Hi JQP - The much faster design cycle is impressive. I had heard that Chrysler had put a design center in the middle of a pilot plant, so new parts and proceedures could be tested immediately.
That's really good news.
I am very aware that I live in rich subset, but Detroit (and the Europeans) make a way disproportionet profits from that subset.
One Cadillac Escalade will have more profit than X number of Chevy Luminas.
My SWAG is if we excluded all Cadillacs, Chevy Covettes, and truck frame SUVs (Chevy Suburban / GMC Yukon), everything else would just break even.
Even though that would include light and heavy pickup trucks, the Buick LeSaber /Park Avenue.
If the US Dollar goes a little lower, maybe domestic makers can keep prices up a little bit and make money on their mainstream cars.
Otherwise, the Federal Government will need to find a way to pick up some of the pension and health care burden on the automakers, especially if the government raises mileage standards.
Right now, Wall Street sees the Big 3 as boxed into a trap - high pensions, a US Dollar that is still too strong, lingering affects of a reputation of poor reliability, and aggresive, well funded competition, especially from Japan and now Korea.
I think the the Big will get out of this box.
>But there is a push to have very accelerated fuel economy standards, deliberately pushing smaller, lighter "ECO-friendly" vehicles.
Meaning Detroit would be pushed to build what the Sierra CLub wants, instead of waht people want to buy. |
