General Motors (GM) cutting almost 15,000 jobs in North Aerica
- Thread starter KingBlack
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I agree with @VRYALT3R3D here. The same can be said about trucks. The fuel mileage in these bigger vehicles have closed an enormous gap in the last 4 years that any rise in gas prices has a smaller effect on the consumer's decision to go back to a smaller car. They are finding value in the mid size CUV and truck over the saved 10MPG. The only real advantage sedans have is purchase price the way I look at it.
However, in the last 10 years, the average commute has continued to grow. So, we may hit a mark where trucks decline more, but I fully believe the CUV market will capture those owners and not a sedan getting nearly equal MPG.
Another angle we have to consider is the ride sharing market such as Uber and LYFT. The overall automotive market may dwindle as they become more and more popular.
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Nah Accord sales are way down even in the redesign. My brother is a manager at a local Honda dealer. It’s the new market trend SUV, Cross overs, & trucks. If that happens they will just import from China. My parents CRV 4cyl turbo gets mid 20’s fuel mileage.
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Those are both great offerings. The new Camry's look great, and a 300hp v6 backed with an 8spd auto is no slouch. And the other end of the spectrum, the Corolla is just a good ass cheap ass car. You can lease one for like a hundred bucks or something nutso like that. Like for people that just need a car and dont care, the 'Rolla is always the car that I think of in that regard. And the 2020 Corolla inherits some of that 18+ Camry genetics and actually looks pretty spiffy.
Precisely.
Maybe I've missed it.....the Camaro and Corvette are completely safe here?
Corvette yes so far unless GM totally wants to go into this whole down a dead end ally with this rumored mid engine C8, as the reason Corvette sells so well is that it's an actual sports car you can use every day, unlike any of the Lambo's, Ferrari 488, and Porsche 911. There is a reason you don't see them being daily driven unlike a Vette. Since if you pack more than a toothbrush you run out of cargo space real quick.
Camaro not so much as Holden has closed it's doors for good and now with the Caddy CT6 getting axed no telling where the future chassie would come from.
I won't miss any of the cars they are killing, but am concerned they are throwing too many eggs in the SUV and related basket. Same with Ford. As for ramping up electric production, I could care less. I will never buy one of those boring things.
That's exactly what I said. There is a huge market out there, but no matter how good the market, you can always run a company so badly it loses money. If GM had folded, a thousand new companies would have sprang up to serve the market. By giving GM and Chrysler these bailouts, they only rewarded the same behavior that got them there in the first place, and made the coming, inevitable corporate implosion that much worse.
Agreed. That is one of my biggest concerns that too much addiction to SUV's and Trucks will get us into trouble again. I could remember not too long ago when gas hit over $4 a gallon everyone was chucking their Trucks and Suv's for small cars. What would happen if we ever had a big problem and gas went to $6 or more a gallon. There would many unhappy owners in the USA. Over the last 30 years I have owned many Trucks and Suv's since I live in a ski resort area and need AWD/4WD. But during that same time have owned 10 small cars 4 Escorts and 6 Focus cars to keep the balance. There will always be a place for a small car in my daily driving. My current 170K mile 2011 Focus SES fits that bill very well.
Oil demand is going down while US production is going up. There could be an oil crisis around the corner, but we have a much bigger cushion than in the past. GMs problem is they build crappy uninteresting vehicles. Their trucks and full sized SUVs (Tahoes, Yukons, Suburbans) are ok, but they are crazy expensive and the competition is better. My late father was a die hard Buick guy and one of my first cars was an 86 GN. I think it's sad what has happened to GM over the last several decades.
Months back there was a rumor swirling around the Camaro forums that the 6th gen would be the last. Frankly it looks ****ed up now and needs a redesign. My 5th gen looks great functions wonderfully and has been my wife’s favorite car. She loves the 6th gen (before redesign) and wanted one, but the price jump for a few updates and less space is a major turnoff for us.
We get letters and emails from 3 different dealers weekly bugging us to trade it in on a 6th gen because they won’t sell. The car is so ugly that I got her looking at scatpacks so she can have another nice car after this one. I have a love/hate relationship with my GMC because of its build quality being shit.
Its a damn shame these people are loosing their jobs right at the holidays and i feel for them.
We get letters and emails from 3 different dealers weekly bugging us to trade it in on a 6th gen because they won’t sell. The car is so ugly that I got her looking at scatpacks so she can have another nice car after this one. I have a love/hate relationship with my GMC because of its build quality being shit.
Its a damn shame these people are loosing their jobs right at the holidays and i feel for them.
Or the insurance companies then pull a binger and start charging about a 50% increase for every SUV and truck since everyone has them and so have a choice either pay up or stop driving since no one makes cars. This is what killed performance the first time in the early 70's when insurance companies pulled this same maneuver with anything over a 327 cu in V8 engine.
Uh, no. Not going to happen.
Anyone think there could be a crash down the road when it comes to prices of new vehicles? I’ve always wondered with rising costs. I know there is R&D and such as well as safety stuff they have too add. I’ve even heard a certain percentage of sales goes towards UAW retirements.
I’ve always bought pre-owned a few years old never new myself.
@13COBRA what’s your take on this?
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I’ve always bought pre-owned a few years old never new myself.
@13COBRA what’s your take on this?
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Cars are expensive because people want technology and that technology isn't cheap. Plus there is inflation and legacy costs of factory workers to account for. But technology is the main reason. How many people do you see by base model cars? Well, those base model cars would have been considered full loaded cars 4-5 years ago. Higher transaction costs are also a result of very long-term financing.
People may not like them, but you can still find cars brand new for less than $10,000.
The auto companies sell what people want. Heck, you even get a TV and remote start!
The auto companies sell what people want. Heck, you even get a TV and remote start!
Insurance will continue to go up on new vehicles because the parts to replace continue to rise at a fast rate. As someone stated people want all the new tech. When the new tech gets damaged in an accident it cost alot to replace. In fact over the last 5-10 years insurance has raised over 50%
The problem is, GM should not be needing to restructure this soon after their last restructure. 10 years after the bailout and they are massively shrinking again. Not sure how anyone can spin this positively. It might be necessary step now but it shouldn't have got to this point.
You don't continuously shrink to profitability. When you become bloated, that is necessary. GM should have been good for decades after they restructured. This means their leadership is way too short sighted.
I am a car guy, I don't like trucks, I don't like SUV's. I like cars. That said I can't expect every carmaker to make me 10 different choices of cars when nobody else is buying them. Cars will become the niche market, a few automakers will cater to them, but you will pay.
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