[UncleJoe]

This little fact comes right from the mouth of the current GM CEO, Dan Akerson addressing reporters in Shanghai, China in Feb. 2011.

This is GM's way of saying thank you to the taxpayer supported bailout of GM.

YouTube

YouTube

[OldCootHillbilly]

Fine, they like China so much, pull outa the US completly. There gettin so overpriced that joe average can't afford one a there vehicles anywho.

Oh, an on the way out, leave a check ta cover what we spent on em.

[mosquitomountainman]

Yep! Buy American!

[UncleJoe]

Originally Posted by OldCootHillbilly

There gettin so overpriced that joe average can't afford one a there vehicles anywho.

It's not just GM.

I bought a Dodge Ram2500 diesel in '98 for $17,000 and I thought that was a little steep back then. It has heavy duty everything. I couldn't touch it now for under $40,000. And people ask me why I don't get rid of that "old thing."

I refuse to spend that kind of money on a truck. I'll keep it repaired until it rusts out from under me.

[OldCootHillbilly]

Oh, I agree. Workin man can't buy a new vehicle from any a them car compainies. Pricin themselves right outa business.

I've long said ifin them folk had a brain, they'd make a 4 door car with the basics on it what sold new fer $10,000 an they couldn't make enough of em. Sendin yer kid ta school? You'd spend that money over buy a $7,000 dollar used car just knowin yer daughter weren't gonna call an say she was broke down in the middle a nowhere. How many people would buy one fer the wife ta gota work in knowin she was gonna get there on time cause it starts?

But no, we build these fancy things with tv's, navigation systems, leather seats, self parkin, yadda yadda yadda. I know this be what people think they need but in reality they don't. Learn ta read a map. Learn ta park the thing!

Thin what chaps my butt be the fact we bailed em out an they pay us back by movin more an more ta a communist country. I hope they get just what they deserve an don't come cryin ta us ta bail em out again. Fool me once shame on you, fool me twice shame on me!

Ok, I'm gonna quit, blood pressure be risein an I gotta gota work.

[partdeux]

ok, for disclosure, I work at an OEM (not GM), doing vehicle product development for many years. Currently working in a component product development.

What you are seeing is the direct result of global inflation, and out of control union wages, combined with a system of govt regulations that are indecipherable. I watched a funny demo to make a point on how many things just one system engineer had to sign off on to certify a vehicle for sale. It was actually a pile of 5 reams of paper. Multiply that times hundreds of systems and engineers.

All these new features that customers demand, govt requires, and competition drive, all add significant costs to the vehicle. Combine that with the collapsing middle class, and you are setting a scenario for potential implosion.

OEM's have chased lowest cost parts to their final destination, China. There is no place cheaper to get parts of any quality. China's pricing is always just enough below US producers prices to get mfg to move mfg to China. Is it the OEM's fault, absolutely not, because people still buy on price. OEM's responsibility is to their shareholders, nobody else. But, what is now beginning to happen, with so little US mfg capability left, China is rapidly beginning to raise their prices. I'm looking at a major cast iron casting that we wanted to move from China back to the US. We can not find a US producer capable of producing the part. China knows that and is demanding a huge price increase, or they will stop producing the part. Now what? If the part production gets stopped, then the highly popular vehicle line gets stopped. there are no other options.

It's a difficult conundrum without any easy answers. On another line, the OEM is bringing the part back in house, and even tho the union is getting some new work, the rules and other issues are increasing costs far above expected levels.

[efbjr]

The recent cash for clunkers program that the Feds sponsored took a lot of affordable used cars off the market. With the economy in the toilet and people out of work (especially here in RI where we have the second highest unemployment rate, just behind Michigan(?)) finding a beater car that is roadworthy and just needed for basic transportation, and at a low price, is near impossible. The demand for used auto parts that are needed to keep what people have on the road, instead of just going out and buying a new vehicle, has given rise to increased thefts of older vehicles that are then sold for parts.

I recently spoke to the manager of a garage that sold used tires, (maybe not the best way to go, but what are you supposed to do when $$$ is tight ?), and he told me that he sold a trailer truck load worth of used tires every other day, 3 loads per week!

Cash for clunkers may have seemed like a good idea at the time, but in retrospect, it is obvious that it was started only to benefit the car manufacturers by forcing people to purchase new vehicles instead of buying used. Couple that with the economy in the toilet and you put people in a cruel economic vise that is tough to deal with!

[mdprepper]

Originally Posted by efbjr

The recent cash for clunkers program that the Feds sponsored took a lot of affordable used cars off the market.

<snip>

Cash for clunkers may have seemed like a good idea at the time, but in retrospect, it is obvious that it was started only to benefit the car manufacturers by forcing people to purchase new vehicles instead of buying used. Couple that with the economy in the toilet and you put people in a cruel economic vise that is tough to deal with!

Before I found my Jeep, I was looking for an older Ford truck. I had the worst time trying to find much out there. The used vehicle dealers I spoke with all said the same thing. Cash for clunkers hurt their business and left us without as many options.

[mosquitomountainman]

Originally Posted by partdeux

... What you are seeing is the direct result of global inflation, and out of control union wages, combined with a system of govt regulations that are indecipherable. I watched a funny demo to make a point on how many things just one system engineer had to sign off on to certify a vehicle for sale. It was actually a pile of 5 reams of paper. Multiply that times hundreds of systems and engineers. ...

See, I knew Wal-Mart was the cause of all of our financial woes!!!!!
(Incidentally - The previous statement was meant to be sarcastic towards those who blame all of our financial problems on Wal-Mart!)

[partdeux]

Walmart is actually a symptom, of our personal "greed" and of our business "greed". Personal, because we will almost always shop on price alonne, and corporate, which manifests itself back to personal, because we want our 401k, IRA's, etc to grow in value and that requires corporte profits. WE are our own worst enemy. Combined with this mistaken belief, that WE had to help lift the boat, globally, when it drained our own bathtub and is lowering our wages to match those in less developed countries