The Big 3 Continue to Fall

You're almost correct. Not all of the blame lies there, but a fair amount.

 

Bullshit. Bullshit on a stick. The same thing that's doomed them doomed the steel mill industry. They built these plants in the early 1900's and didn't do jack shit in terms of modernizing them and making them more efficient until the time that they closed. Couple that with the garbage wagons that big Three were rolling out in the 70s and 80s (K-Car, Cadillac Cimmaron, Pinto, Vega, etc.) and it was a recipe for disaster.

Now here comes the Japanese with modern factories that allow them to build cars in a more cost-effective manner that are better engineered. Naturally, word spreads about the reliability of Nissan and Toyota and Honda and people start buying 'em up and Detroit's left holding their dick in their hands.

Much like newspaper companies, these folks were too slow to adapt. And much like newspaper companies, it's coming back to bite them in the ass.

 

"Super turbo-fucked" is my new favorite phrase.

 

That would be Toby Keith. I guess the Dixie Chicks won't be plugging Ford any time soon ...

As recently as two years ago the big three were cranking on all the gas guzzlers they could turn out, instead of developing more efficient vehicles. I'd submit that the auto industry, while not 100 percent culpable, is nonetheless complicit in the fuel price crisis we have. But then, as someone else pointed out, their manufacturing setups are archaic, so it's little wonder their products are too.

So, which one of the big three is most likely to rebound from this? In case, you know, I wanted to drop $500 on those really cheap stocks.

 

I'd say GM, which has two brands that have rebounded tremendously from where they were 20 years ago (Cadillac and Chevy) and one that's finally bringing out some fresh ideas (Buick). Ford is supporting two name plates that should have been taken off of life support years ago in Lincoln and Mercury.

 

Lincoln and Mercury -- Lincoln especially -- are the brands where Ford makes money because the markup on those cars is way more than the markup on the F-150s and Focuses of their lineup. The luxury lines have always been where auto manufacturers make their money. Sell a shitload of crappier cars and trucks at $1,000-$3,000 markup and make $7,000-$10,000 on the luxury brands. Ford ain't getting rid of Lincoln anytime soon.

 

GM is also out in front of their sclerotic rivals in China, India and Brazil -- three of the four fastest growing economies in the world.

And Joe's right. Lincoln isn't going anywhere, not when you can take the same Ford chassis and framework, slap the Lincoln name on it and sell it for twice as much as an identical Ford product.

Now, Mercury? That should have been torpedoed years ago.

 

It all went downhill when Plymouth died. Oldsmobile too.

 

Brought a new car not too long ago and thought long and hard about a Ford Escape. A family friend works for a dealer and could've gotten a real good price on one. They are pretty reliable and Ford seems to be making much better product. (wasn't the Hybrid and only got about 19 mpg, which was a bit low for me) My 2 cents

 

Merc Grand Marquis? Ford Crown Vic with makeup.

Olds was killed because of the connotation with, well, old people.

 

The Lincoln MXZ's a nice ride as is that small SUV they make, but I fear it's too little too late. The dumped the LS (which sucked for resale value), the Continental went away in 2002, the Mark VIII went away after '98 and what do we have left? The Town Car? WHo do you know under age 70 that drives a Town Car? Not to mention the Town Car is 1993 technology wrapped in 2008 sheet metal. Were these idiots not paying attention when Cadillac slowly morphed the Deville into one of the more technologically savvy cars out there? Nah, lets keep giving 'em rear wheel drive with sloppy, loose steering.

 

Let's see ...

Union deals that had domestic manufactuing employees of many skill levels making huge bucks. Check.

Domestic manufacturers that were angling to sell more truck and SUVs instead of cars. SUVs and trucks cost little for design because how difficult is it to weld a box onto the back of what used to be a pickup and call it an SUV status piece? Check.

Japanese makes with superior products and more strict workmanship tolerances, combined with enough sense to let them build many of their vehicle in the States. Check. (Bonus points for making the domestics, some of whom try to pull on our heartstrings with flag-waving and other overpatriotic BS, look really bad)

Gasoline at $4 a gallon, making those Suburbans and Expeditions that much more costly to keep on the roads. Check.

Whoops. Um, Big Three, we have a problem.