Thursday, 11 April 2019

Adios Detroit, it was a swell ride while it lasted........................from Rico

I wouldn't be buying shares in an American Car-manufacturer today, either one of them* (Ford or Government Motors...I'm not sure Chrysler-Fiat can still be called an American Car-manufacturer).
- More 'hard times' are ahead for auto dealerships as well.
1. Because the average price of a new car in America is now $36,534.
2. Because the median household income in America is $61,891 gross (before taxes, mortgage/rent, food, healthcare, etc) which is closer to $35-40K in net income. Do the math here and say 'hello' to financing.
3. Cars have become fugly and disposable 'appliances' (instead of the fast-fun-unique works of art/design they once were), and depreciate almost as rapidly as they wear out...leaving you 'upside down' (owing more on the financing than the plastic thing is worth).
It's not only a 'rough road' ahead for American cars, it's soon to be the 'end of the road' for them.
- Americans will soon have no choice but to 'buy' (finance/lease) foreign manufactured passenger vehicles.
*Post-WWII America had over 10 Car-manufacturers, now there are arguably two...and Ford announced it was halting production and sales of passenger cars in North America at their last stock-holders meeting. I'd bet Vegas odds GM will eventually follow suit.


Anonymous said...

I have driven antique cars ONLY (No modern cars) for 51 years. My cars are from the 1930s and 50s. Never bought a new car, never will

Drew458 said...

"I'd bet Vegas odds GM will eventually follow suit"

I seem to recall that Vegas were a bet GM lost. And now even the Lordstown factory where they made them has been closed.