Yea, I know. I cannot believe they are allowing this. The Chineese cars are very small, but very affordable. However, can the averaged size American fit in one? I'm five 10 1/2 @ 216 LBS. I do not know if I would be very comfortable.
I can't see how low labour costs are a factor for companies like Toyota and Honda, which after all are the ones with which Ford is competing. Japanese labour is expensive and so is US labour, a good deal of which is used by these two companies. Somebody else mentioned that Ford seems to be doing OK in Europe. This is true: Ford Europe has usually managed to make solid cars that meet the needs of local markets. Ford competes effectively with the Japanese on the other side of the Atlantic, they just don't seem to be able to do so in the US. Suss
You mean Opel's from Europe.....(most of the new Saturn line will be all GM unit Opel products from Europe) And this is what Ford sells to the EU market.......... Focus ST......... http://www.speedycars.net/files/wal...5-door_European_Version_2005_001_6F7A9111.jpg http://www.speedycars.net/files/wal...3-door_European_Version_2005_024_D5C83600.jpg http://www.speedycars.net/files/wal...3-door_European_Version_2005_032_4D258873.jpg http://www.ford.co.uk/ie/st_performance_vehicles/-/-/-/-/3/- ....and the soon to be sold 300 Hp AWD version Focus RS seen here as a test mule in final testing........... http://www.autoexpress.co.uk/images/front_picture_library_UK/dir_421/car_photo_210798_5.jpg http://www.autoexpress.co.uk/images/front_picture_library_UK/dir_421/car_photo_210795_5.jpg
Labor is important. Toyota has its Lexus division to make the extra $$$$$ so their profit margins can be thinner. Also selling 500,000 Camrys a year just in the US allows Toyota to even further undercut its price. Also, Toyota does not have to deal with UAW which could at times give a big and expensive headache. Also Toyota and Honda for that matter does not have to deal with American/Canadian workers who are more demanding and have a different work ethic than the Japanese. Since Toyota had started building vehicles in USA the numbers of recalls increased dramatically. Many people/mechanics are saying that Toyotas and Hondas are not what they used to be in the 80s and 90s. Ford is doing much better in Europe and they do make some good cars. I agree, it is the US where they lack. Hope they can fix this before it is too late.
Oh and I forgot about the new EU market 5-door Ford Mondeo..... http://www.worldcarfans.com/news.cf...try/acf/ford/2007-ford-mondeo-5-door-revealed http://www.worldcarfans.com/news.cf...try/acf/ford/2007-ford-mondeo-5-door-revealed we get the fusion.........yawn
With the Dems taking Congress, it will never happen. Ford will never go bankrupt. Especially now that 30,000+ hourly workers and 14,000 white collar workers have accepted buyouts. They are in terrible shape, but Chrysler was worse off in 81. This is politics.
You make some sensible points and I agree that labour is important - absolutely crucial in fact - but to get back the original argument, you simply can't credibly argue that Japanese labour is low cost. (Better managed, more flexible perhaps, but not cheap.) It seems to me that this is not the reason for the problems at US auto companies. You commented that the Camry and Lexus allow Toyota to compete more effectively. I agree that this may well be true, but why didn't Toyota's competitors do the same? They have been free to develop Camry-equivalents for the low end or luxury brands for the high end to improve the product mix. They haven't done that, or they have mismanaged existing luxury brands such as Cadillac and Jaguar. Failing to develop attractive new brands isn't about labour costs, it's about poor management. I have a lot of respect for many US companies, but very little for the auto and airline bunch. They just seem too parochial and inflexible to compete in a global market and the sooner both industries are restructured and consolidated the better for us, the consumers! Like others, I'm skeptical that the US government will allow Ford to collapse. US politicians love free markets until they start affecting their constituents. Suss (edited for spelling)
Today's volume: over 335 MILLION shares traded. Look at the volume the last 3 days... F took out 20 billion in loans recently, which ironically is bigger than their market cap. It would take a miracle for this co. to ever rebound....
a lot of big money is arbing the stock and the convertible bond issue. at least ford is getting prepared. gm is celebrating for some reason...??? the only lost 11 bill so far this year???