J
SavannahMann
Really Experienced
- Joined
- Jun 24, 2007
- Posts
- 110
The problem is systemic in the American Automotive Industry
Four years ago, when I bought my last new car, I searched high and low for information to do my comparison. After looking at everything, I settled on a Kia Sedona.
It was going to be roughly $15,000 less than the Ford or GM vehicles, and had roughly three times the warranty. Ford for example, had 3 years 36,000 miles compared to the 10 year 100,000 mile warranty that Kia offered.
Fifteen thousand dollars for a similar vehicle with similar options. Think about that for a moment. I could buy another car for what I'd had to pay to get the American Car. So for the price of two cars, I could get one. What kind of an idiot would I have to be to do that? What kind of flaming moron would pay twice as much for something? Apparently, not too many considering the state that the American Auto industry is in. Then you add in the fact that the Ford was expected to last roughly one third as long, and before long, you have to be approaching the legal definition of insanity to consider purchasing the American Car arguing that it's better.
So what needs to happen to the American Auto Industry? Simple, they need to declare Bankruptcy, and then come up with a plan to make themselves competitive again. It's painfully obvious that throwing money at it won't make the problems go away. That's been tried, and we still have the war on drugs, poverty, and more failed programs that we throw money at every year. The Onion joked that the Money Hole was an American Tradition. It is, we just call it Entitlements instead of a Money hole.
The shambles that is the American Economy needs to finish shaking itself up, and then when it reaches near the bottom, start building again, this time based upon logical and sustainable ideals. The creeping ideals of Socialism need to be thrown under the bus, and run over repeatedly. We need to admit that the nation has bought into a Madoff style Ponzi Scheme called Social Security, and we need to seriously start to consider alternatives before the nation is forced to admit it's bankrupt.
It is Bankrupt friends. Do you realize that we owe more than we make? Think about this for a moment. We are paying out more money than the entire nation made last year. The earnings of every man and woman, every single dollar they made, is less than the debt. How long before our Creditors demand payment of at least the interest? How long before the Creditors demand something for their money?
Four years ago, when I bought my last new car, I searched high and low for information to do my comparison. After looking at everything, I settled on a Kia Sedona.
It was going to be roughly $15,000 less than the Ford or GM vehicles, and had roughly three times the warranty. Ford for example, had 3 years 36,000 miles compared to the 10 year 100,000 mile warranty that Kia offered.
Fifteen thousand dollars for a similar vehicle with similar options. Think about that for a moment. I could buy another car for what I'd had to pay to get the American Car. So for the price of two cars, I could get one. What kind of an idiot would I have to be to do that? What kind of flaming moron would pay twice as much for something? Apparently, not too many considering the state that the American Auto industry is in. Then you add in the fact that the Ford was expected to last roughly one third as long, and before long, you have to be approaching the legal definition of insanity to consider purchasing the American Car arguing that it's better.
So what needs to happen to the American Auto Industry? Simple, they need to declare Bankruptcy, and then come up with a plan to make themselves competitive again. It's painfully obvious that throwing money at it won't make the problems go away. That's been tried, and we still have the war on drugs, poverty, and more failed programs that we throw money at every year. The Onion joked that the Money Hole was an American Tradition. It is, we just call it Entitlements instead of a Money hole.
The shambles that is the American Economy needs to finish shaking itself up, and then when it reaches near the bottom, start building again, this time based upon logical and sustainable ideals. The creeping ideals of Socialism need to be thrown under the bus, and run over repeatedly. We need to admit that the nation has bought into a Madoff style Ponzi Scheme called Social Security, and we need to seriously start to consider alternatives before the nation is forced to admit it's bankrupt.
It is Bankrupt friends. Do you realize that we owe more than we make? Think about this for a moment. We are paying out more money than the entire nation made last year. The earnings of every man and woman, every single dollar they made, is less than the debt. How long before our Creditors demand payment of at least the interest? How long before the Creditors demand something for their money?
Boxlicker101
Licker of Boxes
- Joined
- Apr 5, 2003
- Posts
- 33,665
Handprints
Literotica Guru
- Joined
- Jul 5, 2007
- Posts
- 547
Puts congress in an interesting position, doesn't it?
"We are only giving you this money on a temporary basis and we expect to receive a full commercial return for it. Also, you shouldn't spend any of the money on anything that's likely to improve your profits or better enable you to qualify for commercial funding in the future..."
There's only two ways to do a bailout: either treat the recipient like your junkie brother in law or treat him the same way a private equity guy treats an underperforming company. In the first case, kiss the cash goodbye and change your phone number/locks. In the second, cut - to the bone - anything incapable of turning a profit and throw every remaining resource at the things that do. It's neither theoretically nor practically possible to do both at once.
Full disclosure: I consider all US auto makers to be, until proven otherwise, junkie brother in laws. Same for about half the banks that are being publicly funded in the US right now. The other half, with luck, will pay enough back to somewhat defray the costs of handouts to the first half.
"We are only giving you this money on a temporary basis and we expect to receive a full commercial return for it. Also, you shouldn't spend any of the money on anything that's likely to improve your profits or better enable you to qualify for commercial funding in the future..."
There's only two ways to do a bailout: either treat the recipient like your junkie brother in law or treat him the same way a private equity guy treats an underperforming company. In the first case, kiss the cash goodbye and change your phone number/locks. In the second, cut - to the bone - anything incapable of turning a profit and throw every remaining resource at the things that do. It's neither theoretically nor practically possible to do both at once.
Full disclosure: I consider all US auto makers to be, until proven otherwise, junkie brother in laws. Same for about half the banks that are being publicly funded in the US right now. The other half, with luck, will pay enough back to somewhat defray the costs of handouts to the first half.
J
JAMESBJOHNSON
Guest
HANDPRINTS
When Americans riot in the streets, a lot of the nonsense and abuse will cease. But for now Bush & Company are simply escorting the 1st class passengers to the lifeboats.
When Americans riot in the streets, a lot of the nonsense and abuse will cease. But for now Bush & Company are simply escorting the 1st class passengers to the lifeboats.
R. Richard
Literotica Guru
- Joined
- Jul 24, 2003
- Posts
- 10,382
Some time back, Chrysler was loaned money so that they could survive. The did survive, then, and paid the money back.
J
JAMESBJOHNSON
Guest
RICHARD
Chrysler survived because it bought JEEP, created the mini-van for soccer moms, and built disposable pickups. My 1978 Plymouth was a piece of shit, and turned me off to Chrysler forever.
My son-in-law bought a new Dodge truck that went thru 3 transmissions before he traded it for a Chevy. My girlfriend has a new Chrysler Sebring thats on its 2nd transmission within 3 months.
Forty years ago all the Detroit car builders used tried & true engines and transmissions that lasted forever. About the time Detroit started with the pollution control crap, things went to Hell....1974, I think it was.
Chrysler survived because it bought JEEP, created the mini-van for soccer moms, and built disposable pickups. My 1978 Plymouth was a piece of shit, and turned me off to Chrysler forever.
My son-in-law bought a new Dodge truck that went thru 3 transmissions before he traded it for a Chevy. My girlfriend has a new Chrysler Sebring thats on its 2nd transmission within 3 months.
Forty years ago all the Detroit car builders used tried & true engines and transmissions that lasted forever. About the time Detroit started with the pollution control crap, things went to Hell....1974, I think it was.
Boxlicker101
Licker of Boxes
- Joined
- Apr 5, 2003
- Posts
- 33,665
Actually, Chrysler bought out AMC, which made Jeep. They had other assets, including the plant where my father and brother worked. Since then, they have merged, or formed some other business arrangement with Daimler.
jeninflorida
Literotica Guru
- Joined
- Feb 17, 2003
- Posts
- 22,463
well the parent company that owns Chrysler has or did have a billion in cash a few months ago...actually the parent company of Chrysler has a big investment in GMAC and that is part of the reason for the push to sell to GM
J
JAMESBJOHNSON
Guest
BOX
Yep. Chrysler kept AMC's good stuff and liquidated the rest. AMC did the same to Kaiser and Hudson and Willys.
The last time I checked, a little company still makes STUDEBAKER Avanti's up in South Bend, Indiana.
http://www.avantisource.com/history.html
LOOKS LIKE THEY FINALLY FOLDED.
A few years ago the old 1963 Avanti held the world speed record for its class.
Yep. Chrysler kept AMC's good stuff and liquidated the rest. AMC did the same to Kaiser and Hudson and Willys.
The last time I checked, a little company still makes STUDEBAKER Avanti's up in South Bend, Indiana.
http://www.avantisource.com/history.html
LOOKS LIKE THEY FINALLY FOLDED.
A few years ago the old 1963 Avanti held the world speed record for its class.
Last edited by a moderator:
jeninflorida
Literotica Guru
- Joined
- Feb 17, 2003
- Posts
- 22,463
Similar threads
