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I read an article a few weeks ago about how hyundai's success was tied to their ability to finance cars - specifically, how by financing a car it could be an extremely profitable enterprise. Example - a new hyundai's cost of manufacture was (not real numbers) say 3000. they sell the car for 5995. Even if 50% of the buyers defaulted (more like 16%) they still make a profit (this also informs on what a paper profit or loss is).... now GM wants to get back into the game by doing much the same thing..... http://detnews.com/article/20100517/...333/1148/rss25 ... only, of course, they can't because they're bound by the same rules as the major lenders who created the problem (subprime housing).... and by GM financing I mean Chrysler as well because Ally is their lender too.
All of that is old news, what crossed my mind this morning was Ford has been touting that they're selling cars because they build better cars - however, I wonder how much of those increased sales are to people with damaged credit and who have no choice in what they buy?
Really, it's enough to make one not believe anyone again - GM cooked their "repayment" numbers, now Ford is not telling the entire truth.... add to this the other major manufacturer - Toyota - is embroiled in a scandal.... I'm not a conspirist; but this all seems just too perfect.
mental detour over - ;)
All of that is old news, what crossed my mind this morning was Ford has been touting that they're selling cars because they build better cars - however, I wonder how much of those increased sales are to people with damaged credit and who have no choice in what they buy?
Really, it's enough to make one not believe anyone again - GM cooked their "repayment" numbers, now Ford is not telling the entire truth.... add to this the other major manufacturer - Toyota - is embroiled in a scandal.... I'm not a conspirist; but this all seems just too perfect.
mental detour over - ;)
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