Thursday, August 10, 2006

AMERICAN BUSINESS: LEADING THE WORLD INTO THE 21ST CENTURY

From the "Wait, Lemme See If I Got This Straight" Files, we learn from A.P. that General Motors -- that'd be one of those "struggling American automakers" -- is bringing back "its Chevrolet Camaro muscle car in 2008, the automaker's chairman and chief executive [Rick Wagoner] said Thursday."

Let's review, shall we?

* Oil prices are high, and going up.

* Pump prices go up as oil prices go up.

* Wages haven't risen in years.

* Muscle cars, because of their greater horsepower & acceleration, use more fuel than cars with less horsepower & acceleration.

* Cars that use more fuel, need to be filled up more often.

* Supposedly, GM seeks to earn a profit.

What's wrong with this picture?

14 Comments:

Anonymous karen said...

have you never heard of conspicuous consumption, which goes UP during times of economic downturn. This car will be a monyemaker.

11:53 AM  
Anonymous Mike said...

I've heard that conspicuous comsumption goes up during economic downturns.

I'm just not sure I believe it's true.

11:55 AM  
Blogger Thrillhous said...

I think it's more monkey see, monkey do. Ford has been selling the recently redesigned Mustangs like hot cakes.

Back when muscle cars ruled the earth, Mustang v. Camaro was a huge rivalry. Maybe GM's hoping they can get it going again.

Frankly, I'd rather see more muscle cars and fewer SUVs. They still don't chug gas like the SUVs.

1:00 PM  
Anonymous Mike said...

Ford has been selling the recently redesigned Mustangs like hot cakes

I fuckin give up!

Karen, maybe conspicuous consumption does go up with economic downturns. Sorry.

Sometimes facts are so depressing to me, I don't wanna believe them. Hmmmm, lessee here. I'm in debt, the dollar's going down in value, and gas prices are going up. I think I'll go further into debt to own something that'll force me to buy more gas. Yeah, that's what I'm a gonna do

Good grief.

I guess Denial isn't just a river in the Egypt exhibit at Epcot afterall.

1:06 PM  
Blogger Otto Man said...

As long as it has horns all over the place. You can never find a horn when you need one.

2:07 PM  
Blogger DED said...

I have to agree with Thrillhous on this one. The Mustangs have been a big hit for Ford, as it slides into the pit.

I wrote them and suggested that they try to make a hybrid Mustang. Lexus has already proven that you don't have to sacrifice luxury for fuel economy. Performance? Just ask one of those electric car dragsters out West.

As for buying a muscle car during an economic downturn coupled with $3+ gas, a wise man once said:

When the world is running down, you make the best of what's still around.

2:34 PM  
Blogger Mr Furious said...

More Motor City wisdom and foresight...

[link] ...But unlike SUV drivers, many of whom don't need a hulking vehicle for daily use, most pickup drivers actually use their vehicles in their line of work. So whether or not they like paying $3 a gallon for gas, they're stuck doing so.

At least, that's what the industry assumed. But pickup buyers are proving to be more elusive than previously thought. In the second quarter, pickup sales accounted for 12.7% of the overall auto market — nearly 2 percentage points less than a year ago.

"We underestimated the swiftness of the segment changes,"
Mark Fields, Ford's (F) president of The Americas, said Wednesday at an industry conference in Traverse City, Mich.

So what explains the drop in pickup sales?

About 75% of pickup buyers use their vehicles in their jobs; the remaining 25% don't need a pickup's capability for their day-to-day life, industry figures show. That smaller group is most likely fleeing from high gas prices, trading in their trucks for sedans or compact cars.


Do these car company clowns ever get out and walk/drive around? Countless people drive pickup trucks for no work-related reason. I'd even question that "25%" figure.

For them to be depending on pickup sales to carry them to profits is beyond stupid.

3:04 PM  
Anonymous Mike said...

Sting is a Wise Man?

Furious, I'm with you. I know a few folks with pickups, and they're not exactly hauling pipe or clearing dirt mounds.

The only heavy lifting they're doing is for the oil industry.

3:48 PM  
Blogger Steve said...

LMAO Mike. This has been the problem with Detroit for years. They just don't get it.

8:45 AM  
Blogger DED said...

Just trying to be funny Mike. Looks like I failed.

9:43 AM  
Anonymous Mike said...

Ded! It was funny.

But you know I can't resist a stupid put down (plus, I had to demonstrate to all that care that I knew the song you quoted). I'm a geek, what can I tell you?

9:49 AM  
Blogger Weaseldog said...

"Ford just announced the recall of 1.2 million cars. They good news? Ford sold 1.2 million cars." - Stephen Colbert

10:53 AM  
Blogger Alan P. said...

I have a '97 Ford pickup truck, rarely drive it anymore. If Ford thinks I'm buying another 18 mpg behemoth they're crazier than a hoot owl. My next car may be a scooter. I can use the truck for emergencies.

11:25 AM  
Blogger sm_landlord said...

I guess it all depends on what they charge for the car.

I am still hanging on to my '88 Mustang 5.0, which drinks fuel but goes like crazy, and my '68 Vette. I didn't buy the last Camero because it was built for people shorter than 5'8". Same reason I don't own a Lotus.

I don't care if gasoline goes to $8.00/gallon, I'll always keep a muscle car in the stable for fun. I just won't use it for long daily commutes, if I ever have to do those again. The difference in price between an American muscle car and a Ferrari will buy many tanks of expensive gasoline.

You have to understand that these are niche cars, essentially the frugal man's Ferrari. They don't sell a lot of units, they're more about brand-building and getting people into showrooms. Like the Corvette and the Viper, but for budgets under $50K.

2:10 AM  

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