? It's Subaru, Lexus, Infiniti, Audi and Toyota. Again, not a US label...
- Detroit Is #2 In Us Sales
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Law and Rights
Toyota Quitely Wins #1 Spot
Something quite extraordinary happened last week and hardly anyone noticed. Toyota became #1.
There was no fanfare. No press release. No party. It just quietly happened.
For 77 years General Motors had been the world's largest motor vehicle manufacturer. But on Wednesday, January 21, GM received the second installment of its federal survival loan and quietly slipped from the #1 spot to #2. That day, it rewrote the "end tag line" on its letterhead to read "One of the world's largest automakers."
Making the best of it, a GM sales analyst remarked that he didn't think being #1 means anything to consumers and that the focus is on "viability and profitability."
Meanwhile over at Toyota they announced that they will have their first year of annual operating loss in 70 years. That's when you know the economy is lousy: when the company that becomes #1 is still losing money. And on the tube? There's more rebates and incentives and zero interest rate loans from all of them.
Detroit, I know you're losing money, but giving away the inventory isn't the way to make a profit. Only a company accountant can make sense of this but one thing's for sure. What's good for GM is good for the country make not have been a true maxim, but it is true that what's bad for the country is bad for GM.
Maybe it's time to throw away the rebates. Maybe it's time to simply cut the price to the lowest it can get and just sell. All the game playing with rebates and incentives and all the rest just seems to be so much smoke and mirrors. And the rebate game became addictive to American car buyers. And that became addictive to Detroit. Now Detroit thinks that rebates are the primary way to sell cars and consumers have come to expect them.
It won't be easy to wean consumers off the rebate drug, but if Detroit provided the credit on fair terms (stop letting dealers play with the interest rates), increased quality, warranty coverage and length, and cut prices, we think American buyers would appreciate the honesty and come back.
American workers still know how to build better cars. If Detroit wants to survive, it better figure out how to sell them.
Burdge Law Office
www.BurdgeLaw.com
Helping consumers protect themselves since 1978.
www.BurdgeLaw.com
Helping consumers protect themselves since 1978.
Subscribe in a reader- Gm Hurting
Good grief. General Motors is looking for a buyer for its headquarters building in Detroit. How bad is it getting? GM's spokesman Tom Wilkenson said "We have been looking for options to monetize the asset" which is code for sell it, mortgage it or...
- Rebate Or Best Interest Rate?
Do you take the rebate or the zero rate loan? Which is better for you? Manufacturers often try to boost sales by offering new car buyers either a rebate or "zero" (or low) rate financing, but it can be hard to figure out which is the better deal for you....
- Best Vehicle Resale Value Cars
For 2008 the five car brands with the best overall predicted resale values are Volkswagen, BMW, Acura, Honda and Porsche. Not a US label in the bunch. And what is ranked 5 to 10? It's Subaru, Lexus, Infiniti, Audi and Toyota. Again, not a US label...
- Detroit Is #2 In Us Sales
There is no joy in mudville... For the first time since US auto production began 102 years ago, more foreign-plated cars and trucks were sold in the US than were cars and trucks built by US companies. How in the world did the Big 3 get in this mess and...
- The World (of Car Sales) Is Flat
With sales stagnating and falling, car sales are flat no just in the US, but also all around the world right now. What does that mean for you? We'll talk about that in just a minute... For the first time, last month more American auto buyers bought...