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kane · 03-30-2009, 04:22 AM

I think the car companies can again be profitable. They are victim of the down economy and their own success. They succeeded in convincing much of the public that they needed to go out and buy some big ass SUV that will never so much as see a dirt road much less offroad. And it worked. People went out in droves and bought them. For several years it seemed like there was a competition to see who could own the biggest SUV on the block. The car companies loved it because the profit margin on those beasts is huge.

The problem was these cars cost so much people were up to their eyes in dept trying pay for them. Then gas hit $5 a gallon and people really had trouble affording them. Follow that with the economic problems and now people are wondering what to do. People need cars. People want to buy new cars. Those that own the SUVs will trade them in, but right now people are starting to trend back towards the more affordable gas saving cars and the domestic automakers were/are lacking behind some of the foreign companies when it comes to that type of car.

I think if they can put together a line of cars that are of high quality and that people want to buy they can become profitable again. It isn't just the domestics that are hurting right now, most of the major car companies around the world are seeing their sales in a nose dive so part of fixing the auto industry problem is simply fixing the economy. People are not willing to go out and take on a $300, $400 or more a month car payment right now not knowing if they will have a job in 6 months. If the economy improves buyers will return and if the domestic companies can put together some appealing cars they can attract those buyers.

03-30-2009, 04:22 AM
kane Too lazy to set a custom title Join Date: Aug 2001 Location: portland, OR Posts: 20,684	I think the car companies can again be profitable. They are victim of the down economy and their own success. They succeeded in convincing much of the public that they needed to go out and buy some big ass SUV that will never so much as see a dirt road much less offroad. And it worked. People went out in droves and bought them. For several years it seemed like there was a competition to see who could own the biggest SUV on the block. The car companies loved it because the profit margin on those beasts is huge. The problem was these cars cost so much people were up to their eyes in dept trying pay for them. Then gas hit $5 a gallon and people really had trouble affording them. Follow that with the economic problems and now people are wondering what to do. People need cars. People want to buy new cars. Those that own the SUVs will trade them in, but right now people are starting to trend back towards the more affordable gas saving cars and the domestic automakers were/are lacking behind some of the foreign companies when it comes to that type of car. I think if they can put together a line of cars that are of high quality and that people want to buy they can become profitable again. It isn't just the domestics that are hurting right now, most of the major car companies around the world are seeing their sales in a nose dive so part of fixing the auto industry problem is simply fixing the economy. People are not willing to go out and take on a $300, $400 or more a month car payment right now not knowing if they will have a job in 6 months. If the economy improves buyers will return and if the domestic companies can put together some appealing cars they can attract those buyers.