Topic: The Detroit 3 cash crunch: How bad is it?

[inco]

Oil prices are making fools of all the manufacturers and not just confined to the Big Three as we call them in North America. I don't think some of the bean counters at Toyota, Nissan or even Honda are very happy with the product planning departments.

After such big fanfare about going after the scared grounds of American trucks, look what's happened. Nissan can't quit fast enough, Honda is cutting back production (second Canada plant being switched to Civics) and Toyota is also hurting with truck sales. Who knew how volatile this would become.

Is this 1973 all over again?  Don't think so - I can't see oil prices coming down to levels that would kick start production again and the days of excess are numbered and permanently etched into our wallets.

Sure it's all bad - but there is good too. Now we think twice about some expenses, and many are literally dumping their big automobiles. And if they don't they are at least doing more planning rather than spur of the moment things.  That's the good part because we are now having to think conservation. Yeah I know it took a rifle pointed to the head to make it happen - that's a flaw we have built in. But it's happening and thats a good thing in my books.

[Leviathan]

Hate to ask    but what's a MIL ?

One "F" shy by the looks of it...

[Mitlov]

Oil prices are making fools of all the manufacturers and not just confined to the Big Three as we call them in North America. I don't think some of the bean counters at Toyota, Nissan or even Honda are very happy with the product planning departments.

After such big fanfare about going after the scared grounds of American trucks, look what's happened. Nissan can't quit fast enough, Honda is cutting back production (second Canada plant being switched to Civics) and Toyota is also hurting with truck sales. Who knew how volatile this would become.

It's true.  Toyota wasn't really prepared for US$4.50 either.  They're currently in the midst of an ad campaign down here touting the Sequoia (with its body-on-frame design and 5.7L V8) as a perfect family vehicle.  There's one ad where they use it to carry big wheels (tricycles) up a hill and then they race the big wheels back down.  Is that really something you couldn't do in a Highlander or Sienna?

Also, a year ago, Steve was touting that the Tundra was going to be a huge profit success because it would be selling primarily to private owners as their do-everything half-ton, whereas only people looking for work trucks (much lower profit) would be buying Detroit Three half-tons.  The Tundra certainly was aimed at the private owner...a CrewMax doesn't make much sense on a ranch or a construction site.



I suspect that CrewMax sales have dried up, though, as gas passed US$4 per gallon.

And it's not just truck manufacturers.  Autoblog: BMW calls CAFE "not feasible"

[ArticSteve]

Mother in Law or Malfunction Indicator Light.    I cannot imagine which one Barrie means.

   I knew I should not have asked.  Although I think you touched on something profound. 

[tpl]

"And it's not just truck manufacturers.  Autoblog: BMW calls CAFE "not feasible""

Reading the comments on that Autoblog I see that the posters are quite aware that BMW is full of sh1t as they do make a complete line of cars that can reduce their CAFE fines to zero.... even a 730D.  All they need is a boat to bring them,  some Bluetec gear and a new set of adverts for the cars.

[ArticSteve]

Toyota is also hurting with truck sales. Who knew how volatile this would become.

Agreed, 1/2 ton sales are hurting bad, but Tundra for period ending May/2008 is up.

June 3 (Reuters) - The following are the 20 top-selling
vehicles in the U.S. through May of 2008 as reported by the
automakers. Total sales of the top 20 vehicles fell 3 percent or
-73,755 units to 2,347,879. Following is a list of the top-20 selling vehicles, ranked
by total units.
RANK VEHICLE                     2008     2007  '07 RANK %Chng
  1 Ford F-Series P/U           235,924  290,282      1  -18.7
  2 Toyota Camry                198,309  193,900      3   +2.3
  3 Chevy Silverado-C/K P/U     197,030  265,941      2  -25.9
  4 Honda Accord                166,158  153,431      6   +8.3
  5 Honda Civic                 164,994  137,288      8  +20.2
  6 Toyota Corolla              152,308  165,722      4   -8.1
  7 Nissan Altima               133,465  114,318      9  +16.7
  8 Chevrolet Impala            122,281  144,541      7  -15.4
  9 Dodge Ram P/U               112,795  154,143      5  -26.8
  10 Ford Focus                  105,499   77,732     15  +35.7
 11 Chevrolet Cobalt             93,362   79,257     14  +17.8
 12 Honda CR-V                   89,017   84,464     11   +5.4
 13 Toyota Prius                 79,675   76,747     16   +3.8
 14 Ford Escape                  76,966   73,058     17   +5.3
 15 Chevrolet Malibu             74,925   59,627     26  +25.7
 16 Ford Fusion                  73,197   66,260     20  +10.5
 17 GM Pontiac G6                71,062   59,063     28  +20.3
 18 GMC Sierra P/U               70,765   84,106     12  -15.9
 19 Toyota Tundra                66,278   61,113     23   +8.5
 20 Ford Econoline/Club Wagon    63,869   80,641     13  -20.8
--------------------------------------------------------------

http://www.reuters.com/article/marketsNews/idCAN0340438920080603?rpc=44

http://www.canadiandriver.com/forum/index.php/topic,49080.120.html


Is this 1973 all over again?  Don't think so

Wasn't the 73 issue actual shortages; physical lack of oil?  In contrast to now where oil is used as a hedge against the value of the US dollar.

[ArticSteve]

It's true.  Toyota wasn't really prepared for US$4.50 either.  They're currently in the midst of an ad campaign down here touting the Sequoia (with its body-on-frame design and 5.7L V8) as a perfect family vehicle.

They're just trying to get rid of them.  It's called marketing.  Sequoia diesel and hybrid on it's way.  Same for the Tundra, although looks like small displacement V8s and not an inline 6 which I find disappointing. 

Also, a year ago, Steve was touting that the Tundra was going to be a huge profit success because it would be selling primarily to private owners as their do-everything half-ton, whereas only people looking for work trucks (much lower profit) would be buying Detroit Three half-tons.  The Tundra certainly was aimed at the private owner...a CrewMax doesn't make much sense on a ranch or a construction site.

As stated above, Tundra sales still up 8% as of May, 2008.  At least sales have not imploded like the Detroit 3.  When the credit market tanks and money is tight, the 1/2 ton buyers left are pretty serious buyers and when you compare all the offerings the Toyota represents the best mechanical unit and the best resale.  Hence Tundra is holding it's own.  I'm sure as conditions worsen in the USA sales will decrease.

CrewMaxs represent 40% in the USA.

 The Tundra certainly was aimed at the private owner...a CrewMax doesn't make much sense on a ranch or a construction site.

CrewMax makes total sense for construction or ranch, but since it doesn't YET come in 3/4 or 1 ton versions then for those that absolutely must have that weight then they gotta go domestic.  Now that soon will change and when it does the domestics will be really crying. 

[Triple Bob]

$4.50 !  You lucky lucky people!

    I can't wait to get my first V8!

[safristi]

..TRY a real mans drink BOB....a CLAMATO BLOODY MARY with tobasco and triple WODKAAH......fack tha sissy V8 juicers...............so when's yer release papers coming in from BRIXTON...have the OZZIES refused ya...

[Triple Bob]

..TRY a real mans drink BOB....a CLAMATO BLOODY MARY with tobasco and triple WODKAAH......fack tha sissy V8 juicers...............so when's yer release papers coming in from BRIXTON...have the OZZIES refused ya...

Sept!

[safristi]

..SELL.....SELL....SELL............................ ...paddle carefully now..................