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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: profile_14 who wrote (33311)	7/3/2004 5:37:10 PM
From: quehubo	Read Replies (1) \| Respond to of 206100

Well my knowledge of the topic at hand is limited to an article or two that indicated more labor and more margin in a $45K SUV than a $22K econo car. What one do you think the union bosses and the other auto industry stakeholders would prefer to sell?

To: profile_14 who wrote (33311)	7/3/2004 5:46:48 PM
From: Bearcatbob	Read Replies (2) \| Respond to of 206100

Good stuff on the manufacture of cars. The key irony of my car/election analogy is that the dems are against the big cars and therefore will hurt the Detroit auto worker. I cannot believe that point will not be made in the campaign. Frankly, I think it will a dance for kerry. Now let us look at the economics of SUVs. Lets say you own one for 50,000 miles and you average 20% less gas mileage than your alternate car - I assume SUV drivers are not going next to hypbrids. Next assume over 50,000 miles the driver gets 20 mpg. That mean a total of 2,500 gallons of gas will be used. At $2.00 per gallon that would be $5,000 of gas. If in the current environment a buyer save $2,000 in the purchase price of an SUV - the buyer is way ahead. On that basis the current environment is a great opportunity to buy an SUV.