Halls of Shrewd'm / US Policy
No. of Recommendations: 3
Detroit Three CEOs, Tesla VP asked to testify at US Senate hearing
"This hearing will examine how government interference continues to make vehicles expensive and out of reach for American customers and how we can restore competition and choice," Senate Commerce Committee chair Ted Cruz said in a statement to Reuters, noting the average price of a car has more than doubled in the past decade.https://www.reuters.com/business/autos-transportat...Big gummit Commies questioning the big three's pricing decisions. Harrumph!! The automakers are entitled to discontinue their lower priced models, and jack up the price of what is left, to inflate their GP. /JC Mode The pols are doing another bit of "affordability theater". If all the safety and emissions regs were repealed, the automakers would go "woo-hoo, more money in my pocket", because inflating GP is their priority, not making their cars "affordable".
Steve
No. of Recommendations: 6
"affordability theater"
You mean like raising tariffs so that prices go up then claiming to make things more affordable by lowering tariffs.
No. of Recommendations: 0
not making their cars "affordable".
If you want more affordable cars, lower emission requirements, allow them to be manufactured in Mexico and other LA states, don't tariff them and make agreements with the states on lower taxes, etc. Then limit those who can buy to those who are in the lower rungs. ((Shudder)), you could even have a subsidy. All of that is anathema to the free market theory and reeks of "Communism!" to the MAGA.
We could call it the Biden Bug and make it ugly. Then we'd see the aesthetic inventiveness to make it sexier, and revving it up for races. Sci Fi stuff. Not likely, but stranger things have happened.
No. of Recommendations: 1
If you want more affordable cars, lower emission requirements, allow them to be manufactured in Mexico and other LA states,
As the President of the UAW pointed out, during the strike a couple years ago, automakers charge the same for Mexican built cars as they do for US built, even though Mexican autoworkers are paid a tenth what USians are paid. The automakers go "woo hoo, more profit", and stuff the money into their pockets. I looked for the article last night, but seems it went down the memory hole: some years ago, a big three exec was asked about "affordability". He said people who can't afford the cars they are building now, should buy used. Ford and VW have openly boasted they are moving "upmarket" to charge more for their cars. Automakers boast about how much extra money they take off their customers with "subscription fees". Airlines too, like Delta, have been shifting to "luxury" pricing. Margin inflation is the business model now. If the government cancelled all the emissions regs, cars would cost the same, because the cost savings would go to GP escalation.
None of the safety regs would go away tho, because the insurance industry wants them. I have been waiting for someone to propose that "smaller than average" vehicles be outlawed, as "inherently unsafe", to force people to buy bigger, more expensive, vehicles, putting more loot in the big three's pockets.
Steve
No. of Recommendations: 0
Most people don't want simple sedans like Corollas anymore. Most Americans and their families are too obese to fit into a compact sedan. Also compact sedans have less room for the junk food they buy with their SNAP and boxes of food from the food bank
No. of Recommendations: 2
Yeah, it's true that you're gonna have to regulate, but you need a catch all paragraph or two that mans you can point to that to lower the price.
In the Philippines foreigners can't own land except in certain areas. There's a catch all paragraph which means you can't contrive a way of stacking entities, etc., to get around the law and I marveled at its construction. It covered everything. But foreigners would still say you could own a home if you put the house and land into a corp that you owned. Not so. You could put the house in the corp, but putting in the land made it an illegal entity. A deed of usufruct ( similar to life estate) was enough for you to have the use of it for your life. If you put it in a corp you have to lease the land to the corp and it has to be at FMV and not nominal. Plenty of foreigners found out the hard way when the gf owns everything in the end.
No. of Recommendations: 2
Most people don't want simple sedans like Corollas anymore.Toyota, Honda, Nissan, Hyundai, and Kia still do good business in compact cars.
Here are the top 25 sellers in the US for this year:
compact sedans/hatchbacks
#23 Nissan Sentra 125,741 units sold
#12 Toyota Corolla 179,983 units sold
#11 Honda Civic 185,225 units sold
midsize sedans
#7 Toyota Camry 234,426 units sold
https://www.caranddriver.com/news/g64457986/bestse...What does Ford *want* to sell?
#16 Ford Explorer: 160,929 units sold (being outsold by the Civic, Corolla, and Camry)
In Farley's mind, he could sell a lot more Expolorers, and make a lot more profit, if people couldn't go down the street and buy small sedans from other companies. He already dropped the lower priced Ford models to try to force people into Explorers, but he knows he is losing former loyal Focus and Fusion buyers to Toyota and Honda. So, the typical "JC" response is to use the government to eliminate the competition.
Steve
No. of Recommendations: 6
"As the President of the UAW pointed out, during the strike a couple years ago, automakers charge the same for Mexican built cars as they do for US built, even though Mexican autoworkers are paid a tenth what USians are paid. "
I picked up on that way back, also. When questioned on it, the auto execs said that vehicles would be really expensive if they didn't outsource. Seems like a journalist could easily have had an itemized sticker break out of a vehicle the year before the outsourcing ( nafta ) hit, and held their feet to the fire on it, but no such luck.
But the reporters Corporate bosses probably got some ads tossed their way, or maybe a sweetheart deal on a leased vehicle.
Same with the tariffs. Trump talking inane,babbling, blathering bullshit about how the foreign Country eats it, how the American consumer won't be charged anything tariff related. I had been keeping track of a vehicle I was thinking of buying, it's up in price about 33% from November of 2024 to now. Same exact vehicle. Screw that, I'll drive mine into the ground, or at least wait for regime change in Shinyland.
No. of Recommendations: 1
Most people don't want simple sedans like Corollas anymore.
I think with current car tech that isn't a problem. Ya pick your trade offs. We don't want this, and used cars can be quite good. But you have to become a mechanic.
No. of Recommendations: 0
I'll drive mine into the ground, or at least wait for regime change in Shinyland.
We will either get a corporatist all for the "JCs" GOP regime, or an corporatist all for the "JCs" Dem regime, and nothing will substantially change, because the backers of those factions have all the money.
The bigot goobers and democratic socialists get played every time, to vote for the corporatists, who show their true stripes the day after inauguration.
Steve
No. of Recommendations: 1
I think with current car tech that isn't a problem. Ya pick your trade offs. We don't want this, and used cars can be quite good. But you have to become a mechanic. ****ripped from the headlines****
Ford recalls more than 200,000 Bronco and Bronco Sports for instrument panel failure
WASHINGTON (AP) — Ford Motor Co. is recalling more than 200,000 Bronco and Bronco Sport vehicles because an instrument panel can fail, increasing the risk of a crash.https://apnews.com/article/ford-bronco-sport-recal...Automakers have increasingly gone to electronic screens for vital functions. The debate rages whether it's because the screens are cheaper than physical displays and knobs, or for the gimmick "value". Whatever, a screen failure makes a car dangerous, or impossible, to operate, and out of warranty cost to replace the entire screen can be eye-wateringly expensive.
I have lost count of how many recalls Ford has had this year. The last count I saw, a few weeks ago, was 116, which blew through the old record, set by GM, months ago. Of course, Farley blames their crap product on his predecessors. Notice, this latest recall is for 2025-26 models. Farley has been CEO since 2020, and, every year, he has promised to improve Ford's product quality, because the company is constantly flamed for stratospheric warranty claims expense.
Steve
