The Car Business: Update One

Pretty good analysis.I think that GM,and Chrysler,IF it survives,their sales will not increase as much as Ford for one other reason than those you listed. I think there will be a backlash among a good sized chunk of potential buyers against buying a vehicle from a firm that is perceived to be controlled by Obama.Especially if it comes out that politics played a role in deciding WHICH dealers were going to get the ax.And you KNOW that is the way this has come down.

What can I say? YOU nailed it. Obama is doing nothing but paying off his homeys.

before I buy a gov't motors vehicle. I don't care what kind of tax break they give as an incentive, I won't buy it.

Basically the rebate will be stolen taxpayer money returned to someone else. My favorite form of redistribution. Not.

Cantor is comparing gov't motors/0bama to Putin.

There's hope, yet. Someone may have found his cojones.

got to disagree with you about Saturn. I've owned five of them, they get over 100,000 miles easily, have great quality, and the dealerships are heads above the big three's in repair quality, service and honesty. I grew up in the 70s with rusty cars, and plastic panels worked fine for me, thank you, till they got rid of them. My Saturns were all built in Spring Hill, I'm not sure the new ones built elsewhere are as good. The Vues are from Mexico now, no thanks.

I disagree with me too.
My comments reflect the overall public perception of Saturn. I know people that are happy with their Saturn and report few problems.
Public perception is not always correct but it is the reality that must be dealt with.
My theory is that Saturn attracted a lot of first time new car buyers.
One of the traits of first time new car buyers is that they neglect the preventive maintenance. Either they have owned high maintenance vehicles and now feel free of the mechanic's world, or they are young and unaware of the importance of preventive maintenance.

Many cars that appeal to first time new car buyers, no matter how good, gain a bad reputation. One of the best cars I represented in my years in the car business was the Chevrolet Nova/Geo Prizm /Chevrolet Prizm. It was a high quality affordable car if somewhat bland. First time new car buyers affected the public perception of this car. (Ironically the twin of the Nova/Prizm, the Toyota Corolla built in the same factory, had a sterling reputation.)

Thanks for your comment.

In my sphere of acquaintance, the Saturn has been popular with divorced women. They seemed to be attracted to the no haggle pricing and the perception that service would be minor and hassle free.

That same group however, is notoriously guilty of failing to service their cars.

My wife, although not divorced, yet, is a good example. Here's how that exchange goes:

wifey: My car is making a thump, thump sound and the steering doesn't feel right.

Me: (returning from the driveway) Yeah, flat tires tend to do that!

I like my '97 Town Car. It has nearly 200,000 miles on it and is still a very nice car. Regular oil and filter changes and PM's will take a car a long way.

I don't want anything to do with a vehicle made by the government. I used to work for the Postal Service, for heaven's sake.

Besides, who wants a car that only turns left?

I wish congress didn't ignore this. Honestly, GM should have filed for chapter 11. It'd have been better than the government "loans."

Good post.