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They have reasons in being uncharacteristically optimistic. Variant Send a noteboard - 01/09/2010 09:57:10 AM
Profits at General Motors and Ford are up, the latter is enjoying phenomenal market share and both companies also boast an increasingly impressive product portfolio.

And despite the media scepticism, customers have noticed the improvements. Yes, fleet sales are creeping back up, but incentives are down, dealers are more profitable and Kelley Blue Book recently reported that Ford is the most considered marque for Americans. According to its Brand Watch study, 29 per cent of consumers shop Ford versus only 22 per cent for the perennial market leader Toyota. As well, for the first time in history, Ford and GM lead the American Customer Satisfaction Index (ACSI).

Lincoln-Mercury tops the industry with an overall score of 89 (out of 100) with Buick following closely at 88. Nor is this an isolated trend. Though the overall satisfaction in the auto industry is down (largely as a result of the discontinuation of the “Cash for Clunkers” program according to ACSI), US car makers showed the smallest decline while satisfaction with the Japanese and Korean marques dropped the most.

The short-term boost that may have been generated by pumping money into GM, combined with the "cash-for-clunkers" stimulus of last year, may be translating into a short-term profit (and a very thin one at that). However, once the Volt comes out, you will see losses. It is too expensive for what it does, and reducing the cost is not an option because it has a high production cost. If the government were to support GM in a long-term fashion, the Volt MIGHT be able to come down in price due to streamlining the process, but not fast enough to compete with Japanese hybrids and electrics.


In regards to the Volt's pricing, this is damned if you do; damned if you don’t. Had GM priced the Volt more competitively, people would have complained that the stimulus money was wasted because GM was still selling cars at a loss. But then again, most Japanese hybrids are still sold at a loss. The thing is your placing too much emphasis on the Volt, it's not like it's GM only project in the pipeline. If you want a more viable target, then you should focus on Chrysler. The Daimler rejectee is still losing money, market share continues to decline and, despite the successful introduction of a new Grand Cherokee, there’s not much new product in its pipeline.

It isn't all peaches and cream, but the fact that we're even having this conversation considering the state they were in a year ago, two years ago? Is in itself quite remarkable.
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A quote regarding the Soviet economy that can be applied to the Obama Administration. - 29/08/2010 08:07:11 PM 1192 Views
the Copernecian model bit was a tad exaggerated - 29/08/2010 08:28:41 PM 707 Views
I wish I could believe the Democrats were only behaving "as" poorly. - 29/08/2010 09:50:23 PM 730 Views
the sad thing is, I really don't think it has to be that way - 29/08/2010 10:31:16 PM 780 Views
This is a classic mistake of the independent voter. - 30/08/2010 12:35:33 AM 716 Views
mmm fair enough - 30/08/2010 01:02:31 AM 748 Views
You cannot seriously agree with the Republicans about extending the Bush tax cuts. - 30/08/2010 09:07:59 AM 607 Views
I would target lowering the corporate rate and helping pass-through entities with cuts. - 30/08/2010 02:52:55 PM 668 Views
How many companies actually pay that corporate tax rate, though? - 30/08/2010 03:37:47 PM 791 Views
In reality, virtually no company in the US pays anywhere near the actual corporate tax rate. - 31/08/2010 11:12:05 AM 733 Views
Where are you getting your "information"? *NM* - 31/08/2010 04:24:47 PM 275 Views
Are you saying companies are actually paying 35% in corporate taxes? - 31/08/2010 10:11:28 PM 651 Views
God help us if we ever end up at the OECD average! - 31/08/2010 10:30:34 PM 574 Views
Which have corporate tax rates equal to or lower than that 35%. - 01/09/2010 01:04:34 AM 945 Views
Absolutely not. - 01/09/2010 04:13:24 AM 623 Views
The pot shouldn't call the kettle black - 01/09/2010 10:10:42 AM 796 Views
So you admit... - 01/09/2010 10:22:24 AM 758 Views
Tax cuts should relate to domestic hiring. - 31/08/2010 11:42:11 AM 749 Views
So what you are saying is that for someone like you, it is all about how dishonest you think they ar - 30/08/2010 03:17:27 PM 882 Views
Oh, I concede we're screwed over. - 31/08/2010 06:22:44 PM 612 Views
Soviet economy is an oxymoron - 29/08/2010 10:13:38 PM 796 Views
The only nation "without" an economy is likely North Korea. - 30/08/2010 12:41:19 AM 664 Views
It is true, I know no republicans personally who espouse a Copernican Model of the Universe - 29/08/2010 10:16:38 PM 713 Views
The sun is the center of our solar system. - 30/08/2010 12:42:34 AM 704 Views
More or less - 30/08/2010 01:55:00 AM 721 Views
I loved a quote I saw recently from a retired Navy veteran... - 29/08/2010 10:21:27 PM 794 Views
Excellent quote. *NM* - 30/08/2010 12:36:20 AM 247 Views
For all of the talk about republican social issues even with a majority they didn't do much about it - 29/08/2010 10:25:22 PM 838 Views
that's one reason why I'm O.K. voting republican - 29/08/2010 10:37:02 PM 759 Views
But it often costs them the center in elections, too. - 30/08/2010 12:28:43 AM 622 Views
ignoring the social conseratives would not work either - 30/08/2010 03:09:21 PM 713 Views
I have a strong dislike for Hilary Clinton. - 29/08/2010 11:38:10 PM 665 Views
I find myself regretting that she didn't beat Obama in the primaries. - 30/08/2010 12:30:28 AM 607 Views
I would have voted for her in the general. *NM* - 30/08/2010 03:29:01 AM 268 Views
Interesting comparison - 30/08/2010 04:19:40 AM 664 Views
possibly because.... - 30/08/2010 04:24:23 AM 700 Views
I'm curious... - 31/08/2010 12:08:44 PM 819 Views
Lower taxes and cut costs, and cutting regulation. - 30/08/2010 02:55:19 PM 772 Views
That's why I'm a Libertarian - 30/08/2010 09:22:18 AM 672 Views
Strict libertarians are disliked for some of their own insane ideas. - 31/08/2010 06:21:12 PM 537 Views
Oh, but that just sounds like insanity - 01/09/2010 07:54:09 AM 875 Views
I don't know MUCH about politics - however.. - 30/08/2010 01:49:03 PM 735 Views
If Republicans focus more on the economy, we have our best chances. - 31/08/2010 06:18:49 PM 514 Views
ME TOO - 02/09/2010 06:53:43 PM 594 Views
Actually, General Motors has made quite a turnaround, the company is actually making profit now. - 31/08/2010 10:44:15 AM 745 Views
The Economist is being uncharacteristically optimistic on this point. - 31/08/2010 06:17:51 PM 544 Views
You an deveryone else seriously misunderstands the Volt. - 01/09/2010 12:52:23 AM 770 Views
They have reasons in being uncharacteristically optimistic. - 01/09/2010 09:57:10 AM 854 Views
why do you think Ford is doing so well? - 01/09/2010 01:54:11 PM 706 Views
Your undersanding of electric cars at GM is incorrect. - 01/09/2010 12:44:36 AM 745 Views

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