Jump to content
Drew Dowdell

Industry News: GM, Ford Brace For Economic Downturn; German Economy Shrinks

Recommended Posts

Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst.  They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets.  General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up.

GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a a strong downturn.  Ford says is is evaluating its future moves. 

Fears of a recession have plagued Wall St. most of 2019 while a trade war with China rages on.  Higher costs of materials due to tariffs is adding to the pain of weak product demand in the U.S., China, and Europe.  In Germany, Europe's biggest economy, growth shrank by 0.1 percent in Q2 2019 as trade conflicts and auto industry troubles weighed heavily on the economy.  Both exports and lagging demand at home have put a strain on German automakers already looking to slash costs. 

Today, a strong signal that a recession is looming appeared as the 10-year treasury yield dropped below the 2-year treasury yield while do Dow Jones Industrial Average sank over 450 points.  

Related:
Honda Slowing Production, Cutting Shifts
Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent
Ford Europe Laying Off Another 12,000
Daimler Books First Quarterly Loss in Ten Years


View full article

Share this post


Link to post
Share on other sites

The slow down is coming.  If China wants to get in an all out trade war and flood the market with some of the US treasury bonds they owe that can really throw gas on the fire.

  • Upvote 3

Share this post


Link to post
Share on other sites

Economic downturn?  I like to look at real estate sites.  There are already residential properties (not the mansions Robin Leach would tour) in California, Washington state, et. al. that are showing "reduced" in their prices.  We've only seen this recently.  We certainly haven't seen this in a long time.  I would agree that there is a downturn coming.

Share this post


Link to post
Share on other sites

Apparently Singapore officially entered recession yesterday. Germany technically did also, but at such a low rate, they're not calling it yet. 

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites
51 minutes ago, ccap41 said:

I think the mass amount of firearms in the US will not allow an official "cast system". 

Are you sure about that? About half of all firearms are owned by about 4% of all Americans.  Most gun owners only have at most two or three firearms, often just one.

Share this post


Link to post
Share on other sites
9 minutes ago, riviera74 said:

Are you sure about that? About half of all firearms are owned by about 4% of all Americans.  Most gun owners only have at most two or three firearms, often just one.

Well, if you think about the cast that would be put at the bottom of the system.. yes.

You don't need an arsenal of firearms to defend yourself or family. You also don't need 100% pushback to defend your "cast". 

Share this post


Link to post
Share on other sites
27 minutes ago, riviera74 said:

 Most gun owners only have at most two or three firearms, often just one.

My idiot brother had 45...

  • Haha 1

Share this post


Link to post
Share on other sites
27 minutes ago, riviera74 said:

Are you sure about that? About half of all firearms are owned by about 4% of all Americans.  Most gun owners only have at most two or three firearms, often just one.

Those numbers don't seem right. Theres an estimated 400 million guns in the US. 4% of US population is 14,000,000, obviously a lot less once you eliminate minors.

  • Upvote 1

Share this post


Link to post
Share on other sites
2 minutes ago, Robert Hall said:

My idiot brother had 45...

I assume he was a collector with those numbers. 

Share this post


Link to post
Share on other sites
Just now, ccap41 said:

I assume he was a collector with those numbers. 

No, just an idiot.  They were seized when he was arrested last year, but he may get them back after probation ends next year..but that's neither here nor there. 

Anyway, the automakers shift to CUVs and SUVs seems short sighted if a downturn is coming...smaller, cheaper cars seem more likely to sell in a down market...

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites
2 minutes ago, Robert Hall said:

Anyway, the automakers shift to CUVs and SUVs seems short sighted if a downturn is coming...smaller, cheaper cars seem more likely to sell in a down market...

There's also the glut of used cars on the market at the moment. 

GM could bring the Cruze back in an instant. It's still in production in South America.  Just load them on a boat and ship them north. Sonic and Spark are still in production for now.  Sonic is not officially on the death list yet and its plant is not listed in the list of 5 plants that GM is closing

  • Upvote 3

Share this post


Link to post
Share on other sites
Posted (edited)

There are still bunch of cheaper smaller cars and CUVs from Asian automakers.

A lot of used post lease vehicles, but I think they still on a more pricey side because people tend to lease more expensive vehicles.

Edited by ykX

Share this post


Link to post
Share on other sites
30 minutes ago, Robert Hall said:

My idiot brother had 45...

I know several people with several hundred, and a few people with over a thousand. 

 

  • Like 1
  • Confused 2

Share this post


Link to post
Share on other sites
2 hours ago, Drew Dowdell said:

Sonic and Spark are still in production for now. 

Did sales of that price tier really jump during the ‘08-09 recession? Cause the Trax MSRP’s starts @ $21K before deals/incentives.

  • Upvote 1

Share this post


Link to post
Share on other sites
3 hours ago, riviera74 said:

Are you sure about that? About half of all firearms are owned by about 4% of all Americans.  Most gun owners only have at most two or three firearms, often just one.

Just the Facts please and according to the following:

http://concealednation.org/2016/01/how-many-guns-does-your-state-have-a-look-at-the-numbers-plus-comparisons-to-other-countries/

This info is from the recognized statista.com web site.

https://www.statista.com/statistics/215655/number-of-registered-weapons-in-the-us-by-state/

image.png

As of 2018 it would seem 43% of US households have at least one gun. Of those that do have a gun, most have multiple.

https://www.statista.com/statistics/249740/percentage-of-households-in-the-united-states-owning-a-firearm/

This in comparison to the number of auto's:

https://www.statista.com/statistics/196010/total-number-of-registered-automobiles-in-the-us-by-state/

image.png

According to the statistics, we have 375 million guns or equal to 113 guns per 100 people.

According to the statistics, we have 272.48 million auto's registered to people in the us or .85 of an auto per person.

Guns are winning ownership. :( 

Share this post


Link to post
Share on other sites

Enough of the gun talk. I'll delete further posts of it.

1 hour ago, balthazar said:

Did sales of that price tier really jump during the ‘08-09 recession? Cause the Trax MSRP’s starts @ $21K before deals/incentives.

Spike is a relative term because the entire industry was in a massive contraction at the time. Smaller cars did well relative to bigger ones yes, but part of that was cash for clunkers.

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites

I would think most consumers in the Spark/Sonic shopping tier would largely go to the pre-owned market in a hard downturn (not artificially effected by a ‘CfC’ program), not to mention CUVs are much closer in price to low-end cars than they were 10 years ago. I don’t expect the same dynamic of radical oil speculation to happen again, oil was down today with the news of an unexpected rise in supply.

I think GM & Ford are safe in a future economic storm without small cheap cars.

  • Like 1

Share this post


Link to post
Share on other sites
15 hours ago, balthazar said:

I would think most consumers in the Spark/Sonic shopping tier would largely go to the pre-owned market in a hard downturn (not artificially effected by a ‘CfC’ program), not to mention CUVs are much closer in price to low-end cars than they were 10 years ago. I don’t expect the same dynamic of radical oil speculation to happen again, oil was down today with the news of an unexpected rise in supply.

I think GM & Ford are safe in a future economic storm without small cheap cars.

Keep in mind that Nissan, Kia, Hyundai, are ahead of GM and Ford in the small cheap crossover area. 

Nissan Kicks, Hyundai Venue, Kia Seltos and Soul,  all start under $20k.  Trax is over $20k and Ecosport sits right at $20k.

Share this post


Link to post
Share on other sites

^ same price tier. If you’re making a purchase primarily on saving a grand, again I would think most would go pre-owned.

  • Upvote 2

Share this post


Link to post
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By Drew Dowdell
      Leaks of privileged information happen.  In this case, Ford pushed these images and pages to their consumer website in a way which was easy for the folks at MachEForum to find. 
      Here are the basics, the best of each spec, the 2021 Ford Mach-E will have up to 300 miles of driving range, run 0-60 in mid-three second range, and have optional all-wheel drive.  You're going to prioritize those specs though because you won't be able to get them all in the same car.
      All models of Mach-E will be able to recharge 47 miles in 10 minute of DC fast charging in a 150-kw charger
      The base model is called Select and starts at $43,895. It is powered by a 255 horsepower, 306 lb.-ft of torque motor in the rear.  You can opt for all-wheel drive which increases torque to 429lb.ft. This model gets an EPA estimated range of 230 miles and a 0 to 60 sprint of mid 5-seconds. If you qualify for the full $7,500 federal tax credit, the price can be as low as $36,395. It's equipped with 18-inch wheels
      Next up is the Premium trim, starting at $50,600. This comes with 19-inch wheels and again in RWD or AWD configurations. EPA estimated range is 300 miles on the RWD model and 0 to 6- remains mid 5-seconds. 
      There will be a trim called California Route 1 which is an extended range rear-wheel drive model. It has an EPA range of 300 miles and a mid 6-second range sitting on 18-inch wheels.
      Then there is the top of the line GT, starting at $60,500. EPA range is estimated at 235 miles and a mid 3-second range. It comes standard with all-wheel drive. 
      For early adopters, there is a Mach-E First Edition. It offers three exterior colors, including and exclusive "Grabber Blue Metallic", interior contrast stitching, First Edition scuff plates, brushed aluminum pedals, and red brake calipers. This model seems to be a happy medium on range and performance with a 270 mile EPA estimated range, mid 5-second 0-60, AWD, and 19-inch wheels. 
      Inside the Mach-E is a large Telsa-like center screen though with a single physical dial at the bottom. A simple dash and slim gauge cluster sit behind a 3-spoke wheel badged with the Mustang logo. 
      Ford will officially share more information on Sunday night, and the specs listed above are subject to change. We'll keep you updated as more information comes out. In the meantime, scroll down to see all of the information grabbed in the screenshots.








       

      View full article
    • By Drew Dowdell
      Leaks of privileged information happen.  In this case, Ford pushed these images and pages to their consumer website in a way which was easy for the folks at MachEForum to find. 
      Here are the basics, the best of each spec, the 2021 Ford Mach-E will have up to 300 miles of driving range, run 0-60 in mid-three second range, and have optional all-wheel drive.  You're going to prioritize those specs though because you won't be able to get them all in the same car.
      All models of Mach-E will be able to recharge 47 miles in 10 minute of DC fast charging in a 150-kw charger
      The base model is called Select and starts at $43,895. It is powered by a 255 horsepower, 306 lb.-ft of torque motor in the rear.  You can opt for all-wheel drive which increases torque to 429lb.ft. This model gets an EPA estimated range of 230 miles and a 0 to 60 sprint of mid 5-seconds. If you qualify for the full $7,500 federal tax credit, the price can be as low as $36,395. It's equipped with 18-inch wheels
      Next up is the Premium trim, starting at $50,600. This comes with 19-inch wheels and again in RWD or AWD configurations. EPA estimated range is 300 miles on the RWD model and 0 to 6- remains mid 5-seconds. 
      There will be a trim called California Route 1 which is an extended range rear-wheel drive model. It has an EPA range of 300 miles and a mid 6-second range sitting on 18-inch wheels.
      Then there is the top of the line GT, starting at $60,500. EPA range is estimated at 235 miles and a mid 3-second range. It comes standard with all-wheel drive. 
      For early adopters, there is a Mach-E First Edition. It offers three exterior colors, including and exclusive "Grabber Blue Metallic", interior contrast stitching, First Edition scuff plates, brushed aluminum pedals, and red brake calipers. This model seems to be a happy medium on range and performance with a 270 mile EPA estimated range, mid 5-second 0-60, AWD, and 19-inch wheels. 
      Inside the Mach-E is a large Telsa-like center screen though with a single physical dial at the bottom. A simple dash and slim gauge cluster sit behind a 3-spoke wheel badged with the Mustang logo. 
      Ford will officially share more information on Sunday night, and the specs listed above are subject to change. We'll keep you updated as more information comes out. In the meantime, scroll down to see all of the information grabbed in the screenshots.








       
    • By Drew Dowdell
      Ford has announced the name of their upcoming Mustang inspired electric crossover.  It will be called the Mustang Mach E.  The official debut happens on November 17th, after which reservations for the car will be opened for customers wishing to make a deposit.  Deposits are $500 to hold your place in line and later, customization of the vehicle will open closer to delivery time. 
      We've seen from previews of the Mustang Mach E that it will be a rather swoopy crossover with a coupe like roofline. Current rumors put the estimated range at around 370 miles on the WTLP cycle, but EPA cycle will likely be lower. Ford also recently announced the creation of the FordPass Charging network, a way to take the worry out of range anxiety.  We expect we'll hear even more about FordPass Charging Network at the November 17th presentation. 
       


      View full article
    • By Drew Dowdell
      Ford has announced the name of their upcoming Mustang inspired electric crossover.  It will be called the Mustang Mach E.  The official debut happens on November 17th, after which reservations for the car will be opened for customers wishing to make a deposit.  Deposits are $500 to hold your place in line and later, customization of the vehicle will open closer to delivery time. 
      We've seen from previews of the Mustang Mach E that it will be a rather swoopy crossover with a coupe like roofline. Current rumors put the estimated range at around 370 miles on the WTLP cycle, but EPA cycle will likely be lower. Ford also recently announced the creation of the FordPass Charging network, a way to take the worry out of range anxiety.  We expect we'll hear even more about FordPass Charging Network at the November 17th presentation. 
       

    • By Drew Dowdell
      GM's Lordstown facility has been sold to startup Lordstown Motors.  Lordstown Motors will produce the Workhorse Endurance pickup truck, an all-electric truck, at the site. 
      The Endurance has all-wheel drive via 4 motors, one for each wheel.  It also has outlets to allow for the use of power tools. Workhorse is also in the bidding to make plug-in mail trucks for the U.S. Postal Service.  Workhorse has 6,000 orders for a truck based on the W-15 Prototype, and those orders would be moved to Lordstown for production. Workhorse is targeting fleet buyers. With fewer moving parts and lower fuel costs, it could translate to lower cost-to-own for fleet operators. 
      Lordstown Motors still needs to go through several more rounds of fund raising in order to continue development, conduct safety testing, and retool the plant for production. 

      View full article
  • Recent Status Updates

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...