The issue with GM and Ford is that they didn't leverage and build their product offering off their global network of vehicles. Remember Europe and Australasia were already paying the equivalent of $4 gallon 6 years ago. Hell in New Zealand gas today costs $2/litre or $8/gallon equivalent and wouldn't you know it Ford offers small efficient vehicles based on Ford's European and Australian product line. Ford US is now in panic mode and srambling to get the European Ford Fiesta into their US product offering. http://www.ford.co.nz/servlet/ContentServer?pagename=DFY/NZ http://www.ford.co.uk/ie/all_cars/-/-/-/-/-/- http://www.autoblog.com/2008/02/14/geneva-2008-it-may-have-verve-but-you/
You mean consumers will take a bath on trading in their SUV and incur a new $500/mo payment just to save $20/week on gas?
its funny how everytime we think of getting rid of our expedition with 200,000 miles on it - the math just doesn't make sense. We need a vehicle which can fit 3 cars seats a stroller and assorted kid gear. My only concern is safety and that truck was made for towing. heavy duty everything and it just keeps passing inspection. we were told the other the day the transmission is perfect. Something to be said for not buying underpowered vehicles. Sure I want to save on gas but how much longer does our investment last? I hate seeing the gas bill, but 350 - 400 month in gas is probably a lot les than car payment and with gas savings.
If it works for you practically and financially, go for it. There is obviously still going to be a market for SUVs because people due need them. I just think the market will get a lot smaller plus no more buying a new car every 3 years to stay in fashion.
Yeah right, blame it on oil prices. http://paultan.org/archives/2008/05/14/new-generation-toyota-alphard-and-vellfire/
gnome, my Sis and Bro-In-Law did almost exactly that. Gas bill was $100 a week. New Car pymt. $100 a week. Updated gas bill is now $28 a week. And get this, they didn't even trade in his F350 Ford Diesel!!!!
It might be a good time to pick one up. Once the oil bubble pops, these things will go back up in value, since there won't be any more built.
GM BK? With 25Billion in cash on the ballance sheet? And a pension liability that they will write down, write off, cram down, renegotiate , litigate or re-repudiate. I don't think so.
We can only hope for crude over $150 to hasten the bankruptcy proceedings. These american auto execs are shit-for-brains dumb and have been for at least the past 40 years - they never learn. They've been getting WTF PWNed for 40 years now. They basically conceded the car market to the foreigners for the past 30 years and pinned their hopes on minivans (Chrysler) and light trucks/SUVs (GM/F). And now their getting WTF PWNed by crude oil traders everyday now. Someone stop the fight, its getting too ugly. Foreign auto makers produce just as many cars in america, and they have to deal with the unions too - but their execs aren't shit-for-brains-dumb like the americans.