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Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse now.

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  • Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse now.

    http://www.latimes.com/business/la-f...,6352198.story

    This was all preventable. Detroit simply did not plan for the future. $4 dollar (and rising) a gallon gas has been predicted for decades if anyone cared to listen.
    |TG-9th| TheFatKidDeath
    "Born to Party, Forced to Work."
    - Check me out on The Onion
    - I'm on the local news!

  • #2
    Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

    Good time to buy a truck right now! Overproduction and people dumping their used ones are depressing prices big time. Once the slashed production hits the dealer lots, super discounted new trucks will be a thing of the past.

    Back on topic: GM is idiot. They're also looking to sell Hummer right now. Who the hell would buy Hummer in this climate??
    A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

    "$250,000 a year won't get me to Central Park West."

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    • #3
      Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

      I don't think GM's leadership are idiots. They either consciously or unconciously decided to ride the SUV train right off the cliff - they might not have had a choice. SUV's and trucks were GM's highest-yielding products, so I think it's understandable that they would keep on pushing them out as long as people were buying them. Those days appear to have ended, so it should come as no surprise that they are 'restructuring.' Regarding Hummer, I don't know what kinds of profits they were seeing on the Hummer but it must have been significant enough for them to keep it for so long. Again, they probably made the conscious decision to milk that cow dry as well.

      The bigger question is how well prepared they are to enter a new, efficient and cleaner phase of automotive design and production. Probably not as prepared as their Japanese counterparts, but we'll see.

      If there is a silver lining to this cloud, it's about time that people got serious about efficiency of resources. We are finally starting to see this play out, and that's a good thing.

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      • #4
        Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

        Originally posted by AMosely View Post
        I don't think GM's leadership are idiots. They either consciously or unconciously decided to ride the SUV train right off the cliff - they might not have had a choice. SUV's and trucks were GM's highest-yielding products, so I think it's understandable that they would keep on pushing them out as long as people were buying them.
        You are absolutely correct. Well, at least according to our local news..

        It was reported in our local news that Ford (in this case) netted 2 to 3 thousand per SUV model sold but only $350 (yes, that is what they reported) per small car.

        I imagine GM was the same.
        sigpic


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        • #5
          Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

          Yes, trucks and SUVs are more profitable. But they're more profitable for everyone. So if Ford made $3500 on trucks and SUVs, then Toyota would have been making $3500 as well (actually, let's be realistic - Toyota was probably making more per vehicle). And yet we don't see Toyota in the same position as GM, do we?

          GMs leadership is idiot.
          A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

          "$250,000 a year won't get me to Central Park West."

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          • #6
            Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

            Originally posted by xTYBALTx View Post
            (actually, let's be realistic - Toyota was probably making more per vehicle)
            Yes they do.. I ran across that while I was looking for some profit margin info.. there was a news story about Toyota becoming the most profitable manufacturer per truck.

            I won't say GM leadership aren't idiots.. but their need to hang on to the large vehicle manufacturing as long and as much as they did has some basis in the good margins they had.
            sigpic


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            • #7
              Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

              Originally posted by xTYBALTx View Post
              Back on topic: GM is idiot. They're also looking to sell Hummer right now. Who the hell would buy Hummer in this climate??
              The same people that made Ferrari sales go up. One of my fellow teams in my marketing class, reported that interesting statistic for the first quarter sales of Ferrari. The average joe that couldn't afford a Hummer in the first place, but extended their credit far enough to drive off the lot with one and not pay that loan nor any other loan payment and gets their home foreclosed and Hummer repossessed, are the people that won't buy Hummer's right now....maybe.
              |TG-12th| tHa_KhAn

              XBL GT: Khan58

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              • #8
                Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                Oh noes! What ever will we do without more hummers? (being sarcastic)

                I hope Detroit automakers have learned their lesson. I have always been against large SUV's and trucks for those who don't need them. And no, having 1 kid and possible one more on the way does not justify a Nissan Armada or Inquisition or whatever they have these days. I've always preached driving economical cars, even when prices were low. My friends shoulda listened to me. When they whine about gas prices and how much it cost to fill up their Tahoes, I tell them "I don't even wanna hear it. That's what you get for driving something so stupid." All of a sudden, European style small cars are not looking so bad to people. I don't wanna see GM or Ford go out of business. In fact, I really want to see them succeed in the marketplace, but hopefully they'll focus more and more on mpg than ever before.
                "Common sense is not so common." -Voltaire

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                • #9
                  Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                  Originally posted by War.mongeR1 View Post
                  " All of a sudden, European style small cars are not looking so bad to people. I don't wanna see GM or Ford go out of business. In fact, I really want to see them succeed in the marketplace, but hopefully they'll focus more and more on mpg than ever before.
                  Ford, at least, is bringing the European version of the 2009 Fiesta to the U.S. It is supposed to be a great car too. I'm strongly considering a Smart Car for my next ride. My Neon finally took a dump (after 180K miles) and none of the American companies currently have a car on the market I would even consider. I hope this Fiesta turns out to be the same as the Euro model.




                  Last edited by Buckets; 06-03-2008, 06:57 PM. Reason: Added a few pictures.
                  sigpic

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                  • #10
                    Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                    SUV owners have been using TWICE as much as everyone else you can blame them for the high gas prices

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                    • #11
                      Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                      Originally posted by Hambergler View Post
                      SUV owners have been using TWICE as much as everyone else you can blame them for the high gas prices
                      Hmm. Never thought of it that way. You're right!
                      "Common sense is not so common." -Voltaire

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                      • #12
                        Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                        Thats assuming the SUV owners drive more than people with fuel efficent cars. Great example is my mom, she has an SUV and drives about 1.5 miles a day. Her work is right down the road and she does not go many other places. She needs the SUV because they get a lot of snow and its a very hilly area. So she gets I think 18 MPG on the highway and 12 in the city I believe.

                        Now I know another person that has an Altima and gets around 30mpg on the highway but they drive over 100 miles a day for work. Sure they get more bang for their buck but are using way way more resources than that SUV.

                        Not everyone is like that obviously but to make the assumption that SUV owners are using more resources than people who own cars is very narrow minded without taking into account the driving habbits that those who own and use SUV's vs those who own and use cars.

                        Currently I am in the need of a vehicle that will hold more cargo and passengers than our car. I do not want an SUV but the option is on the table if it meets our needs. However we are leaving towards a mini van since it is good enough in the SUV areas yet gets better milage and has more features.

                        Also I would like to point out that the market is getting rid of the gas guzzelers and not the govt. The free market works just as it is supposed to and this is a great example of that.
                        Battlefield Samurai 'Banzaaaiii!!!

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                        • #13
                          Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                          They've been using twice... but at twice the cost.
                          A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                          "$250,000 a year won't get me to Central Park West."

                          Comment


                          • #14
                            Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                            I just want to know why it is that I drove an American car that got over 50 mpg 15 years ago, but there isn't one on the market now...
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                            • #15
                              Re: Not Hindsight: SUV's, trucks, other gas guzzlers, bad idea then and even worse no

                              Originally posted by xTYBALTx View Post
                              Yes, trucks and SUVs are more profitable. But they're more profitable for everyone. So if Ford made $3500 on trucks and SUVs, then Toyota would have been making $3500 as well (actually, let's be realistic - Toyota was probably making more per vehicle). And yet we don't see Toyota in the same position as GM, do we?

                              GMs leadership is idiot.
                              This is true but at least for Ford up until about March the trucks were still selling fairly well. Toyota may make more profit per truck but they have a very small share in the truck market. With such a huge shift to small cars in the past few months the Detroit automakers were hit a lot harder than the Japanese companies.

                              Now I'm not saying the automakers here are blame free. They knew this would happen eventually but nobody expected the market to shift as fast as it did.

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