Reply #76: This is one area in which the US consumer bears much blame [View All]

[lastliberalintexas]

for the choices they make. The Ford exec is probably right, there will still be a fairly significant group of people who will continue to view vehicles as status symbols and who will refuse to buy what they need, rather than what they think impresses others.

First of all, let me say that Ford and GM have done a great deal to put their American divisions in the red, so that the possibility of bankruptcy protection maybe keeps the unions in line. FORD AND GM ARE NOT- I REPEAT, NOT- LOSING MONEY. Those corporations have reported profits every quarter when you consider the entire corp, rather than just the American subsidiary. They are following the plan created by the airlines, in which they file for bankruptcy if things get too bad, and in the process get a judge to let them weasel out of pension/retirement and healthcare obligations. The corporations are to blame for quite a bit, so please don't take the rest of this post as a defense of them.

At the same time, however, the US consumer has continued to make some of the most assinine decisions that could be made, particularly when it comes to their purchase of vehicles. Some of my family members are in the car business, and I've also spoken with people in the business in other parts of the country who tell me the same things my family does. They can't get people to buy things like the Focus or what was the Contour, even though they are very good cars. 25 year old kids are no different than middle aged men trying to prove they're still sexy or middle aged women wanting to keep up with the Joneses- they all tend to think that you are what you drive. They will cut back on other things, I guess, if it means keeping up appearances. :shrug:

I am a professional who makes quite a bit of money (my husband and I are fortunate to pay in federal income taxes what many people try to live on in a year), and I drive a Ford Taurus. Absolutely wonderful vehicle, well over a 100K miles now and still gets 27-28 mpg most of the time (if I drive like we all should!). And best of all, it's paid for! And yet, people are always telling me that they are surprised that "someone like me" would drive one, that they would expect me to be in a BMW or Lexus. I always ask them if they really think that I am that stupid, and I get many blank stares in response. Personally, I think it's extremely stupid to spend that kind of money on a car to either try to impress others or meet others' expectations- esp when I got my slightly used little thing for $12K.

That kind of thinking is rampant in US auto sales, though. Until the US consumer stops trying to use vehicles to compensate for a lack of self worth, then this Ford exec is right. They'll always have sucke- er, i mean buyers for the overpriced things that people don't need.