A few things came to light that I thought others who don’t know should be informed of. So in no particular order I’ll cover some of them.
Latest sales records should give Congress a hint of what we, the American auto buying public really want. Records through November 2008 show that the Toyota Prius saw a sales drop of 32% from the previous year. The truck of the year for several years, the Ford F-150 saw a drop of 18.5%, and the popular Chevy Siverado saw a sales drop of 22% for the year.
Two main factors are the cause of this; the deep price slashing by the domestic automakers, and lower gas prices. If one shops around, you can buy a crew-cab pickup $5,000 cheaper than a Honda Accord!
Toyota sold just 8,660 Priuses in November while Ford sold 37,911 F-150s during the same month. So Barney Frank, Congress may have lost confidence in the American consumer, but the American consumer has not lost confidencein American iron.
One of the largest problems for the Big 3 has been government regulations and interventions.The automakers don’t know what will sell from month to month, but Congress wants to tell them what to build. Individual states are also passing higher emission standards than the Federal standards to further confuze the Big 3. In a little twist of irony, Toyota executives are jumping ship for employment with the Big 3.
Another hiccup that lawmakers, and some of us didn’t foresee, is that the Big 3, and Toyota, are about six months away from a heavy cut back in NASCAR programs. Can all other forms of racing be far behind? I’m sure NASCAR will survive, it may just have a differnet look.
Now there are people a whole lot smarter than me saying that only about 12% of the new stimulus package might even remotely help the economy. The other 88%? Pork. Even the tax credits don’t mean much when they take away the tax cuts we had when they expire.
I’ve said it all along, America doesn’t need more government, it needs
Comments are welcome.