For those interested here is a link to the terms for the loans for each company. GM and Chrysler.
http://www.treas.gov/press/releases/hp1333.htm
http://www.treas.gov/press/releases/hp1333.htm
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Inventing--and reinventing--the civilian Hummer
Not many people know that Schwarzenegger personally invented the civilian Hummer. The maker of the military version told him that it could never be made street-legal, so Schwarzenegger bought one and spent $100,000 of his money to show that it could be done.
Schwarzenegger's action helped launch the brand that is the very symbol of greenhouse gas gluttony.
That original Humvee, which Schwarzenegger still occasionally uses to ride around Los Angeles, has now been modified to run on cooking oil. "You can literally go up to a restaurant and get cooking oil," he told Pelley.
Now he has reinvented the vehicle with green that's more than skin-deep. He has one variation that runs partly on hydrogen, and this one has an engine modified to run on biofuel. "I mean, it runs, basically, on anything. Anything natural," he said, as he took Pelley for a ride in it.
If that's true, there's still a nice profit margin built in there paying for those corporate jets, private flight crews, hanger storage, etc.it costs about $1,255 to manufacture an average family car, but when were talking a luxury vehicle or sports car it costs about $2745.
Where are the threads for the Finance Companies?
Where is the complaints about them?
Rich,
When I was first looking for a car back in the 90's, I saw an ad for a car, a Sprint or Spirit or something that was listed as getting 60MPG. Where was this listed as the MPG? In a national publication used by car buyers and sellers everywhere. I believe it was an 86 or 87. Manufacturer was AMC.
I know someone who has worked in the auto industry a decade or 2 longer than you have, who told an interesting story of an experimental prototype that was accidental sold. It was sought out and bought back by the manufacturer for a rather nice profit.
"There is no way that any company would not release such a product."
Of course there is. If there is more money to be made in products that need regular replacing, who would make one that doesn't? I have first hand knowledge of one company who made a rock solid low maint product. They went under because their competition sold cheaper less reliable products.
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Bottom line Rich is, I think it's easier for them to sell the same old stuff, than to really innovate. I don't consider a dvd player in the car an innovation. I don't consider making it so you need a hoist to lift your engine out to change your spark plugs, progress. Home brewers have been doing what GM and Ford don't want to do. Eeking out those boosts to fuel efficicncy far beyond the miniscule "Federal Requirements". If some backyard mechanic can do it, why can't the brain trusts at the experts do it? I think you yourself answered that one. Economics. It's cheaper to continue to move forward by millimeters, than to leap ahead in a bound. After all, who buy's $100,000 electric cars? Not the average joe out there who's wondering how much profit is still on the able with Fords recent big price drops. I've heard 40% is a fair commision at a dealership (again, same national car expert book).
So, how much does it cost to make a car today in the US, really?
If that's true, there's still a nice profit margin built in there paying for those corporate jets, private flight crews, hanger storage, etc.
I'm in the wrong business. My private plane sits in a display case and cost me $13.
Rich, I just googled 60mpg, I get quite a few links. I posted some.
My understanding of the experimental was it was specifically the carb. That was the part that was bought back. If I get a chance I'll get more detail, but I haven't spoken to that person in 2 years, so it's unlikely I'l get more than I offered.
I read that GM sells a minivan in China that gets 50-60MPG, and sells there for under $7k. I read on another site that the -cost- of a car in the US is under $2k, yet sells for $15k. That's with all the us requirements. If that's true, then why can't they sell that same car here? You cite differences between nations requirements, but honestly, if a per unit production cost is $2k, once you tool up the factory (that's what/ $75 Mil?) at $15k per car, they only need to move 5,000 units to break even. I think GM sells more than that each year.
Mind you, I'm not arguing on American's buying gas guzzlers and avoiding eco cars. People wanted 6MPG Hummers, they got em. At $4 a gallon, I don't know anyone who drove em much this past summer though. I liked the early model Scion xB's. 31MPG. But they beefed em up, and theres not much difference between them and any other minivan anymore. I liked Saturn, but now they make generic GM cars. My family were Ford people, but when the Taurus gets 17MPG and costs $10k more than the Toyota Corolla with 35MPG.....well. My uncle recommended Mazda for years. Yeah, I know, Ford/Mazda what's the difference? Seemed the Mazda shops were just better at finding and fixing the problems than the Ford shops were (His Mazda truck btw, 400,000 miles on it I heard)
wrong answer.
perfect example; the auto industry
it is regulated to DEATH, yet they apparently cant turn a profit. In part at least BECAUSE of regulation,t he STUPID CAFE standards make it tweice as hard to turn a profit as it should be.
Better example: Fannie and Freddie
regulated beyond measure, both failed
regulation doesnt work, when it is GOVERNMENT regulation
government is by definition, inept.
Let the public regulate the business
good example, in the 70's, other than trucks, everyone KNEW not to buy a Ford.
Fix or Repair Daily
Found On Road Dying
sound familiar?
we didnt need the government to tell us that ford had quality control issues.
Wrong answer, perfect example, the financial sector.
Even the biggest zealot of an unregulated free market, Greenspan , admits now he was wrong.
http://www.ecademy.com/node.php?id=114844