Ford sells Jaguar, Land Rover to Tata
- Thread starter steve
- Start date
Lincoln and Cadillac have both essentially "given up" on true Luxury automobiles. Now they're targeting the younger people with the affordable MKZ and CTS -- in my opinion, diluting what used to be symbolic, powerful brands. Where's the Lincoln and Cadillac equivalent to the Lexus LS / MB S-Class, as an example? The Navigator and Escalade don't bring much to the table over their Expedition (which I own and love) and Suburban counterparts.
The imports unfortunately have what I believe to be the true luxury market, firmly secured. I would love to see Lincoln come out with another Mark VIII -- ie. a truly innovative, luxurious, ahead-of-its time luxury vehicle that's not attainable to a 19yr old with a loose credit union. I really don't see it happening.... both Lincoln and Cadillac have quite obviously concluded the money (for them) lies in the entry-luxury vehicles.
As for american automaker overhead... I think little more needs to be said beyond the fact there's workers making $80k/yr sweeping parking lots. Healthcare, pensions and the UAW on the whole are going to be a huge problem for them. Where is the salary coming from to pay Jimbob to sweep the parking lot on an executive's salary? It's at the cost of engineering and suppliers. Corners are undeniably cut wherever possible. Cheap plastic and aluminum, sloppy quality control in favor of increased production (have to build enough vehicles to sustain union-controlled production numbers, nevermind the fact 30% of those vehicles will sit in overflow lots for months until a huge round of near-bankrupting incentives roll out to get rid of them) and general lack of attention to detail.
It's a crying shame, really. I've been die-hard Ford and GM (yes, both!) all my life, but recently I started comparing american vs german/japanese via 24-48hr demos and the differences are light and day. It's quite unlikely that I'll buy another american luxury car unless there's significant improvements made beyond entry-level.
The imports unfortunately have what I believe to be the true luxury market, firmly secured. I would love to see Lincoln come out with another Mark VIII -- ie. a truly innovative, luxurious, ahead-of-its time luxury vehicle that's not attainable to a 19yr old with a loose credit union. I really don't see it happening.... both Lincoln and Cadillac have quite obviously concluded the money (for them) lies in the entry-luxury vehicles.
As for american automaker overhead... I think little more needs to be said beyond the fact there's workers making $80k/yr sweeping parking lots. Healthcare, pensions and the UAW on the whole are going to be a huge problem for them. Where is the salary coming from to pay Jimbob to sweep the parking lot on an executive's salary? It's at the cost of engineering and suppliers. Corners are undeniably cut wherever possible. Cheap plastic and aluminum, sloppy quality control in favor of increased production (have to build enough vehicles to sustain union-controlled production numbers, nevermind the fact 30% of those vehicles will sit in overflow lots for months until a huge round of near-bankrupting incentives roll out to get rid of them) and general lack of attention to detail.
It's a crying shame, really. I've been die-hard Ford and GM (yes, both!) all my life, but recently I started comparing american vs german/japanese via 24-48hr demos and the differences are light and day. It's quite unlikely that I'll buy another american luxury car unless there's significant improvements made beyond entry-level.
ggfrank21
Registered
Because the cost of manufacturing cars are lower in other countries and more profitable, when the US taxed the import to stay ahead in the market and be more appealing to the consumer they improved the car and added bells and whistles. This might lower the profit margin per car but whenever you go in volume they did better.
And to back up my comments about manufacturing costs look at the FOCUS or example the one made in the US and the same car yet better one made in the UK
http://www.ford.co.uk/ie/all_cars/-/-/-/-/-/-
and dont be fould the cars WILL PASS US safty and EPU
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Not questioning that it's cheaper to build cars overseas, what isn't logical to me is how an import tariff would make it easier for an importer to raise quality?
And that import tariff on imports? I don't remember that happening. There were and still are laws against dumping products into our market, ie selling below what it costs to manufacture and distribute.
ggfrank21
Registered
Lets look at it this way I’ll just call the American car the FOCUS and give you numbers not based on fact but an example. Say the Focus was around in 85 and it sold for $20k, cost to manufacture $15k, materials $7.5k, and labor $7.5k. Now the Civic for discussion sake is the exact same car but it sold for $15k, profit $5000, materials $5k, labor $5k. NOW you are the US you are afraid that imports will place Americans out of work because we can not build cars with their cost so you impose a tax $5000. So now the two identical cars cost $20,000. NOW I make the Civic and I know all things being equal Americans would rather buy American, just as if Australians would rather buy AU or Japan would Japanese cars.
So now since I know longer have the price edge what do I do to make my car more appealing? I’ll make my car faster, add a GPS, etc. It might add a little to my manufacturing cost but I’ll find a way to keep it down but my car is going to sell better. Look at Hyundai. It was a crappy car but not any more; turns a good profit. Hyundai is owned by one man, he owned the steel mill, the glass plant, everything. He has found a way to keep costs down and you get every thing the expensive cars have. This is usually done by cutting employee costs and going automated.
So now since I know longer have the price edge what do I do to make my car more appealing? I’ll make my car faster, add a GPS, etc. It might add a little to my manufacturing cost but I’ll find a way to keep it down but my car is going to sell better. Look at Hyundai. It was a crappy car but not any more; turns a good profit. Hyundai is owned by one man, he owned the steel mill, the glass plant, everything. He has found a way to keep costs down and you get every thing the expensive cars have. This is usually done by cutting employee costs and going automated.