3.5 MILLION UNSOLD VEHICLES: Automakers have a big glut

[donsu]

http://www.freep.com/money/autonews/sales14_20040714.htm

-snip-

An inventory of hundreds of thousands of unsold cars and trucks -- especially at General Motors Corp. and Ford Motor Co. -- has reached the point where the two automakers hypothetically could shut their plants the rest of the year and not sell out some of their best-known models until after the presidential election.

-snip-

Already, Ford is shutting five assembly plants next week -- including one in Wayne and two in Ontario -- on top of its normal two-week shutdown in July. GM also has its normal two-week shutdown and will idle plants in Tennessee and Georgia, but insists it can otherwise get by without a severe production cutback.
-snip-
---------------------------------


however, the economy is doing great

[Az_lefty]

1. So much for a recovering economy. n/t

[nickinSTL]

2. hmm

So much for the improving economy, eh?

[redqueen]

3. I wonder if those employees are paid during shutdowns

I would think not... what will they do? How many of them are there?

Dumbass trickle-down-kooliad-drinking-MORANS!

:nuke:

[madrchsod]

9. yes they do

at least 2/3 of their wages and sup. from car companies.health insurance is also paid-may vary from contact to contract. it`s probaly cheaper to keep running the plants at decraesed speed and cutting back on a percentage of employees than to shut the doors..

[Don_G]

18. In The US

At both our local Ford plants, the workers get about 90% of their base pay if they're laid off.

[kerryin2004]

4. It is good for Bush and his friends..

WaGES ARE DOWN AND gdp is up, someone is profiting heavily!

[Sabriel]

5. Seeing as how I CAN'T AFFORD A NEW CAR

right now, I can't say I'm too terribly surprised. Thanks, Moran-in-Chief.

[Monte Carlo]

6. Bulging inventories is a tell-tale.

It's a tell-tale that either that firms' expectations are unrealistically high or that demand is falling. It's not good news for suppliers in either case.

[timdoodle]

7. US Auto Plant go through this every year, although this year

is about .5mil more than usual. This is great for me, my car just died!

[porphyrian]

8. Nah Nah Nah Nah Naaah Naah...

Eat shit, corporate rapists.

[tabasco]

10. Maybe those giant SUVs weren't such a great idea.

Good luck Ford, etc., catching up to the Japanese on efficient autos. Once again, American car manufacturers have screwed themselves with their short-sightedness. I used to buy American to support our workers but NO MORE.

I'll NEVER buy another American car after they have foisted gas-guzzlers on us for the last several years. They have done NOTHING for this country with their policies. Japanese manufacturers have done more to help the US conserve, so I will support them from now on.

[judge_smales]

14. GM and Ford have both

scaled back thier hybrid programs.

Whattaya think will happen after the next oil shock? My guess is they'll lobby congress for import duties on Japaneese hybrids.

:rolleyes:

[tabasco]

17. As I understand it ...

Ford was leasing the hybrid technology from Toyota to build the hybrid SUV. That tells me how far behind the Americans are. These companies do not deserve our support, but they will be first in line to beg for corporate welfare.

[midnight armadillo]

21. Was it a lease or a patent swap?

Ok, a google search turned up the answer: Ford designed their own system, and apparently licensed Toyota'a patents for the Prius-type system. No doubt they would have had some patent infringement issues. Part of the same deal saw Toyota licensing some of Ford's patents on related issues.

This is pretty common in industry - no one makes any money if you're wasting your energy suing someone for patents. It's more profitable just to cross-license and compete.

[tabasco]

23. I dunno. Toyota is the one cashing in on the deal.

Thanks for the info. :hi:

[Misinformed01]

11. Every month, Michael and I get a letter from Subaru

wanting us to trade our Outback in on a new one...and by "new" they mean one from 2003 if we want.

The deals are getting better and better.

[GreenPartyVoter]

12. Too bad they aren't hybrids, they might sell as soon as folks get

jobs and some $.

[judge_smales]

13. All those cars

and I have to wait for months to get a Prius.

Oh well.

[BigBigBear]

15. I stop by my Dodge dealership every once in a while

I test drove a nice '04 Dakota, optioned pretty much the way I wanted it, back in January, when I mistakenly thought I had some downpayment $$$ to cover my current negative equity.

It's still there, 6 months later. The redesigned '05 Dak comes out in September, but if the '04 is still there in, say, October, I may go down there and abuse them on a deal for it. I'd prefer an '05, but I suspect they'll be out of reach...

[truthspeaker]

24. Yeah, but that's a German car

Chrysler is German now. Most of their cars are assembled in the US, but then so are many Volkswagons.

[Jacobin]

16. And there's a 12 month wait for a Prius

They might spend a bit more time making what people need, rather than trying to convince people what they want.

[yella_dawg]

19. Headline this morning...

don't remember where, "Economy Paused, but Rebound Continues". Hmmm...

[Jacobin]

20. Ah yes....The Daily Pravda

A "paused acceleration".

Orwell was 20 years too early, almost to the day.

[Deja Q]

22. Corporate america's early profits will lead to long term destruction

http://www.usatoday.com/news/opinion/editorials/2004-02-23-economy-edit_x.htm

Says it all...