Automakers hit 'significant storm,' as buyers reject lofty prices at time of huge capital outlays

Just imagine if Investors and consumers could work together to corporates Honest and People oriented.

NEVER.

Why is the main stream media so afraid of the word 'China'?

Wall st donors (heavily invested in China) 4 months out from election?

China has severely distorted its own auto market, destroyed it almost, it's now exporting the chaos globally. If you don't stop them, there's going to be calamity everywhere.

Simply put, consumers are not very interested in the over-priced choices presented. EVs are not what the majority of potential buyers want, and all the sophisticated additional equipment causes the insurance rates to increase sharply. These two factors make new vehicles unaffordable to many, especially those who have been impoverished by Bidenomics(Harrisnomics).

Canadian tax payers got jolted as a company that that Trudeau government "invested in" halted a $2.7B battery project. The first of many EV projects funded by Trudeau that has run out of gas as soon as taxpayers "chipped in."

This is what happens when wages don't keep up with inflation.

Every single time. Boom bust price gouging is never sustainable.

The very last thing I woud ever buy is an over-priced EV, especially a large one. These manufacturers are now producing their cars at pre covid levels, but the majority of consumers are still suffering from them.

How about a simple car, not a big pickemup truck, but a car with minimal equipment, manually adjusted seats, no "infotainment", just a good AM-FM radio with CD player, cloth seats (leather just doesn't work in the southwestern US) and keep the price down? Spare me the full time four wheel drive and all the other automation. And at least let me order a manual transmission.

And whatever happened to simple pick up trucks? A pick up truck used to be a cab with a simple bench seat, rubber floor mats, a straight six under the hood and usually some sort of manual transmission. Now trucks have become so fancy inside you don't want to take them out into the desert or the mountains and get them dirty. And there are so much complex electronics in them I'm not sure I trust them in the desert in the summer.

This bodes well for a reduction in U.S interest rates and a stronger yen!

Good good good !!

Tavares said the company's prices are too high, causing potential buyers to leave showrooms without hearing about low-interest financing and other discounts.

This one kills me!

Toyota in North America is offering 0% to 1.5% interest rates financing (according to their advertising).

Federal Interest rates in north america are 5.5% USA to 4.7% Canada.

But when we looked at changing our car here in Japan (Bank of Japan 0.10% ) we were told Toyota financing was 7%.

The story was basically the same at the other Japanese car Makers.

Then we looked at plug in hybrids and the non plug-in are on average ¥1 million cheaper and at the price of electricity in Japan there is no way in the life time of the car we would ever save ¥1 million.

Desert Tortoise

Today 01:08 pm JST

How about a simple car, not a big pickemup truck, but a car with minimal equipment, manually adjusted seats, no "infotainment", just a good AM-FM radio with CD player, cloth seats (leather just doesn't work in the southwestern US) and keep the price down? Spare me the full time four wheel drive and all the other automation. And at least let me order a manual transmission.

Because they cannot then get you with the monthly subscription charges to get parts of your car to work despite those being installed and available.

Example was BWM having a plan (which they now dropped due to public backlash) of charging up to $18 a month for you to be able to use the pre-installed heated seats.

Then there is the "proprietary" software.

A friend in Canada his car stopped working.

He lives in a northern area of Manitoba, no garage in the region had the needed software to connect to his car because the licensing was not worth it for them.

The maker told him they would pick up the car and bring it to the nearest authorized repair centre 500km away but he had to pay the pick-up (towing) fee.

By putting in as many "high end" computer dependant gadgets, the companies monopolise the maintenance and repairs, they can also as was originally planned by BMW make many things a monthly subscription getting you to keep paying them for a car you own.

Basically it is all a scam!

proxy

Today 08:17 am JST

Canadian tax payers got jolted as a company that that Trudeau government "invested in" halted a $2.7B battery project. The first of many EV projects funded by Trudeau that has run out of gas as soon as taxpayers "chipped in"

It was not just Trudeau (feds) but Ontario gov also.

The killer is "why" the project was halted!

The plan was a major contract to sell to Chinese EV car makers!

Those contracts never materialized anyone want to guess why?

Provisional duties ranging from 17.4 per cent to 38.1 per cent may be imposed on imports of Chinese-produced EVs starting July 4, 2024

Yes the government excepted that this company would sell batteries to China then basically blocks Chinese EV imports before the contract was signed!

What a clown world!

The best choice is to buy a classic car made before all of the newer "high-tech" features.

I'll continue rocking my 2010 Mazda3. I'm not driving as much anyway working from home half of the time. It goes in for its annual check up this week. It still runs like a champ.

Lots of Toyota are , being called back, because the engine are catching on fire Google Toyota Engine Fire Recall

Subaru are a better choice than Toyota catch on fire recall disaster cars.

The automakers have no one to blame but themselves. They've been busy killing off affordable, simple, entry level vehicles in place of oversized but highly profitable SUVs and trucks. Ford stopped making passenger cars altogether, Chevy killed off the Spark and Sonic, and even Honda stopped selling the Fit in the US. Good luck finding something "cheap and cheerful" on most carmaker lots these days. Shocklingly, not all consumers are willing to take out a 5 or 6 year loan on an $80k pickup.

Carlos Tavares, CEO of Jeep and Ram maker Stellantis, said a significant auto-industry storm he's been warning about for several years has arrived. “We are in it,” he told reporters after releasing disappointing earnings Thursday. “For me, it's a no brainer that this industry is going to be in turmoil.”

this is so funny.

he's the highest paid ceo in the industry and the brands have lost revenue and market every year for the last 6 years. hasn't been warning anyone about anything.

dealers for ram and jeep have lots overflowing with inventory they can't sell. they went to him for help and ideas to move inventory. he listened and after a week, told them to buy more inventory.

lol

In fact we have not the problems in car industry only, as they produce or have in store the cars for all different buyers' interests and price ranges as they always have or had done before, no, we have significant structural problems in the whole Western hemisphere and its economies, which are simply ruled by capitalism, a synonyme for ruled by growth at all costs and strategically under all thinkable conditions. And currently, when you look around, there is no sufficient or significant growth, not in the population number, not in education levels, so that the more and more and higher qualified people then have more long-term and higher paid jobs, then have the time and conditions to make more inventions and bigger sales globally and then have in return the money to buy things like expensive cars and the trust in future to meet a partner for marriage and even more next children and so on, and of course no growth in income levels, so that the people can consume the products that are produced, in this specific case here some cars. Growth is the one and only decisive point, no matter if you agree or disagree, prefer instead a de-growth, more ecologically friendly life or whatever else nice colorful ideas, preferences, wishes or utopies. That all won't work or help. Capitalism means and strictly demands just only growth everywhere. Period.

The automakers have no one to blame but themselves. They've been busy killing off affordable, simple, entry level vehicles in place of oversized but highly profitable SUVs and trucks. Ford stopped making passenger cars altogether,

Ford stopped selling the Focus in the US last year and this is the last year for the Focus based Transit Connect van. Imagine, a simple van with doors that don't close themselves and no infotainment. No TVs on the back of the headrests or any other electronic clutter. Just a simple, tight good handling, very car like van. We have one and love it. But no, Ford wants us to buy one of their big sloppy handing over priced and over equipped SUV things.

Shocklingly, not all consumers are willing to take out a 5 or 6 year loan on an $80k pickup.

If I can't pay cash for it I don't buy it. My parents taught me as a kid that it is better to save money and have the bank pay you interest than to borrow money and pay the bank interest. But you all keep up your borrowing so the bank can pay me interest. Thank you very much!

quote: How about a simple car.

Get a used one, preferably a classic/collectible, and get a good mechanic to refurb it back to showroom fresh. It will hold its value if you look after it.

Ford stopped selling the Focus in the US last year

And in the UK, where the Focus and Fiesta had topped sales charts for decades; which was a problem because Ford managed to lose money on most of them unless customers took out finance with them.

The decline of the Blue Oval in Europe has been excruciating to watch - and entirely self inflicted. At least GM knew when to get out, flogging Vauxhall/Opel off to Tavares several years ago.

Many years before that Soichiro Honda predicted that in the future there would be just half a dozen car companies globally...... and Morgan. I reckon he was right on the money.