Posted on 03/03/2009 3:43:34 PM PST by Smogger
bttt
Here's another definition of murder I heard on CNBC late last night:
The annualized "crush rate" in the U.S. is 12.5mn cars, but the annualized sales figures of new cars is 9.Xmn. (The U.S. market is--or was recently--geared for 16mn units annually.)
Demand has contracted violently...murderously.
Quarterly loss of course. My bad.
Could you change the title to reflect that this is a quarterly loss. :-)
Who be the buyee and who be the buyer?
I don’t know. They have had some good news, as of late, in that they won 5 new contracts. The last two are defense related as sub contractors to Lockheed and BAE-worth 20 billion.
They’ve also done quite a bit of cost cutting with senior exec’s taking a 10% cut, and they closed 2 plants. One of which, in Ontario Canada, will help save American jobs. Sorry Canada.
I hope they make it.
Tax cuts. Incentives for businesses manufacturing in America and employing Americans. Waiving some EPA regs, and closing of loopholes that make it more advantageous to manufacture in Mexico than the US.
I’d also like to see them close some of these plants, in favor of American plants and American workers.
Commercial Vehicle Systems in Monterey
Wheels facility in San Luis Potosi
Roof and door module facility in Puebla
Ride Control Aftermarket facility in Queretaro
Commercial vehicle aftermarket warehouse in Escobedo
Sistemas Automotrices de Mexico joint venture in Monterrey that manufactures axles, brakes, and drivelines for the North
Very interesting, thanks for posting. And I bet Toyota will get what it wants, without months of negative publicity in the Japanese media. Then again, the Japanese media do not hate their own industry and workers, unlike the American media.
Nissan already stepped up and asked for a bailout.....
From the US government....
http://www.tennessean.com/article/20090209/BUSINESS01/902090334
Heck, why not? They’re more dependent on imports from Mexico than any of the domestics, and that seems to be what congress wants - dirt cheap labor....
Of course the not-so-brilliant analyst on Fox News was pointing to three of the biggest sales “losers” - the Hummer H3, the Dodge Durango, and the Ford Expedition.
Never mind that production of the Dodge Durango had ceased late last year, so they weren’t building any more to sell.
And the Ford Expedition has been out of production since the beginning of November as they move production from Michigan to Kentucky.... production isn’t set to restart until the end of the month. Similarly - kind of hard to sell trucks you aren’t building as fast as you did when you were building them.
I must add this — Ford makes a profit and sells quite a lot of cars in Europe (see the Ford Ka) and Latin America, while GM cars practically fly off the shelves in China and India — they have double digit growth in both countries. In the US, however, legacy costs are killing them
Yes, the new America head is planning on removing all of those extra pricings and returning Toyota to what it does best — deliver cheap, extremely high quality cars that are VFM
Buying a gas guzzler wouldn’t be wise — just like $145 a barrel was an aberation, oil at $35 is the other extreme. Oil will eventually this year stabilize at $70 odd a barrel — translating into more expensive gas at the pumps.
Oil prices are out of Obama’s hands — it just spiked up yesterday following Iran’s missile news and news from Russia. Keep in mind oil at about $2.5/ gallon to $3 and make your decision based on that — I have no doubt it would fluctuate around that mean, but that’s going to be the average price of oil from now on — in my opinion.
my take is that the huge hike in demand was an aberration this past decade — fuelled by excessively cheap financing
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