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Detroit Auto Makers Try Some New Tricks
Wall Street Journal ^ | 14 September 2007 | NEAL E. BOUDETTE

Posted on 09/14/2007 1:23:39 PM PDT by COBOL2Java

Just about every month, CNW Market Research meets with a group of would-be car buyers and plays a trick on them.

Sometimes the company, which specializes in auto sales trends, takes a Toyota Camry, removes any identifying logos, and tells them it's a new model from one of the U.S.-based auto makers. Or it takes a domestic car and tells them it's a Toyota or another import make.

Either way, the result is the same. "If they think it's an American car, the perception of the vehicle falls dramatically," said Art Spinella, vice president of the Bandon, Ore.-based firm. "Detroit really gets a bum rap in the U.S."


snip
Inferior cars that Detroit churned out in the past are still hurting the industry's image. In addition, Detroit auto makers still tend to push sales using big discounts, a tactic that undermines both brand image and the resale value that customers get when they trade in or sell their old car.
snip

The main reason import intenders stay away from domestic cars, Mr. Denove said, is that "today's consumer doesn't yet believe the Big Three have improved quality to the point where they are on par with the Japanese manufacturers."

That drives Ford, GM and Chrysler executives crazy. Independent quality studies show they've narrowed the gap with Toyota. Just a few weeks ago, J.D. Power's long-term dependability study reported that GM's Buick brand had tied Toyota's Lexus, which had stood alone on top for the past 12 years.

A Toyota spokesman acknowledged the quality of Detroit's vehicles is closer to Toyota's, but added that Toyota continues to improve its quality as well. "Our problems per vehicle is still going down. It's continuous improvement," the spokesman said.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; News/Current Events; US: Michigan
KEYWORDS: automakers; autos; detroit; fordmotor; marketplace; wsj
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1 posted on 09/14/2007 1:23:42 PM PDT by COBOL2Java
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To: COBOL2Java

The last care I bought was the family minivan. We looked at the domestic lineup and then Toyota and Honda. The domestics just weren’t in the same league. Sad but true.

They need to hire better designers and engineers and keep them.


2 posted on 09/14/2007 1:30:14 PM PDT by SampleMan (Islamic tolerance is practiced by killing you last.)
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To: COBOL2Java

A would be car buyer can’t tell a Camry? Where do they get people this stupid?


3 posted on 09/14/2007 1:30:16 PM PDT by hubbubhubbub
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To: hubbubhubbub

A lot of the cars look pretty much alike any more. And Camry buyers, generally, as a group, aren’t real car nuts. They’re looking for reliable transportation.


4 posted on 09/14/2007 1:34:58 PM PDT by Hardastarboard (DemocraticUnderground.com is an internet hate site.)
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To: COBOL2Java

Five years ago I accompanied my wife to a Ford dealer to help her choose a car. The salesman asked if I wanted to see the engine. Sure, why not? The he had big trouble getting the hood up, due to a hood latch defect. My wife said, “Let’s go. If they can’t get a simple latch right, what about the rest of the car?”. That day she bought a Honda which has served her very well.


5 posted on 09/14/2007 1:37:23 PM PDT by TexasRepublic (Afghan protest - "Death to Dog Washers!")
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To: COBOL2Java
A lot of Detroit's perception problems are for long term problems. People expect their new cars to be problem free. Where the US manufacturers run into trouble is the "how much service will I need 5-7 years from now." If a Honda is at 100,000 miles on it without much trouble, but a Ford is beginning to rack up the repairs at that point you start thinking that Honda has a better car.

The US companies should continue to improve their quality. But if they really want attention they should put much longer warranties on their cars. Maybe 7 years/100,000 miles would be a good number. If the car is well built it won't cost the car company much. If not, then maybe it is time to go back to the drawing board.

One problem I think the US companies have is too many car lines. If GM wants to keep differentiation between Cadillac, Buick, Saturn, Chevy (and whatever else they still have) they can't make the Chevy as good as the Cadillac even if it just simple stuff like using a 10 cent seal which fails after a few years instead of a 1 dollar seal that lasts forever. That leaves a bad impression with future buyers. I was worried that the Japanese companies were going down that path when Acura, Infiniti and Lexus came out.

6 posted on 09/14/2007 1:37:28 PM PDT by KarlInOhio (May the heirs of Charles Martel and Jan Sobieski rise up again to defend Europe.)
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To: SampleMan
Some slogans Detroit can try out:
For Ford: "Quality is Job One" - this time we really mean it!
For GM: "Drive a GM car today! It's not as sucky as you might think!"
For Chrysler: "OK, the Germans ditched us. But it wasn't our fault!"

7 posted on 09/14/2007 1:38:03 PM PDT by COBOL2Java (The Democrat Party: radical Islam's last hope)
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To: COBOL2Java
I just ordered a new Saturn (GM) Outlook. They had NO incentives on this car other than $500 if you paid cash. My friend received a flyer in the mail for $2,000 off the same vehicle if he turned his lease in early. He's not buying a GM so he didn't need the coupon. I called GM and asked if I could use the coupon because I was thinking of buying GM and turning in my Toyota Sienna off of lease. They said nope, that was only sent out to a certain number of people and that was it....

My gripe to them was, I WANT to buy a GM and move away from Toyota and you offer me nothing and the guy that doesn't want to buy GM gets 2k. Very frustrating.....

8 posted on 09/14/2007 1:45:50 PM PDT by oust the louse ("NEVER LET THE ENEMY PICK THE BATTLESITE".....General George S. Patton,Jr.)
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To: COBOL2Java

My current vehicle, an ‘04 Chrysler Concorde, has 110,000 on it and I’ve had no problems, other than having to have the brake rotors turned once. My last vehicle was an ‘07 Dodge Dakota which I bought new and sold with 255,000 miles on it, and I think I replaced the water pump once and had the tranny rebuilt at around 220,000. I think Japanese quality and engineering are awesome, but the US car companies have come a LONG way since the ‘80s.


9 posted on 09/14/2007 1:49:52 PM PDT by lesser_satan (FRED THOMPSON '08)
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To: COBOL2Java

My 2000 Ford died last summer at 84K. In hind sight the probles surface following the 60K checkup.

I now have a Honda. Will never own another American car made by UAW’s.


10 posted on 09/14/2007 1:52:17 PM PDT by zek157
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To: COBOL2Java
UAW goals, automakers' reality clash
11 posted on 09/14/2007 1:54:11 PM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: COBOL2Java

The test would be to check resale values for recent models. If the US/Jap spread is still wide, that’s all you need to know.


12 posted on 09/14/2007 1:54:47 PM PDT by NativeNewYorker (Freepin' Jew Boy)
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To: COBOL2Java
"Detroit really gets a bum rap in the U.S."

And the boys in Detroit really worked hard for decades to EARN
the rap as producers of crap cars.
And for decades, it was NOT a "bum" rap.
13 posted on 09/14/2007 1:54:49 PM PDT by VOA
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To: Hardastarboard
And Camry buyers, generally, as a group, aren’t real car nuts.

Frankly, I'm baffled as to why someone would pay $20k for a new one. Camry's are boring; their only redeeming quality is that they are reliable, fuel efficient transportation. If that's all I wanted, I'd spend 6k-9k on a similar used vehicle. For that matter, only 3k was spent on the vehicle I have now (which is merely reliable transportation) and I've been driving it for four years and 90,000 miles. I would never spend over $10k on a vehicle unless it was something I truly enjoyed driving.
14 posted on 09/14/2007 1:56:38 PM PDT by JamesP81
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To: lesser_satan

255,000 miles on an 07? You must drive a lot.


15 posted on 09/14/2007 1:57:41 PM PDT by BBell
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To: mewzilla
From this link....

NURSING AMBITIONS In Shift, Auto Workers Flee to Health-Care Jobs

...Those benefits have made Detroit's labor costs the highest in the auto business: The three makers estimate that unionized workers cost them more than $70 an hour, factoring in benefits and retirement, compared with $40 to $45 for Honda and Toyota. Health-care costs alone increase the price of Detroit-brand vehicles by as much as $1,000 to $1,500 compared with a U.S.-made Toyota, they estimate.

Note to the Big Three: I ain't paying for that.

16 posted on 09/14/2007 1:57:44 PM PDT by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: COBOL2Java

A recently deceased friend was absolutely “Buy American” but staunchly anti-union. When I showed him my new Honda Element, he turned his nose up at that “Japanese piece of #%&!.” When I told him it was built in Marysville, Ohio by non-union American workers, he didn’t know what to think.

Every time I buy a new vehicle, I always give American cars a try. I haven’t bought a new American car since 1991.

But I’ll give ‘em another chance when the Honda drops dead.


17 posted on 09/14/2007 1:58:44 PM PDT by Peter W. Kessler (Dirt is for racing... asphalt is for getting there.)
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To: BBell

should have been ‘97. Sorry.


18 posted on 09/14/2007 1:59:37 PM PDT by lesser_satan (FRED THOMPSON '08)
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To: lesser_satan
should have been ‘97. Sorry.

I've noticed that American built pickups tend to last very well. I think it's because a pickup is naturally more strongly built since it's intended to be a work vehicle. The natural consequence of that is that they are hard to destroy. I probably wouldn't buy an American made sedan...but I'm seriously considering a Silverado as my next vehicle. Or, if I decide I can dispense with practicality one of the late model C4 Corvettes (same kind of thing; it's a very strong engine and under regular driving it doesn't take much out of it. Plus it's a Vette, need I say more?)
19 posted on 09/14/2007 2:02:21 PM PDT by JamesP81
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To: TexasRepublic

traitors


20 posted on 09/14/2007 2:03:24 PM PDT by BurbankKarl
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To: BBell
255,000 miles on an 07? You must drive a lot.

Maybe he meant 1907

:-)

21 posted on 09/14/2007 2:03:52 PM PDT by Azzurri
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To: hubbubhubbub

“Where do they get people this stupid?”

They use Oprah’s magazine subscriber and viewer lists, I believe.


22 posted on 09/14/2007 2:03:58 PM PDT by flowerplough (Not a sociopath, merely a delusional narcissist.)
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To: Azzurri

An electric car no less

23 posted on 09/14/2007 2:05:56 PM PDT by BurbankKarl
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To: COBOL2Java
Unionization removes the individual incentive to excel. If you have a guaranteed 30$/hr job, no matter what you do, why try?

Competition works. Labor needs it too.

24 posted on 09/14/2007 2:08:15 PM PDT by TChris (Has anyone under Mitt Romney's leadership ever been worse off because he is Mormon?)
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To: JamesP81
I'm currently on my second Ford truck (my last one was an Explorer, this one an F-150), and I love them.

I still have the old one, too -- with 325,000 miles on it.

25 posted on 09/14/2007 2:09:10 PM PDT by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: TChris
Unionization removes the individual incentive to excel. If you have a guaranteed 30$/hr job, no matter what you do, why try?

Competition works. Labor needs it too.

The same truth can be applied to our public schools...

26 posted on 09/14/2007 2:14:06 PM PDT by COBOL2Java (The Democrat Party: radical Islam's last hope)
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To: COBOL2Java
The same truth can be applied to our public schools...

Yep. A union's a union.

27 posted on 09/14/2007 2:14:56 PM PDT by TChris (Has anyone under Mitt Romney's leadership ever been worse off because he is Mormon?)
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To: SampleMan

You hit on the other factor, design, that isn’t in the survey.


28 posted on 09/14/2007 2:17:29 PM PDT by art_rocks
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To: JamesP81
...but I'm seriously considering a Silverado as my next vehicle.

I like my 2001 2-wheel drive which I bought for an excellent price just as it was coming off the the 36,000 mile warranty. Paid for an extended to 100,000 miles which I used only for a water pump and for an A/C sensor. Now at 117,000 and the driver-side door power lock actuator and fuel gauge are acting up. At seven years old, still get between 16 and 18 mpg which for a full-size P/U is good. Get to drive at 70-75 mph on the roads out here and is very comfortable. I may retire before I buy another P/U, but if I did, I'd get a new Silverado with the active fuel management (shuts down four-cylinder firing if not needed).

29 posted on 09/14/2007 2:23:36 PM PDT by CedarDave (Vietnam vet supporting today's freedom fighting men and women and their families.)
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To: oust the louse

Why not just take your friend to the dealer with you. Use his coupon, buy and title the vehicle in your name, pay your friend $200 for his time and take he and his wife to dinner.


30 posted on 09/14/2007 2:26:21 PM PDT by Sgt_Schultze
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To: BurbankKarl
An electric car no less

Not hardly, unless it's a very, very early hybrid!! (Notice the hand crank in front and the text says it has dual carbs.)

31 posted on 09/14/2007 2:26:56 PM PDT by CedarDave (Vietnam vet supporting today's freedom fighting men and women and their families.)
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To: COBOL2Java

The Japs give better customer service at U.S. dealerships than do the Big 3 U.S. carmakers.


32 posted on 09/14/2007 2:35:20 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: lesser_satan

One time I told a guy here that I had a W02 sticker on my car. Oops should have been W04. Anyway I bet it had a 318. My 92 Dakota had around 179,000 on it and was still running good when Katrina took it away from me. My current 95 or 96 Dakota, can’t remember which year it is, has around 110,000 on it but it has one of those Magnum V6’s in it. Seems to be doing fine.


33 posted on 09/14/2007 2:50:19 PM PDT by BBell
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To: BBell

Yep! The 318 is a tough little motor.


34 posted on 09/14/2007 3:08:49 PM PDT by lesser_satan (FRED THOMPSON '08)
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To: COBOL2Java

I’ve suspected this for a long time. I recently bought a new car and had narrowed it down to four vehicles, the Toyota Camry, The Honda Accord, the Hyundai Sonata and the Ford Fusion.

I ruled out the Camry because I’m sick to looking at them and their indifferent handling. The Honda Accord scored an A- and I liked it a whole lot (but I do not like the bloated new 2008 styling). The Hyunda Sonata is everything the Accord is and possibly a little more. The resale is not yet there but I believe it will come along as more people look at and drive them. There is a lot of car there. I had previously looked at about three Fusions and ruled it out as my wife didn’t like the dash. Drove into the big city to take a good long test drive of both the 2007 Accord and Sonata. Liked them both just fine and the prices were quite competitive. Frankly, I really couldn’t make up my mind. The Sonata’s trunk mechanism is superior to the Honda but the Honda’s resale and bulletproof reputation is indisputable. On the way back home I decided to drive by the local Ford dealership and just take one final look. That day a new 2008 Fusion SEL rolled off the transport that caught my eye and the 2008 incorporated some previous options now standard in the base price. Looked at the sticker and called the dealer to let me drive one one more time.

Guess which one I bought. I’ve had it for three weeks now and 1100 miles. No regrets.


35 posted on 09/14/2007 3:12:40 PM PDT by RichardW
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To: COBOL2Java

Until one of the Japanese auto makers comes out with a muscle car I will be taking a serious look at the new Challenger SRT-8 and Camaro SS.


36 posted on 09/14/2007 3:48:49 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: COBOL2Java

Greedy american Unions...........killed the US auto industry


37 posted on 09/14/2007 3:53:10 PM PDT by ulm1 (“There are scandals that need to be addressed. Republicans address them, Democrats re-elect them.”)
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To: hubbubhubbub
A would be car buyer can’t tell a Camry? Where do they get people this stupid?

The same place they get the salesmen. Who often have the same problem.

Car dealers really hate it when the customer knows more about what they're selling than they do. ;-)

38 posted on 09/14/2007 4:27:52 PM PDT by uglybiker (relaxing in a luxuriant cloud of quality, aromatic, pre-owned tobacco essence)
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To: zek157
My 2000 Ford died last summer at 84K. In hind sight the probles surface following the 60K checkup.
I now have a Honda. Will never own another American car made by UAW’s.

Japanese car owner since '72, married into a GM family.

Impressed with American improvements (from wretched mid-70s Fords to fair late-90s GM), but am sticking with Japanese cars, which I generally retire at 250k miles. After 30 years of driving Hondas am letting go of same because it costs way too much to maintain their cars. They gouge, I go -- and it will be a long time until I return, if ever.

Suzuki (Geo) my transport right now. Approaching 140k miles, a rough point where multiple things fail, they're being tested. If they pass the test, I'll stay with them for years (and maybe another mini-SUV, because they got this one right). If they don't...

39 posted on 09/14/2007 5:54:19 PM PDT by sionnsar (trad-anglican.faithweb.com |Iran Azadi| 5yst3m 0wn3d - it's N0t Y0ur5 (SONY) | UN: Useless Nations)
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To: JamesP81
Camry'sToyotas are boring; their only redeeming quality is that they are reliable, fuel efficient transportation.

Your statement is correct, just not broad enough in its scope. I enhanced your post a bit.

40 posted on 09/15/2007 4:24:17 AM PDT by Hardastarboard (DemocraticUnderground.com is an internet hate site.)
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To: COBOL2Java

I use rentals on business travel, invariably domestic and they’re ok. The issue isn’t initial quality so much as reliability and durability.

In 1992, the two most popular cars in America were the Taurus and Camry. How many 1992 Tauri are still on the road?


41 posted on 09/15/2007 4:37:59 AM PDT by Lonesome in Massachussets (NYT Headline: Protocols of the Learned Elders of CBS: Fake but Accurate, Experts Say)
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To: oust the louse

We recently took delivery of an ‘07 Outlook and got the $1000 incentive because the ‘08s had just come out. Shopped foreign and domestic in the SUV/crossover class, looking to replace out beloved Durango that got totaled in an accident. The Saturn won hands down.

I believe GM has a real winner in their new Lambda platform. Very good power (Cadillac DOHC V-6) and road manners, comfort, and the fit and finish is impeccable, probably the best I’ve seen in a GM vehicle. As it has broken in, the mpg is approaching that listed on the “real world” EPA window sticker. I aim to surpass that with a K&N air filter and switching to synthetic oil after 1000 miles. BTW, the Outlook was thousands less than the sister Lambdas GMC Acadia and Buick Enclave.


42 posted on 09/15/2007 5:22:17 AM PDT by prairie dog
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To: SVTCobra03

“Until one of the Japanese auto makers comes out with a muscle car I will be taking a serious look at the new Challenger SRT-8 and Camaro SS.”

Why? Do you live in a trailer park?


43 posted on 09/15/2007 5:42:03 AM PDT by libertybell
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To: libertybell

Are you as ignorant as you sound? The new Challenger SRT-8 and Camaro SS will cost in excess of $40k.


44 posted on 09/15/2007 7:01:30 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: JamesP81

I love my 2002 Silverado 3500 dually Extended cab with the 8.1 (496 CID) engine 4x6 that has been customized heavily with all lights LED, 6 HID lamps in the headlights and fog lights, Pioneer sound system and of course the truck was fully loaded with heated seats and accessories from the instrument panel and outside dimmable mirrors from an Escalade. There is a lot more items like sequential LED lights under the tailgate and numerous show truck items from my years when I built custom show cars.


45 posted on 09/15/2007 7:15:51 AM PDT by Eye of Unk
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To: Lonesome in Massachussets
I use rentals on business travel, invariably domestic and they’re ok. The issue isn’t initial quality so much as reliability and durability.

Exactly. I purchased a Ford in the 80s back during the "Quality is Job One" ad campaign. Actually believed their claim. The engine developed problems after about a year (yes, I followed maintenance procedures). Got rid of it after three years of "Fix Or Replace Daily". Went next for a Toyota that gave me 10 years of reliable service.

In the 90s, I fell for the Saturn advertising (a "new" company, built new from the ground up) and got an SW2. Engine was fine, but it was plagued by electrical problems after about a year.

Replaced it with another Toyota, and I ain't looking back. EVER.

46 posted on 09/15/2007 7:20:56 AM PDT by COBOL2Java (The Democrat Party: radical Islam's last hope)
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To: COBOL2Java

47 posted on 09/15/2007 10:21:15 AM PDT by Gritty (Quality of argument is only important if you want to win by persuasion, not intimidation-Mark Steyn)
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To: COBOL2Java

In fairness, my daughter had a 2001 Corrolla that had a leaky oil pump that led to a wrecked engine. Bernardi Toyota (Framhingham, MA) stood tall and rebuilt it. (I personally think she may have been doing 75 with the red “OIL” light on, but Toyota took the hit.) A lot of Corollas had the same problem, most of the owners probably got them fixed before disaster struck, i.e., fixed the leak before the engine blew up.


48 posted on 09/15/2007 7:07:58 PM PDT by Lonesome in Massachussets (NYT Headline: Protocols of the Learned Elders of CBS: Fake but Accurate, Experts Say)
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To: prairie dog
Hey Dog,glad you worked something out on the 07. I just spoke with my other buddy who actually works at GM in one of the plants and he's going to get me a GM discount. That will be a huge plus. I'll feel like I've at least won...

By the way,the price is why I went with Saturn because the GMC Acadia was always pricing out at about 1200 more no matter how I did it. FWIW...I went with White Diamond Tri-coat,advanced audio,19" polished wheels and captains chairs/cloth.

49 posted on 09/16/2007 3:00:43 PM PDT by oust the louse ("NEVER LET THE ENEMY PICK THE BATTLESITE".....General George S. Patton,Jr.)
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To: Hardastarboard

Thanks for proving my point. If these car buyers are looking for reliable transportation, then chances are they are doing some research.


50 posted on 09/16/2007 3:31:17 PM PDT by hubbubhubbub
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