May 17, 2010

GM & Chrysler aiming for huge profits

CARS - Chrysler and General Motors are already predicting huge profits due to the market rebound in automotive sales which are up 16.7% in the last 4 months.

That should do well for General Motors which still owes another $40 billion to the American and Canadian governments for its buyout one year ago this week.

There are a variety of reasons for the sudden profitability of the two companies.
#1. More credit available to car buyers.

#2. More focus on catering to younger buyers with SAT Nav and DVD players for family cars.

#3. Scrapping of brands that don't sell as much. ie. Pontiac, Saturn, Saab and Hummer are all gone.

#4. No more marketing to golf fans and the older generation. Few Americans play golf anyway.

#5. No more building excess capacity of cars that aren't selling fast enough, resulting in those cars later being sold at a loss.

#6. Scrapping car models that are too slow at selling.

#7. More focus on small cars in order to compete with small cheap imports.

#8. More focus on gasoline efficiency, considering the recent shift in the market towards greener cars and the worry about gas prices.
But Chrysler and General Motors aren't out of the woods yet. This summer a whole slew of new cheap cars imported from China and India are coming to North America. If you think Japanese and Korean cars are cheap... Pfff! You haven't seen anything yet.

No comments:

Post a Comment

Comments containing links will be marked as spam and not approved. We moderate every comment. If you want to advertise on this blog it is $30 per link.

Affordable Website Design & SEO

Looking for a quality professional website designer? Why not go where the smart money is?! Toronto Website Design and Toronto SEO. Get free SEO advice from people who really know the business.

Featured Posts

The Sarcasm Symbol
Ever had some confusion online or with your cellphone when someone fails to catch the sarcasm? Well now with the SarcMark you can ge...
Behold, the Scorpion Hydrogen Supercar
CARS - To the right is the future of supercars... it is a hydrogen supercar called the Scorpion. The Scorpion from Ronn Motors in Texas is t...
Documents show Stephen Harper misusing public funds
CANADA - According to 950+ pages of documents obtained by the Canadian Press under the Access to Information Act the Privy Coun...
Pink's Rosie the Riveter
ENTERTAINMENT - What I like about this video is how it meshes different social movements like feminism, veganism, anti-capitalism...
California's Dustbowl
ENVIRONMENT - The photo on the right is a farm in California that has been put up for sale. Its just one of thousands of farms that are n...
Is Steampunk the New Goth???
GOTHIC - Watch out what you see on the subway late at night because while in 2001 you might have seen some pretty freakish goths, by 20...
Do you have enough Ice Water in your diet?
HEALTH - A Calorie (large C) is a measurement of the amount of energy needed to raise the temperature of a litre of water (1 kg's worth) ...
North Korean timeline towards Inevitable War
POLITICS - The following is timeline of events that have occurred on the Korean Peninsula. 1945 - Japan surrenders to the United States a...
Judgment Day is Tomorrow, so sayeth Cult
RELIGION - According to a cult based in California, Judgement Day is tomorrow (May 21st 2011) and Jesus Christ will return to the Earth a...
Sex in Space Forbidden
SEX/TECHNOLOGY - Sex in outer space is a big no-no according to NASA. Not for professional astronauts at least, but the growing numb...

Popular Posts