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View Full Version : An american auto company making money?


ccowell
11-03-2009, 10:29 AM
Anyone see that ford's third quarter reports are out and they actually made money this time. I found this interesting fact on fords web site -

$997 million, or 29 cents per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago. It is Fordís first pre-tax operating profit since the first quarter of 2008

Maybe were on our way back out of this "recession"?

x-10ron
11-03-2009, 11:13 AM
that's easy to do when you cut thousands jobs, benefits and reduce operating cost. While it's seems like good news, they are still 3 billion in debt.

ntidsl
11-03-2009, 11:35 AM
and the govt basically paid them for the "cash for clunkers". I mean every tax payer basically paid them...this country is writing check that we will have to cash someday and when that happens we are royal %&*($%^#@!!!

JimN
11-03-2009, 11:35 AM
But they didn't take any bailout money.

Has anyone else heard about the Big Blue Oval conspiracy?

JimN
11-03-2009, 11:43 AM
and the govt basically paid them for the "cash for clunkers". I mean every tax payer basically paid them...this country is writing check that we will have to cash someday and when that happens we are royal %&*($%^#@!!!

That Cash For Clunkers deal, one of many that were shoved through without much public scrutiny, will cost about $25K/car. Admin costs ate the first $1.6B of the first $4B and it only provided a short-term boost to dealer sales volume followed by a sharp drop, just like the "Buy at employee price" sales they have had in the past. Big sales are usually followed by a drop in business and this was no exception.

88 PS190
11-03-2009, 05:43 PM
Ya and how many people bought foreign cars with their cash for clunker incentives?

We have not seen the end of this yet.

russlars
11-04-2009, 03:41 AM
Ya and how many people bought foreign cars with their cash for clunker incentives?

I have been fuming over this for months myself. Why didn't our politicians in their infinite wisdom only allow the cash for clunker incentives if purchasing an American made car so it would stimulate our own economy???:rant:

Jesus_Freak
11-04-2009, 05:47 AM
That Cash For Clunkers deal, one of many that were shoved through without much public scrutiny, will cost about $25K/car. Admin costs ate the first $1.6B of the first $4B and it only provided a short-term boost to dealer sales volume followed by a sharp drop, just like the "Buy at employee price" sales they have had in the past. Big sales are usually followed by a drop in business and this was no exception.

I hope I am wrong, but am afraid that the healthcare plan will be similar to the CFC deal:

1. The US gov offers to pay more for things than they are worth.
2. They wait a substantial period to pay the bills.
3. The program will cost well over 25% to administer.
4. Negative effects could have been avoided if more time/more people were included in the planning and if it did not become a partisan issue.

JimN
11-04-2009, 05:48 AM
I have been fuming over this for months myself. Why didn't our politicians in their infinite wisdom only allow the cash for clunker incentives if purchasing an American made car so it would stimulate our own economy???:rant:

Gee- maybe because every "imported" brand manufactures most of the cars for the US market here in the US? Maybe because all of the "import" car dealerships are owned and staffed by Americans and avoiding those brands and dealerships would have cost Americans their jobs? What the stimulus plan did was provide a short-term blip in the cycle, nothing more. The problem, as usual, is that this "government sponsored stimulus" plan increased the size of the government at a huge cost to the taxpayers, to provide buying incentive for people who had old cars that they probably couldn't afford to repair and often didn't insure. The problem with this whole idea is that if these people couldn't afford to repair or insure their older cars, they sure as he!! can't afford to make monthly car payments and no bank or finance company will loan money for cars if they aren't insured. The repo rate is gonna be high- I guarandamtee it. $1.6B of the first $4B went to admin. Pretty typical for these A-Holes.

BriEOD
11-04-2009, 08:23 AM
Well said Jim.

j2nh
11-04-2009, 10:37 AM
Top 10 cars purchased under the clunkers program (source NHTSA):
1. Toyota Corolla
2. Ford Focus
3. Honda Civic
4. Toyota Prius
5. Toyota Camry
6. Hyundai Elantra
7. Ford Escape
8. Dodge Caliber
9. Honda Fit
10. Chevrolet Cobalt

Top 10 vehicles traded in (note 83% were trucks):
1. Ford Explorer 4WD
2. Ford F-150 2WD
3. JeepGrand Cherokee 4WD
4. Jeep Cherokee 4WD
5. Dodge Caravan/Grand Caravan 2WD
6. Ford Explorer 2WD
7. Chevrolet Blazer 4WD
8. Ford F-150 4WD
9. Chevrolet C1500 2WD
10. Ford Windstar FWD van

j2nh
11-04-2009, 10:48 AM
I have been fuming over this for months myself. Why didn't our politicians in their infinite wisdom only allow the cash for clunker incentives if purchasing an American made car so it would stimulate our own economy???:rant:

Top 10 AMERICAN made cars (sales):
1. Toyota Camry
2. Ford F-150
3. Chevy Malibu
4. Honda Odyssey
5. Chevy Sliverado 1500
6. Toyota Sienna
7. Toyota Tundra
8. GMC Sierra 1500
9. Ford Taurus
10. Toyota Venza

Top 10 cars that are NOT American made (75% parts plus US assembly):
1. Chevrolet Equinox
2. Chevrolet HHR
3. Chevrolet Impala
4. Chevrolet Tahoe
5. Chrysler 300
6. Chrysler PT Cruiser
7. Dodge Charger
8. Ford Focus
9. Ford Fusion
10. Ford Mustang

It's a blurry line when you say "American made".

Jesus_Freak
11-04-2009, 01:41 PM
Top 10 AMERICAN made cars (sales):
...
Top 10 cars that are NOT American made (75% parts plus US assembly):
...
It's a blurry line when you say "American made".

Thanks. Agreed that it is blurry.

To me, the designation for what is American or not should be related to the % of purchased price going to US peeps. For a completely hypothetical example, let's say a car was designed and marketed to the US by a German company and assembled in the US with parts from Japan. So, the overhead goes to its German company, assembly income to the US, and parts income to Japan. What if the assembly only costs 20% of the total cost of the vehicle? IOW, only 20% of the purchased price stayed on our soil. Would we call that an American car?

helton333
11-04-2009, 03:15 PM
You know this stuff will hit, pardon me, is already hitting boats. What will we do when the V8 is a thing of the past? One reason why I am going ahead and buying a new model next year - case your boat has to run on soy after Obama's term ends.

JimN
11-04-2009, 03:49 PM
You know this stuff will hit, pardon me, is already hitting boats. What will we do when the V8 is a thing of the past? One reason why I am going ahead and buying a new model next year - case your boat has to run on soy after Obama's term ends.

V6 motors can provide enough pull as these do now, at a lower weight, but everyone wants to see a big HP number. The GM cast iron V8 is just well-known, readily available and relatively cheap. A new version V6 would take some development but a straight 6 would possibly be an option for the smaller boats. That, or clean-burning diesel. Maybe a variable ratio transmission?

j2nh
11-04-2009, 03:59 PM
Thanks. Agreed that it is blurry.

To me, the designation for what is American or not should be related to the % of purchased price going to US peeps. For a completely hypothetical example, let's say a car was designed and marketed to the US by a German company and assembled in the US with parts from Japan. So, the overhead goes to its German company, assembly income to the US, and parts income to Japan. What if the assembly only costs 20% of the total cost of the vehicle? IOW, only 20% of the purchased price stayed on our soil. Would we call that an American car?

In order to be considered an "American Made" car it has to be assembled in the United Sates with at least 75% US made parts.
As to an "American" car company, they are all now multinational and the distinction is really blurry. For example,GM takes profit from US auto sales and invests it in a Chinese Buick plant because that is where they see their biggest growth potential.

bcampbe7
11-04-2009, 05:26 PM
I have been fuming over this for months myself. Why didn't our politicians in their infinite wisdom only allow the cash for clunker incentives if purchasing an American made car so it would stimulate our own economy???:rant:

Hilarious!


Gee- maybe because every "imported" brand manufactures most of the cars for the US market here in the US? Maybe because all of the "import" car dealerships are owned and staffed by Americans and avoiding those brands and dealerships would have cost Americans their jobs? What the stimulus plan did was provide a short-term blip in the cycle, nothing more. The problem, as usual, is that this "government sponsored stimulus" plan increased the size of the government at a huge cost to the taxpayers, to provide buying incentive for people who had old cars that they probably couldn't afford to repair and often didn't insure. The problem with this whole idea is that if these people couldn't afford to repair or insure their older cars, they sure as he!! can't afford to make monthly car payments and no bank or finance company will loan money for cars if they aren't insured. The repo rate is gonna be high- I guarandamtee it. $1.6B of the first $4B went to admin. Pretty typical for these A-Holes.

Agreed and well said.

Folks buying something they couldn't afford is partly (if not soley) the reason some folks' economy is in the mess it is now. This cash for clunkers fiasco will be no different.

Note: I say "some folks' economy" because not everyone is in bad shape financially speaking, but you wouldn't know that by reading/watching the news. :)