It's a program that has proved very successful on paper, so much so they have even extended the program by an additional $2 billion.  However, such a program can't last forever, which got me asking a few questions.

First question, will future buyers be waiting around for government assistance before they buy their next vehicle?  That is to say, once this incentive ends will the sales dry up until the next government intervention or will dealerships be capable of staying afloat on their own?  I'm on the mind that sales will again tank, more dealerships will close, and consumers will hold on to their money again until the next incentive.

Similar consumer buying habits changed back in the mid 90's when 0% financing was first introduced.  It created a flux of buyers looking to capitalize.  However, once dealerships tried to end the special promotion the sales ended as well.  Just to keep the status quo, dealerships have had to continue that special promotion to some extent to maintain sales.  Are we going down this road again?

Original automotive content: Automotive Blog

Cash For Clunkers Future

So Ford posts a $2.3 billion dollar profit today for the 2nd quarter of 2009 and already the official industry experts are chiming in.  I already have  a view point on why Ford managed to get in the black for the second quarter and it has nothing to do with vehicle offerings.  That's right, I don't think hybrids and fuel economy had anything to do with the recent numbers published by Ford.

In my opinion Ford manged to turn $2.3 billion in profit because they received the support of the American consumer.  The regular Joe blows saw that this corporation was not taking a hand out and decided to show their support through their wallets.  The American consumer, when faced with countless options on car lots, decided to choose a Ford vehicle over GM, Chrysler, or Toyota.  It's a sign that the majority of Americans don't support the bail out plans in Washington.

Another driving force in sales will be whether or not the vehicle you buy now will be supported 5 or more years from now.  If you have a major component go out on your car after the warranty has expired, will parts be radically expensive, or supported by the manufacturer.  Vehicles that are discontinued generally see higher replacement parts in generic and OEM form, why put yourself in that kind of a position.

I thoroughly realize that $2.3 billion in profits is a far cry from where a company this size needs to be, especially to keep the stock holders happy.  However, in this economic environment every ray of sunshine helps to swallow the negative news around every corner.  It's a move in the right direction and I hope Ford can prove themselves again next quarter and the American people continue to voice their opinions with their wallets.

Original automotive content: Automotive Blog

Ford Posts $2.3 Billion Profit

To put this in perspective, only about 25% of all Ferrari cars are sold in the US.  In 2007 they sold only 1,700 cars, which they matched in 2008.  But, in Eastern Europe Ferrari increased sales from 2007 to 2008 by more than 20%.  Furthermore they increased sales figures in the Middle East, South Africa, and Japan.

According to Ferrari they relied on agrressive cost cutting measures and benefited from a greater offering of vehicles than previous years.  The future looks great for Ferrari, with plans to produce facilities that will allow the manufacturer to produce their own energy.  However, like other businesses, the CEO of Ferrari warns of the uncertainty of 2009 and does not intend to remain still.

Ferrari

Original automotive content: Automotive Blog

What Recession, says Ferrari

At the Detroit auto show Lamborghini showed off their Matte Blue finish LP640. They were making a statement that those lucky enough to purchase a Lambo, were offered cosmetic options at the time of ordering. Custom colors are offered for everything from Brake Calipers to the type of leather used inside. Those with a big enough wallet can live by Lamborghini's moto, "Think The Impossible".

Original automotive content: Automotive Blog

Lamborghini Sales Up For 2008

An article by Motor Trend highlights the sales of the Top 10 Best Selling vehicles of 2008.  What's most interesting is that all the vehicles in the top 10 list are showing sales drops ranging from 5% to 31%, except for one vehicle.  The Honda Civic is the only vehicle showing an increase in sales at a marginal +2.1%.  This tells me not enough people were scared enough to buy perceived better fuel efficient vehicles.  Furthermore, the quality and value of buying a Ford pickup truck holds true even in tough economic times.

I've said this before, but when Armageddon hits and the US goes back to the stone age, people won't be traveling via hybrids.  It's gonna take a 4x4, at least a full size pick up truck, to get the jobs done.  I mean, when was the last time you tried moving a mattress with a hybrid?

Ford F Series

Original automotive content: Automotive Blog

F Series Reign Not Affected By Gas Prices

The New York times is reporting on a interesting story about how cars from Toyota and other car companies are having to moth ball their cars. Each day thousands of cars are being made in plants all over the world. Then they are loaded onto a ship and sent overseas to America and other countries. Well the thing is people are just not buying the cars. When the cars get over here they are not being taken to sellers but the car companies are renting acres of space that is usually used to temporary store containers to store their cars on. Toyota alone has cleared a deal for 6 acres worth of land to store cars on for an unknown amount of time! They even want more land! This has been going on for 2 years now but is getting worse.

Toyota has slowed production down to meet demand but what will they do with all those cars if people are not buying them? Whats really bad is we could have a surplus of 2007-2008 models with no miles on them for years to come. They will only go down in value so its not good for car companies. Cars are being stored at airports and fairgrounds also I read. Its amazing what just a slowdown of the economy can do to some businesses.

Dealerships are actually denying truck loads of cars because they just can't sell them fast enough. General motors is going to go bankrupt soon they are saying also. Toyota is hurting just as bad though as GM as their car and SUV sales are way down. You may have noticed Toyota's "Saved by Zero" commercials. Its a sign they are hurting badly,desperate to get rid of a car. If you NEED a new car this is the best time to find one but I suggest you buy a used one. People are almost giving them away.

Take a look at the picture on the New York times article about the cars being stored. Its just amazing to see just how many cars are sitting their with no place to go!
http://www.nytimes.com/2008/11/19/bu...orts.html?_r=1

Original automotive content: Automotive Blog

Automotive Industry Storing Unwanted Cars

Sales of the Honda Accord were up 19.7% and the little Civic up 17.2%. The increase almost blanketed the different vehicles offered by Honda, including their small pick up trucks. However, sales with their SUV lineup has suffered slightly, with the Honda Element and Honda Pilot. I'm sure they are hoping that their 2009 Honda Pilot will help turn those sales figures around.

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Original automotive content: Automotive Blog

Small Car Sales Up