wth $
#2
02-15-2009, 03:56 PM
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Well, I could say:
1) high executive salaries
2) high labor cost
3) high dealer prophet
4) customer damand for luxury
But the truth is it has risen because the customer is willing to go into a dealership and be content with only knowing if they can afford the monthly payment. This attitude has led banks to issueing longer term loans to make the payment as low as they can, this led the manufacturers to raise prices and still sell cars...This is also why most people wind up, upside down on a car loan after a couple years.
A car is the worst investment you can make.
This may have been too much information but......I was bored.....
1) high executive salaries
2) high labor cost
3) high dealer prophet
4) customer damand for luxury
But the truth is it has risen because the customer is willing to go into a dealership and be content with only knowing if they can afford the monthly payment. This attitude has led banks to issueing longer term loans to make the payment as low as they can, this led the manufacturers to raise prices and still sell cars...This is also why most people wind up, upside down on a car loan after a couple years.
A car is the worst investment you can make.
This may have been too much information but......I was bored.....
#3
02-15-2009, 04:20 PM
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Because we're not in India 
and many here place style, power and status over economy.
http://www.businessweek.com/innovate...s_new_car.html
and many here place style, power and status over economy.http://www.businessweek.com/innovate...s_new_car.html
India's New $2,500 Car, The Tata Nano
The design language is in the same space as the Mercedes Smart car and the old Italian Isetta. At about 10 feet long, the Nano is 20% smaller than the cheapest car on the Indian roads right now, the Maruti Suzuki 800. The four-door, five passenger (if you’re skinny I think) car has a rear-mounted, 634 cc engine that gives 33 bhp.
Tata plans to make 250,00 initially and expects to sell 1 million annually. The Indian auto market is very hot, as growth lifts incomes and wealth in the country. Ford, Nissan, Fiat, Suzuki, Renault are all planning to increase production in the Nano space over the next couple of years. Think of 10 million additional cars on Indian roads in five years.
Tata says the Nano gets about 50 miles to the gallon and plans to bring out a diesel version.
The design language is in the same space as the Mercedes Smart car and the old Italian Isetta. At about 10 feet long, the Nano is 20% smaller than the cheapest car on the Indian roads right now, the Maruti Suzuki 800. The four-door, five passenger (if you’re skinny I think) car has a rear-mounted, 634 cc engine that gives 33 bhp.
Tata plans to make 250,00 initially and expects to sell 1 million annually. The Indian auto market is very hot, as growth lifts incomes and wealth in the country. Ford, Nissan, Fiat, Suzuki, Renault are all planning to increase production in the Nano space over the next couple of years. Think of 10 million additional cars on Indian roads in five years.
Tata says the Nano gets about 50 miles to the gallon and plans to bring out a diesel version.
#4
02-15-2009, 04:30 PM
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#5
02-15-2009, 04:42 PM
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I know many will answer with all the micro and macro management BS solutions..
BUT..the bloody truth is ...
As a greed driven society , we are still buying what we would like or want , NOT what we need !!
So the manufactures are still building to suit our stupidity , not our needs or the planet!!..
AND! ..to add to the stupidity above ....
Tooling and re tooling every year plus assembly costs, are dependent on numbers produced to a large degree.
(Make one vehicles to do the job needed for everyone and the unit cost would plummet to levels that you would possibly not believe!!)
500 different models from 20 different manufactures , all updated every 12 mths or so is not helping to keep costs down!!
While we the customers are stupid in our habits , the stupid manufactures and the industry as a whole will continue to sell at stupid prices!!
BUT..the bloody truth is ...
As a greed driven society , we are still buying what we would like or want , NOT what we need !!
So the manufactures are still building to suit our stupidity , not our needs or the planet!!..
AND! ..to add to the stupidity above ....
Tooling and re tooling every year plus assembly costs, are dependent on numbers produced to a large degree.
(Make one vehicles to do the job needed for everyone and the unit cost would plummet to levels that you would possibly not believe!!)
500 different models from 20 different manufactures , all updated every 12 mths or so is not helping to keep costs down!!
While we the customers are stupid in our habits , the stupid manufactures and the industry as a whole will continue to sell at stupid prices!!
Last edited by CBRclassic; 02-15-2009 at 04:46 PM.
#6
02-15-2009, 04:44 PM
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#7
02-15-2009, 04:51 PM
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The unions are not the problem!! ..
To pick on labor as being the sole cause of high costs is absolutely stupid...
The entire profit driven , style and personal luxury based system that we manufacture within is the main cause ...
BTW- we may not want to drive cars like those Tata Nano's , but just may be we all should for everyday commuting?
Last edited by CBRclassic; 02-15-2009 at 04:56 PM.
#8
02-15-2009, 04:54 PM
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hmm. economy 101
since i am a stupid human i have to frivolously spend my hard earned under-payed cash
on things that have nothing to do with the actual merchandise i intend to have while "joe" is up in his high-rise office, sitting behind his desk getting over-payed for twiddling his thumbs and making up the ridiculous prices i will continue to fork over my life savings towards for things that i need in order to protect other over-priced things which i want to keep safe.
Do i have this right?
since i am a stupid human i have to frivolously spend my hard earned under-payed cash
on things that have nothing to do with the actual merchandise i intend to have while "joe" is up in his high-rise office, sitting behind his desk getting over-payed for twiddling his thumbs and making up the ridiculous prices i will continue to fork over my life savings towards for things that i need in order to protect other over-priced things which i want to keep safe.
Do i have this right?
#9
02-15-2009, 04:54 PM
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So since you are in a union it makes it off limits and not the truth? I have al lot of friends that work at the Ford plants here in Louisville Ky and make insane money for driving a forklift and assmbly work when the other factories around pay $10 hr for basically same work. I don't mean to offend you and respect workers of every walk of life. Hell if I know one pays more it is silly to do it for less and would strive for the higher paying also but that does add to the final cost.
#10
02-15-2009, 05:07 PM
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hmm. economy 101
since i am a stupid human i have to frivolously spend my hard earned under-payed cash
on things that have nothing to do with the actual merchandise i intend to have while "joe" is up in his high-rise office, sitting behind his desk getting over-payed for twiddling his thumbs and making up the ridiculous prices i will continue to fork over my life savings towards for things that i need in order to protect other over-priced things which i want to keep safe.
Do i have this right?
since i am a stupid human i have to frivolously spend my hard earned under-payed cash
on things that have nothing to do with the actual merchandise i intend to have while "joe" is up in his high-rise office, sitting behind his desk getting over-payed for twiddling his thumbs and making up the ridiculous prices i will continue to fork over my life savings towards for things that i need in order to protect other over-priced things which i want to keep safe.
Do i have this right?
YOU HAVE DO A CHOICE
you can choose to save some of your money and do the environment a favor by not buying an expensive , high end luxury vehicle...
Last edited by CBRclassic; 02-15-2009 at 05:19 PM.