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Thread: American cars go under

  1. #1
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    American cars go under

    What do you think is gong to happen now, with GM's situation and the crazy new mileage standards?

  2. #2
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    well Fiat now owns Chrysler and is looking at buying GM's european companies so hard saying what will happen...

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    Apparently there are loopholes big enough to drive an escalade thru the new standards, so I'm not too worried.

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    US cars suck anyways, who cares? :P

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    Quote Originally Posted by bajasoobnut
    well Fiat now owns Chrysler
    no. not yet it doesn't

    Quote Originally Posted by KresSlyda180
    US cars suck anyways, who cares? :P
    lol
    -Matt

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    that is what I heard anyways for fiat

    but Saturn WAS bought by Rodger Penske

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    This might be a topic to move into the General Discussion section, because the changes in the auto industry are going to have a pretty big impact on the used Japanese car market.

    Gasoline prices are starting to climb again, 5-10 cents per week as summer approaches. People are going to start looking for high fuel economy cars again, and the last round of gas prices pushed the price of older Japanese cars up already. Suddenly 1981-1985 I-Mark Diesels are selling on Ebay for $2,000-3,000+. These cars have a blue book value of nearly nothing. If you totaled one out, then went over to your insurance company's office and held a gun to your insurance adjuster's head, they might give you $400 for it.

    The "Cash for Clunkers" law is going to give $2,500-4,500 to anyone who turns in an old car and buys a new one. Anyone shopping for older cars now has Uncle Sam as their competitor for that rough but fixable car. A few years ago, you might pick up an old car for $500, maybe less if you had to tow it home. Now your minimum opening offer has to be $2,500+, and maybe up to $4,500, in order to match Uncle Sam's offer.

    There is a general feeling that the result of the new fuel efficiency standards is going to yield "little tin cans" that no one wants to drive. That is going to push people into the used car market. Those people might not want older Japanese cars, for the same reason they don't want the newer "little tin cans", but the increased numbers of used car shoppers will push more people into buying the older Japanese cars, if only be displacing normal used car shoppers out of the market for larger models and into the market for smaller models. More demand and decreasing supply is the very definition of increased prices.

    Not many people picked up on the price increase associated with the new fuel economy legislation. Someone quoted $2,300 per car just to match the new fuel mileage requirements. That will push more people from buying new cars and into buying used cars.

    There were comments last year that the economic situation had pushed so many people away from buying new cars and toward buying used cars, that the price of used cars had come within a couple hundred dollars of the slashed prices that desperate car dealers were offering new cars for.

    And now they are closing Chrysler and GM dealerships, factories, and the ripple through the supplier networks supposed to put something like seven people out of work for each job lost at the assembly factories. None of these people will be shopping for new cars either, and they will be in competition in the used car buying market.

    Everything in this situation makes buying and working on used cars more expensive. I'm probably cheering more loudly than most with every report of GM's demise, but I seriously doubt I will ever see another $500 used car.

    Our hobby just got expensive.

  8. #8
    Administrator john's Avatar
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    Quote Originally Posted by bajasoobnut
    but Saturn WAS bought by Rodger Penske
    Everything I've seen in the news said he offered to buy it Wednesday/Thursday. I think it's far from a done deal, though. Who's reporting it's already happened?

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    I think it was on yahoo. The way they said it, it was a done deal.

  10. #10
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    Quote Originally Posted by JT191
    If you totaled one out, then went over to your insurance company's office and held a gun to your insurance adjuster's head, they might give you $400 for it.
    Now that made me lol. :lol:

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