For GM, Ford, and Chrysler, at Least Two More Years of Misery

LEASE LOSES UNDERSTATED.

IN SEPTEMBER, 2007, I LEASES A NEW 2007 CHEV. SUBERBAN. STICKER PRICE $53,000. I LEASED THE VEHICLE FOR THREE YEARS WITH A RESIDUAL VALUE OF $33,000. TODAY THE SUBURBAN IS WORTH,(AUG. 1, 2008, BLACK BOOK) AN AVERAGE WHOLESALE VALUE OF $19,600 PLUS $1375. IN ADD FOR A GRAND TOTAL OF $20,975. I STILL HAVE TWO MORE YEARS ON MY LEASE. BASING A FUTURE VALUE ON THE CURRENT VALUE OF A 2005 MODEL (2 YEARS OLDER) THE VALUE WILL BE AROUND $14,000. 42% OF THE ORIGINAL LEASE VALUE. THE VALUE IS ON THE BOOKS IS OVERESTIMATED BY 58%

THE SUBURBAN IS AN EXTREAM CASE TO THE BAD, BUT, MOST LEASES ARE ON THE BIG EXPENSIVE VEHICLES. MY THOUGHTS ARE THAT THE LEASE VALUES ON THE BOOKS FOR GMAC AND OTHERS (FORD, CHRYSLER, TOYOTA, GE) ARE OVERSTATED BY 25% TO 40%. MULTIPLY THAT BY THE BILLIONS OF DOLLARS ON THE BOOKS AND YOU ARE TALKING REAL MONEY

BLACKWOOD STEWART of NC @ Aug 07, 2008 11:54:36 AM

Nostagia, philosophy, reality

Of GM, Chrysler LLC, and Ford, this can said: "Those who can produce a product of best quality with the most efficient means, while correctly marketing said product will be successful in their industry".

The Big 3 have failed at this sporadically for the past 30 years, and spectacularly for the past 3. There will be no mergers, unless it with an overseas competitor. I wanted to buy a Focus wagon back in January. Ford discontinued the model. They had plenty of Explorers on the lot, however, which I did not buy. I settled for an Escape, but only because it had been used as a "Demo" with a significant discount. I visited GM and Chrysler dealers and heard the same story. The re-structuring of product to meet demand is 3 years behind schedule. Since Katrina, fuel prices have steadily increased, and any student who took even a freshman year economics class could see the imminent housing market correction. Toyota starting making these adjustments in earnest, while the Big 3 went with the "Wait and see" approach. All are expecting the calvary to come with new models in 2010. Will they survive that long? Brand familiarity and good will is non-existent in the generation of car buyers under 25 years old for the Big 3. Young car buyers talk about Toyotas, Hondas, and Acuras. These young buyers will be looking toward their next level of vehicle as they mature, i.e. family cars...whill be they looking toward Detroit?

Jeremiah Mills of VA @ Aug 03, 2008 16:39:09 PM

Ford dying

I have owned a Ford for almost 40 years. Customer service is dying and so is the business. I will not buy another Ford after my last experience. If I am a die hard fan of Ford and feel this way....how many others are there?

Picso222 of NJ @ Jul 30, 2008 11:48:51 AM

BUY FROM THE BIG THREE

AMERICANS MUST BUY FROM THE BIG THREE OR THEY WILL DISAPPEAR AND YOUR JOB WILL BE NEXT.

BILL of MI @ Jul 28, 2008 00:00:56 AM

Oil Speculaters

If the oil speculaters would quit jacking up the prices all 3 would be helped.At least that would by them enough time to get the production of more fule conserving cars and trucks.We need to get congress to do something about that.Find a way to give grants to all 3 to be able to get production going sooner.

Fix the problems of WI @ Jul 22, 2008 03:20:03 AM

So Long Big 3

I don't agree that Americans should be buying from American car companies. The big 3 have not innovated their product. In 20 years they have not improved gas mileage in their cars. They didn't care about giving the American consumer more value for our dollar. In California they lobbied to get rid of electric vehicles.

In America, you either keep up with innovative technology or it rolls over you and leaves you behind. Toyota and Honda have spent years improving their product while GM crushed all its EV1's and scoffed at hybrids. Well I can't tell you how good it felt to get rid of my 2005 Suburban and upgrade to a 2001 Prius. Nothing feels as good as getting 48 mpg. I went from spending $600 a month on gas to $150.

I won't be standing by the Big 3 because they haven't stood by me and while they are playing catch up, I'll be driving a reliable Toyota.

Tara Johnson of CA @ Jul 20, 2008 05:20:26 AM

Reframe: U.S. Automotive Manufacturers & Global Marketplace

I apoligize for too much rambling. There is a disconnect between all the complex links of the U.S. Automotive industry and their places in the global marketplace. Too much money is wasted via lack of knowledge of the links between corporate image, product lines, and the current economic markets, both macro- and micro-. This chain of command works in balance, link by link, when it works properly. The fact that we are looking for the end is in itself a broken link. Even though I want to but can't fix these problems, the solution does include making who I represent a happy customer.

Lisa Dennison of MI @ Jul 17, 2008 10:09:28 AM

United States Patent 7025021 ?

To Dugal Harcourt of XX

What you wrote doesn't tie to GM, Ford or Chrysler in a way I can quickly research. However, are you possibly communicating new valuable technology? Your jargon maybe can be spun to catch my interest - a person who buys automobiles for daily requirements, with a main requirement being I drive the same car every day for at least four years each. I have a "geek pass" to technology via personal interests and magazine subscriptions (Wired, Popular Science and a couple dozen more) own a couple computers and have burned through a half dozen others at home, most of which I've had to "reformat the C:/ drive at least once. I saw GM's electric car of 10 years ago, I learned to drive in a Porshe vehicle before I got my driver's license, I crashed a Corvette at the tender age of 16, not crashed, just broke the wheel axle...by trying to go faster and faster at a local metropark....I drive my basic American-made mid-size sedans like sports cars still. I need the cheepest V6 with ABS, but I don't put anything beyond my basic reqirements on credit. I don't drive using a cellphone. I've learned to drive well and safe. Let's not even re-visit my driving history or weird childhood. I read automotive advertisements, yet your technical description doesn't reach me in a way that motivates me to change my current dream car (not telling). That all said, my point is, car companies don't need multi-million dollar advertising budgets; they need people, ideally, employees who live with cars and pay attention to them; people who can get inspired and passionate about vehicles. By keeping me out of the employee base, and trying to debase me on my own stomping grounds, and replacing me with Indians from India (current ratio is 2.2 Indians per American and they aren't working yet, they just print off historical books of processes and procedures from American-owned databases. They are called Right Source Agreements RSA's), I think it's time for management to get their heads out of their company-owned vehicles that use company-paid gas cards, and put their ear to the pavement; the current drumbeat doesn't fit into the song they sing. And I won't buy a car from someone who doesn't like me and at the same time I'm envious of - it's just basic high school social science common sense. I'm not stupid, slow or a valley girl(earned scholarships, test very well on variety of subjects.) Although I've always chosen American brand vehicles, there are plenty of cars to choose from and many are marketed quite well. In theory, a vaporware Harvard business case study; how does one market an albratrose? Do the Indians know what an albratrose is?, what its literary pedegree means? Do you? Does anyone care? What is the true earned value analysis (EVA) of replacing educated American workers with 2.2 Indians? Where do we go from here?

Lisa Dennison of MI @ Jul 17, 2008 08:47:24 AM