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	<title>Comments on: Domestic Car Sales and The Riddle of the Sphinx</title>
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	<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/</link>
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		<title>By: billc83</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-861881</link>
		<dc:creator>billc83</dc:creator>
		<pubDate>Sat, 18 Oct 2008 02:23:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-861881</guid>
		<description>&lt;em&gt;&quot;It’s not an intelligent way to decipher whether a given vehicle is truly good or not&quot;&lt;/em&gt;

Unfortunately, most people are stupid and close-minded.  If someone gets burned by a particular make or model, it is very possible for them to take the ensuing resentment to their grave.  And that will include telling anyone who will listen to their tale of woe in an effort to sway them to their opinion.

Most people are also self-absorbed.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><em>&#8220;It’s not an intelligent way to decipher whether a given vehicle is truly good or not&#8221;</em></p>
<p>Unfortunately, most people are stupid and close-minded.  If someone gets burned by a particular make or model, it is very possible for them to take the ensuing resentment to their grave.  And that will include telling anyone who will listen to their tale of woe in an effort to sway them to their opinion.</p>
<p>Most people are also self-absorbed.<!-- google_ad_section_end --></p>
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		<title>By: newcarscostalot</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-860711</link>
		<dc:creator>newcarscostalot</dc:creator>
		<pubDate>Fri, 17 Oct 2008 21:07:43 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-860711</guid>
		<description>Cant argue with that!</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Cant argue with that!<!-- google_ad_section_end --></p>
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		<title>By: Steven Lang</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-858231</link>
		<dc:creator>Steven Lang</dc:creator>
		<pubDate>Fri, 17 Oct 2008 03:27:14 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-858231</guid>
		<description>I really despise these generalizations of, &quot;that car GOOD, this car BAD&quot; which are based on nothing more than a personal account of a product that was sold in the hundreds of thousands. 

It&#039;s not an intelligent way to decipher whether a given vehicle is truly good or not.

If a person really wants to figure out if a given vehicle has what it takes, they should read the feedback from hundreds of people who have actually owned and driven it. There are countless sites on the web which provide this service, and visiting everything from &#039;review sites&#039; to &#039;enthusiast sites&#039; should give you a far better understanding of a given vehicle.

The real results may surprise you far more than the fan boy cheerleading or the hate spawning drivel that passes for an intelligent opinion.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->I really despise these generalizations of, &#8220;that car GOOD, this car BAD&#8221; which are based on nothing more than a personal account of a product that was sold in the hundreds of thousands. </p>
<p>It&#8217;s not an intelligent way to decipher whether a given vehicle is truly good or not.</p>
<p>If a person really wants to figure out if a given vehicle has what it takes, they should read the feedback from hundreds of people who have actually owned and driven it. There are countless sites on the web which provide this service, and visiting everything from &#8216;review sites&#8217; to &#8216;enthusiast sites&#8217; should give you a far better understanding of a given vehicle.</p>
<p>The real results may surprise you far more than the fan boy cheerleading or the hate spawning drivel that passes for an intelligent opinion.<!-- google_ad_section_end --></p>
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		<title>By: newcarscostalot</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-857931</link>
		<dc:creator>newcarscostalot</dc:creator>
		<pubDate>Fri, 17 Oct 2008 01:26:30 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-857931</guid>
		<description>My friend has a 97 beat to hell dodge intrepid which I used to own with 200k miles and the engine and transmission are still sound. They are original as well. My other friend has a 94 Astro van with over  260k miles that still runs ok, there is a lifter tap and I think it uses a tiny amount of oil, but its still going. I don&#039;t know if the Astro mechanicals are original though. The paint and interior has held up pretty well on both vehicles. Its surprising to me too!</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->My friend has a 97 beat to hell dodge intrepid which I used to own with 200k miles and the engine and transmission are still sound. They are original as well. My other friend has a 94 Astro van with over  260k miles that still runs ok, there is a lifter tap and I think it uses a tiny amount of oil, but its still going. I don&#8217;t know if the Astro mechanicals are original though. The paint and interior has held up pretty well on both vehicles. Its surprising to me too!<!-- google_ad_section_end --></p>
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		<title>By: billc83</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-853611</link>
		<dc:creator>billc83</dc:creator>
		<pubDate>Wed, 15 Oct 2008 23:02:54 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-853611</guid>
		<description>Ken_DFA - You are not alone.  Many, many before you have sworn off domestics altogether after being burned by their domestic products.  This has been going on since the 70s, and is one of the reasons many jumped to Honda/Toyota.

I&#039;m a GM man, myself.  I&#039;m no loyality though; my runaround is a Mazda3.  Cadillac is my favorite car brand (for what reason, I really don&#039;t know - I&#039;ve liked them since I was a kid!) and I&#039;m young enough to not remember the horrible 70s (though my dad has told horror stories - a Ford man, ironically) AND am lucky enough to have not been burned by a GM product.  That probably puts me in a minority!

The recipe for failure goes something like this: start with some truly horrible products, add in indifferent/nasty service experiences, and the owner will become disgruntled with your company.  He may forgive your faults once, or even twice, but eventually he WILL head for greener pastures!</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Ken_DFA &#8211; You are not alone.  Many, many before you have sworn off domestics altogether after being burned by their domestic products.  This has been going on since the 70s, and is one of the reasons many jumped to Honda/Toyota.</p>
<p>I&#8217;m a GM man, myself.  I&#8217;m no loyality though; my runaround is a Mazda3.  Cadillac is my favorite car brand (for what reason, I really don&#8217;t know &#8211; I&#8217;ve liked them since I was a kid!) and I&#8217;m young enough to not remember the horrible 70s (though my dad has told horror stories &#8211; a Ford man, ironically) AND am lucky enough to have not been burned by a GM product.  That probably puts me in a minority!</p>
<p>The recipe for failure goes something like this: start with some truly horrible products, add in indifferent/nasty service experiences, and the owner will become disgruntled with your company.  He may forgive your faults once, or even twice, but eventually he WILL head for greener pastures!<!-- google_ad_section_end --></p>
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		<title>By: davey49</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-852601</link>
		<dc:creator>davey49</dc:creator>
		<pubDate>Wed, 15 Oct 2008 20:20:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-852601</guid>
		<description>x</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->x<!-- google_ad_section_end --></p>
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		<title>By: Ken_DFA</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-851091</link>
		<dc:creator>Ken_DFA</dc:creator>
		<pubDate>Wed, 15 Oct 2008 15:07:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-851091</guid>
		<description>Long post - I apologize.

I&#039;m 26, come from a GM family.  My old man used to build hydra-matics, my uncle and grandfather both were GM workers from age 18 until retirement.  I grew up driving GM hand-me downs from family.  Despite my lineage as a GM kid, the company is effectively dead to me.

In my short driving life (8 years), I have been stranded no fewer than 6 times along the side of the road due to mechanical failures in my vehicles.  Every time this has happened, I have been behind the wheel of a GM vehicle.  Just yesterday, my girlfriend calls me when I&#039;m out of town on business, saying that her Saturn won&#039;t start and that she has to walk 40 minutes to work.  

I will be buying my first &quot;real&quot; new car in the next couple months.  I will not even consider buying a GM vehicle due to strong memories about blowing fuel pumps on I-196 (twice), transmission failure on I-69 in a February snowstorm, complete engine failure on the Ohio Turnpike.  These were all well-maintained vehicles with under 100k on the odometer.  Totally serious - I keep the local towing company on my cell phone&#039;s speed dial.  I&#039;ve been conditioned to expect my vehicles to fail at any time for any reason.

The last of the GM loyalists are those of my parents&#039; generation.  Myself and my friends have been stranded far too many times to risk spending our hard earned dollars for inferior products.  Despite the fact that GM is responsible for a portion of my extended family&#039;s employment, I simply cannot afford to throw money in the toilet on another GM vehicle. 

-Ken</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Long post &#8211; I apologize.</p>
<p>I&#8217;m 26, come from a GM family.  My old man used to build hydra-matics, my uncle and grandfather both were GM workers from age 18 until retirement.  I grew up driving GM hand-me downs from family.  Despite my lineage as a GM kid, the company is effectively dead to me.</p>
<p>In my short driving life (8 years), I have been stranded no fewer than 6 times along the side of the road due to mechanical failures in my vehicles.  Every time this has happened, I have been behind the wheel of a GM vehicle.  Just yesterday, my girlfriend calls me when I&#8217;m out of town on business, saying that her Saturn won&#8217;t start and that she has to walk 40 minutes to work.  </p>
<p>I will be buying my first &#8220;real&#8221; new car in the next couple months.  I will not even consider buying a GM vehicle due to strong memories about blowing fuel pumps on I-196 (twice), transmission failure on I-69 in a February snowstorm, complete engine failure on the Ohio Turnpike.  These were all well-maintained vehicles with under 100k on the odometer.  Totally serious &#8211; I keep the local towing company on my cell phone&#8217;s speed dial.  I&#8217;ve been conditioned to expect my vehicles to fail at any time for any reason.</p>
<p>The last of the GM loyalists are those of my parents&#8217; generation.  Myself and my friends have been stranded far too many times to risk spending our hard earned dollars for inferior products.  Despite the fact that GM is responsible for a portion of my extended family&#8217;s employment, I simply cannot afford to throw money in the toilet on another GM vehicle. </p>
<p>-Ken<!-- google_ad_section_end --></p>
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		<title>By: joeaverage</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-851051</link>
		<dc:creator>joeaverage</dc:creator>
		<pubDate>Wed, 15 Oct 2008 14:59:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-851051</guid>
		<description>How about reintroducing the Neon - same exact car and call it the Neon City or something. 

Very little cost to get back into the game. 

VW sells older designs around the world. Int he South Africa you can buy the VW Rabbit from the 80s. In South America you can buy the VW from the 70s. Both vehicles have had some updates but nothing too expensive. 

Of course the magazine writers would blast them for releasing an old product but if Chrysler was up front about what they were doing - selling a car whose design was long ago paid for, with better quality (improve the materials a little - better hardware so the doors last longer, the tranny lasts longer, the engine lasts longer), and maybe even a cost reduction. 

AOn another note - an advantage to buying a used car is that they have a track record which allows you to see where it&#039;s weaknesses are. Visit the enthusiast forums where you can see what people talk about breaking on their cars most often. 

Lastly I&#039;ve done the European compact car thing now for several years. It has been cheap with the aid of the internet. The dealer prices are stratospheric but I can get aftermarket parts and OEM parts in some cases cheap. Even with it&#039;s &quot;issues&quot; (relative to my Honda) it&#039;s only costing me a few hundred a year in repairs with my labor. I can usually wait until several things pile up and then do them all at once. This time will be a clutch cable, power steering pump, a/c clutch bearing, power steering hose, and some little plastic things that have worn like seat slider bushings. I should be done until middle of next year. 

One problem I see with some domestic cars is that they are mostly sold here - not like a world product Civic that sells well everywhere. The parts seem to be available for many more years than say a blower motor for a North America market only vehicle. There isn&#039;t likely anyone outside of the USA making parts for NA Cavaliers but the whole world is making parts for the VW Golf family of vehicles.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->How about reintroducing the Neon &#8211; same exact car and call it the Neon City or something. </p>
<p>Very little cost to get back into the game. </p>
<p>VW sells older designs around the world. Int he South Africa you can buy the VW Rabbit from the 80s. In South America you can buy the VW from the 70s. Both vehicles have had some updates but nothing too expensive. </p>
<p>Of course the magazine writers would blast them for releasing an old product but if Chrysler was up front about what they were doing &#8211; selling a car whose design was long ago paid for, with better quality (improve the materials a little &#8211; better hardware so the doors last longer, the tranny lasts longer, the engine lasts longer), and maybe even a cost reduction. </p>
<p>AOn another note &#8211; an advantage to buying a used car is that they have a track record which allows you to see where it&#8217;s weaknesses are. Visit the enthusiast forums where you can see what people talk about breaking on their cars most often. </p>
<p>Lastly I&#8217;ve done the European compact car thing now for several years. It has been cheap with the aid of the internet. The dealer prices are stratospheric but I can get aftermarket parts and OEM parts in some cases cheap. Even with it&#8217;s &#8220;issues&#8221; (relative to my Honda) it&#8217;s only costing me a few hundred a year in repairs with my labor. I can usually wait until several things pile up and then do them all at once. This time will be a clutch cable, power steering pump, a/c clutch bearing, power steering hose, and some little plastic things that have worn like seat slider bushings. I should be done until middle of next year. </p>
<p>One problem I see with some domestic cars is that they are mostly sold here &#8211; not like a world product Civic that sells well everywhere. The parts seem to be available for many more years than say a blower motor for a North America market only vehicle. There isn&#8217;t likely anyone outside of the USA making parts for NA Cavaliers but the whole world is making parts for the VW Golf family of vehicles.<!-- google_ad_section_end --></p>
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		<title>By: threeer</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-850911</link>
		<dc:creator>threeer</dc:creator>
		<pubDate>Wed, 15 Oct 2008 14:16:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-850911</guid>
		<description>Hence why we wound up with a 2006 Fusion SE, 5 spd/ 4cyl for well under $12k back over the summer.  Was it &quot;the&quot; car I wanted?  Not even close.  But I wanted a car for the wife and kid that was less than three years old that wasn&#039;t a shoebox on wheels.  For the money, I&#039;d never have found a used Honda or Toyota for that.  Are there compromises with the Ford?  Um, yeah.  I grant that the interior isn&#039;t nearly as quality-oriented as the Toyonda variants, but with the steering mounted radio controls and the sunroof, I&#039;ll get over it for the next few years.  Deprication CAN work in one&#039;s favor if one is willing to bypass being bit by the newcar-itis bug and look at three to five year old used vehicles.

BTW, how many &quot;quotes&quot; can one use in one article?  :)</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Hence why we wound up with a 2006 Fusion SE, 5 spd/ 4cyl for well under $12k back over the summer.  Was it &#8220;the&#8221; car I wanted?  Not even close.  But I wanted a car for the wife and kid that was less than three years old that wasn&#8217;t a shoebox on wheels.  For the money, I&#8217;d never have found a used Honda or Toyota for that.  Are there compromises with the Ford?  Um, yeah.  I grant that the interior isn&#8217;t nearly as quality-oriented as the Toyonda variants, but with the steering mounted radio controls and the sunroof, I&#8217;ll get over it for the next few years.  Deprication CAN work in one&#8217;s favor if one is willing to bypass being bit by the newcar-itis bug and look at three to five year old used vehicles.</p>
<p>BTW, how many &#8220;quotes&#8221; can one use in one article?  :)<!-- google_ad_section_end --></p>
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		<title>By: toxicroach</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-850781</link>
		<dc:creator>toxicroach</dc:creator>
		<pubDate>Wed, 15 Oct 2008 13:53:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-850781</guid>
		<description>You&#039;re operating under a different set of assumptions than me, but even $550 matters.  And it&#039;s not just wages.  From what I read, compliance with union rules costs about $650 a car.  $350 to pay other workers NOT to work. Etc.

http://money.cnn.com/2007/01/26/news/companies/pluggedin_taylor_ford.fortune/index.htm

That seems to back my numbers fairly well.

Also, if they were making such a good profit on the neon... why&#039;d they kill it and replace it with the Caliber?  You don&#039;t see Honda killing the Civic.  Just classic Big 3 stupidity?</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->You&#8217;re operating under a different set of assumptions than me, but even $550 matters.  And it&#8217;s not just wages.  From what I read, compliance with union rules costs about $650 a car.  $350 to pay other workers NOT to work. Etc.</p>
<p><a href="http://money.cnn.com/2007/01/26/news/companies/pluggedin_taylor_ford.fortune/index.htm" rel="nofollow">http://money.cnn.com/2007/01/26/news/companies/pluggedin_taylor_ford.fortune/index.htm</a></p>
<p>That seems to back my numbers fairly well.</p>
<p>Also, if they were making such a good profit on the neon&#8230; why&#8217;d they kill it and replace it with the Caliber?  You don&#8217;t see Honda killing the Civic.  Just classic Big 3 stupidity?<!-- google_ad_section_end --></p>
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		<title>By: speedlaw</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-850691</link>
		<dc:creator>speedlaw</dc:creator>
		<pubDate>Wed, 15 Oct 2008 13:00:35 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-850691</guid>
		<description>The great unfairness is that if you can pony up the bucks for a BMW-MB, most of the time the car is worth something a few years down the road.

I once figured that an E class was a better deal over ten years than two Fords, adding depreciation to the mix.

Every time (not too many) my BMW needs a part, I justify the cost with the idea that it is designed for a 200 k + service life.  So far, that has been the truth.

I went through a few detroit cars....they last 75k.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->The great unfairness is that if you can pony up the bucks for a BMW-MB, most of the time the car is worth something a few years down the road.</p>
<p>I once figured that an E class was a better deal over ten years than two Fords, adding depreciation to the mix.</p>
<p>Every time (not too many) my BMW needs a part, I justify the cost with the idea that it is designed for a 200 k + service life.  So far, that has been the truth.</p>
<p>I went through a few detroit cars&#8230;.they last 75k.<!-- google_ad_section_end --></p>
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		<title>By: pleiter</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-850091</link>
		<dc:creator>pleiter</dc:creator>
		<pubDate>Wed, 15 Oct 2008 01:27:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-850091</guid>
		<description>Question that splits the hair on the subject: Non-Toyota/Honda/Subaru Japanese processed cars. Meaning Mazda, Nissan, Mitsubishi, perhaps real-Suzuki&#039;s. At top-level, they seem to avoid the fleet effect, but do not seem to be as stubborn as the top-three in terms of depreciation. The trouble is, insufficient data count makes several marques of these not reported in CR, also Suzuki seems to burn through nameplates quickly. Are these more like the top three or more like Detroit ? Is there gradation within the group ? How besides CR is anyone to get real data on reliability ?</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Question that splits the hair on the subject: Non-Toyota/Honda/Subaru Japanese processed cars. Meaning Mazda, Nissan, Mitsubishi, perhaps real-Suzuki&#8217;s. At top-level, they seem to avoid the fleet effect, but do not seem to be as stubborn as the top-three in terms of depreciation. The trouble is, insufficient data count makes several marques of these not reported in CR, also Suzuki seems to burn through nameplates quickly. Are these more like the top three or more like Detroit ? Is there gradation within the group ? How besides CR is anyone to get real data on reliability ?<!-- google_ad_section_end --></p>
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		<title>By: KixStart</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-850021</link>
		<dc:creator>KixStart</dc:creator>
		<pubDate>Wed, 15 Oct 2008 01:10:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-850021</guid>
		<description>toxicroach, I&#039;d like to revisit that calculation of labor cost.

I am &lt;em&gt;quite&lt;/em&gt; sure I have read that GM puts the least labor into its vehicles... something like 20 hours per car.  Their hourly costs are higher but surely not twice the competition.  I&#039;d expect the labor cost comparison is more along the lines of:

GM - 20 hrs * $100/hr  = $2000
Toyonda - 22 hrs * $66/hr = $1452

Or, GM is disadvantaged by a mere $550 or so.  Considering that, per a TTAC article from last year or so, 40% of Americans &lt;em&gt;still&lt;/em&gt; won&#039;t &lt;em&gt;consider&lt;/em&gt; an Asian car, this isn&#039;t a crippling cost difference.  With a solid 40% of the market unwilling to consider an Asian car, Detroit should be able to charge slightly more per car.  Of course, 25% of buyers now won&#039;t consider an American car but that&#039;s a more recent development (I expect 15 years ago, this tilt was 80/10 in favor of Detroit).

I don&#039;t see labor cost as the big problem.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->toxicroach, I&#8217;d like to revisit that calculation of labor cost.</p>
<p>I am <em>quite</em> sure I have read that GM puts the least labor into its vehicles&#8230; something like 20 hours per car.  Their hourly costs are higher but surely not twice the competition.  I&#8217;d expect the labor cost comparison is more along the lines of:</p>
<p>GM &#8211; 20 hrs * $100/hr  = $2000<br />
Toyonda &#8211; 22 hrs * $66/hr = $1452</p>
<p>Or, GM is disadvantaged by a mere $550 or so.  Considering that, per a TTAC article from last year or so, 40% of Americans <em>still</em> won&#8217;t <em>consider</em> an Asian car, this isn&#8217;t a crippling cost difference.  With a solid 40% of the market unwilling to consider an Asian car, Detroit should be able to charge slightly more per car.  Of course, 25% of buyers now won&#8217;t consider an American car but that&#8217;s a more recent development (I expect 15 years ago, this tilt was 80/10 in favor of Detroit).</p>
<p>I don&#8217;t see labor cost as the big problem.<!-- google_ad_section_end --></p>
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		<title>By: argentla</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849951</link>
		<dc:creator>argentla</dc:creator>
		<pubDate>Wed, 15 Oct 2008 00:50:29 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849951</guid>
		<description>Chrysler reportedly made over $1,000 a car on the Neon, even after accounting for higher warranty costs resulting from Eaton&#039;s ill-advised cost cutting. I&#039;m leaning toward the &quot;GM is culturally incapable of making small cars&quot; theory.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Chrysler reportedly made over $1,000 a car on the Neon, even after accounting for higher warranty costs resulting from Eaton&#8217;s ill-advised cost cutting. I&#8217;m leaning toward the &#8220;GM is culturally incapable of making small cars&#8221; theory.<!-- google_ad_section_end --></p>
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		<title>By: changsta</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849551</link>
		<dc:creator>changsta</dc:creator>
		<pubDate>Tue, 14 Oct 2008 21:40:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849551</guid>
		<description>My first car was a used 1994 Chevy Cavalier. It was an ex-rental. I was 16 at the time and very excited to have a car. It was very cheap to buy, and I foolishly assumed that it would be reliable, since I saw so many of them on the road. That POS nearly killed me many times. The most basic elements of the car simply refused to function when you needed them. My favorite was the windshield wipers that refused to work anytime it rained. Or the blower motor for the heat that would just quit anytime the temperature dropped below zero degrees Celsius, promptly causing all the windows to fog/freeze up. I often wondered who at GM had decided to not even bother putting in a cassette deck for the stereo, but yet equip a 2-door car with power locks. 

I simply do not care how much GM improves its quality/products! They did not care about the consumers that bought their death traps in the past, so why should I care that they are now on the verge of bankruptcy? GM could start churning out the best vehicles on the planet, but I would never, ever give them a penny of mine. Automakers really should put an effort into their entry level vehicles, because young buyers really are impressionable and they have years of car buying ahead of them.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->My first car was a used 1994 Chevy Cavalier. It was an ex-rental. I was 16 at the time and very excited to have a car. It was very cheap to buy, and I foolishly assumed that it would be reliable, since I saw so many of them on the road. That POS nearly killed me many times. The most basic elements of the car simply refused to function when you needed them. My favorite was the windshield wipers that refused to work anytime it rained. Or the blower motor for the heat that would just quit anytime the temperature dropped below zero degrees Celsius, promptly causing all the windows to fog/freeze up. I often wondered who at GM had decided to not even bother putting in a cassette deck for the stereo, but yet equip a 2-door car with power locks. </p>
<p>I simply do not care how much GM improves its quality/products! They did not care about the consumers that bought their death traps in the past, so why should I care that they are now on the verge of bankruptcy? GM could start churning out the best vehicles on the planet, but I would never, ever give them a penny of mine. Automakers really should put an effort into their entry level vehicles, because young buyers really are impressionable and they have years of car buying ahead of them.<!-- google_ad_section_end --></p>
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		<title>By: toxicroach</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849501</link>
		<dc:creator>toxicroach</dc:creator>
		<pubDate>Tue, 14 Oct 2008 21:18:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849501</guid>
		<description>I don&#039;t want to knock the cultural aspect of it, but in low margin cars GM&#039;s extra labor cost really bites them in the ass.

Say the margin on a small car is $500.  I think that is generous. 


Say Honda just gave GM the right to build the Fit as the Chevy Flab.  Honda sells the base Fit for 16000.  $500 margin, the Fit costs 15500 to make.

GM builds the Flab at its Oshawa plant.  With its added labor costs (around $2500 per car), the Flab costs $18000 to make.  Tack on that $500 profit, and the Flab is running @ 18500 (for that kind of cash you could move up a segment over at Honda).  

GM can&#039;t compete by building good cars in the small market.  It has to build crappy penalty boxes because that is the only way they can compete on price.  Which feeds into their cultural hatred of small cars; if you knew you had to build a crappy car for that segment, you&#039;d hate building them too.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->I don&#8217;t want to knock the cultural aspect of it, but in low margin cars GM&#8217;s extra labor cost really bites them in the ass.</p>
<p>Say the margin on a small car is $500.  I think that is generous. </p>
<p>Say Honda just gave GM the right to build the Fit as the Chevy Flab.  Honda sells the base Fit for 16000.  $500 margin, the Fit costs 15500 to make.</p>
<p>GM builds the Flab at its Oshawa plant.  With its added labor costs (around $2500 per car), the Flab costs $18000 to make.  Tack on that $500 profit, and the Flab is running @ 18500 (for that kind of cash you could move up a segment over at Honda).  </p>
<p>GM can&#8217;t compete by building good cars in the small market.  It has to build crappy penalty boxes because that is the only way they can compete on price.  Which feeds into their cultural hatred of small cars; if you knew you had to build a crappy car for that segment, you&#8217;d hate building them too.<!-- google_ad_section_end --></p>
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		<title>By: Landcrusher</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849421</link>
		<dc:creator>Landcrusher</dc:creator>
		<pubDate>Tue, 14 Oct 2008 20:39:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849421</guid>
		<description>no_slush,

If you are going to the dealer, then you are, as I said, over paying everytime. Besides that, most of the dealers own both a foriegn and domestic. I don&#039;t expect that they are any different, but I could be wrong. I only go to a dealer to get parts.

OTOH, the fix it yourself european car thing really can work. I had a coworker who was a Jag fan. He drove old jags for next to nothing, and enjoyed tinkering with them on weekends. It&#039;s one way to make a fancy car affordable.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->no_slush,</p>
<p>If you are going to the dealer, then you are, as I said, over paying everytime. Besides that, most of the dealers own both a foriegn and domestic. I don&#8217;t expect that they are any different, but I could be wrong. I only go to a dealer to get parts.</p>
<p>OTOH, the fix it yourself european car thing really can work. I had a coworker who was a Jag fan. He drove old jags for next to nothing, and enjoyed tinkering with them on weekends. It&#8217;s one way to make a fancy car affordable.<!-- google_ad_section_end --></p>
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		<title>By: psarhjinian</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849301</link>
		<dc:creator>psarhjinian</dc:creator>
		<pubDate>Tue, 14 Oct 2008 19:57:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849301</guid>
		<description>&lt;em&gt;netrun: By putting crap vehicles into the hands of the next generation, GM is cementing their place in history.&lt;/em&gt;

Exactly.  GM et al have historically failed their new buyers by concentrating their development efforts on high-margin vehicles at the expense of their low-margin stuff.

Nothing, but nothing, will chase away a buyer more than owning a product that feels like it&#039;s maker put it together out of spite, which is exactly how an Aveo feels next to a Fit, Versa or even Yaris.  They&#039;re not bad cars, but compared to the CTS, Corvette or GMT900 trucks, let alone the Malibu, you can tell GM just doesn&#039;t want to make them.

Interestingly, this is why GM turned to Daewoo in the first place: GM wasn&#039;t culturally capable of making a decent small car, where Daewoo was entirely geared for bang-for-the-buck.  If you cast back your mind to 2003, the Aveo really wasn&#039;t that bad next to the Echo, Accent and Rio and was certainly better, in holistic terms, than the Cavalier of the time.  But GM, being GM, didn&#039;t improve the Aveo at all, and it&#039;s getting creamed by the Fit, Yaris and Versa.

I don&#039;t hold out a lot of hope for the Cruze.  Despite the press-release puff photos of the interior, it&#039;s yet another car made to a low-margin price point by a company that hates low-margin products.  Cultural shifts are not something this company does well.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><em>netrun: By putting crap vehicles into the hands of the next generation, GM is cementing their place in history.</em></p>
<p>Exactly.  GM et al have historically failed their new buyers by concentrating their development efforts on high-margin vehicles at the expense of their low-margin stuff.</p>
<p>Nothing, but nothing, will chase away a buyer more than owning a product that feels like it&#8217;s maker put it together out of spite, which is exactly how an Aveo feels next to a Fit, Versa or even Yaris.  They&#8217;re not bad cars, but compared to the CTS, Corvette or GMT900 trucks, let alone the Malibu, you can tell GM just doesn&#8217;t want to make them.</p>
<p>Interestingly, this is why GM turned to Daewoo in the first place: GM wasn&#8217;t culturally capable of making a decent small car, where Daewoo was entirely geared for bang-for-the-buck.  If you cast back your mind to 2003, the Aveo really wasn&#8217;t that bad next to the Echo, Accent and Rio and was certainly better, in holistic terms, than the Cavalier of the time.  But GM, being GM, didn&#8217;t improve the Aveo at all, and it&#8217;s getting creamed by the Fit, Yaris and Versa.</p>
<p>I don&#8217;t hold out a lot of hope for the Cruze.  Despite the press-release puff photos of the interior, it&#8217;s yet another car made to a low-margin price point by a company that hates low-margin products.  Cultural shifts are not something this company does well.<!-- google_ad_section_end --></p>
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		<title>By: Rix</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-849291</link>
		<dc:creator>Rix</dc:creator>
		<pubDate>Tue, 14 Oct 2008 19:56:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-849291</guid>
		<description>In about a year or two, the new Cadillac CTS should be coming off lease and will provide an interesting opportunity for a used car. However, as far as used cars go, a slightly used Buick is the best value...they tend to be driven by old folks who maintain them well so are low mileage and in great shape not to mention dirt cheap.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->In about a year or two, the new Cadillac CTS should be coming off lease and will provide an interesting opportunity for a used car. However, as far as used cars go, a slightly used Buick is the best value&#8230;they tend to be driven by old folks who maintain them well so are low mileage and in great shape not to mention dirt cheap.<!-- google_ad_section_end --></p>
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		<title>By: highrpm</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-848971</link>
		<dc:creator>highrpm</dc:creator>
		<pubDate>Tue, 14 Oct 2008 18:48:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-848971</guid>
		<description>I just worked on a Saturn that was shifting hard.  It was a higher mileage vehicle.  The fix is to replace the auto trans valve body, a $240 part.  It took less than 2 hours to replace, since a lot of repairs are easy to perform on these cars.  Anyway, dealers charge $900-1800 for this repair.  For me, sucking up a $240 repair once every 150,000 miles is okay.  Sucking up an $1800 repair on an old beater is not okay.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->I just worked on a Saturn that was shifting hard.  It was a higher mileage vehicle.  The fix is to replace the auto trans valve body, a $240 part.  It took less than 2 hours to replace, since a lot of repairs are easy to perform on these cars.  Anyway, dealers charge $900-1800 for this repair.  For me, sucking up a $240 repair once every 150,000 miles is okay.  Sucking up an $1800 repair on an old beater is not okay.<!-- google_ad_section_end --></p>
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		<title>By: no_slushbox</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-848441</link>
		<dc:creator>no_slushbox</dc:creator>
		<pubDate>Tue, 14 Oct 2008 16:57:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-848441</guid>
		<description>Repair prices are a non issue between Japanese and American cars, in my experience.  If anything the Japanese dealers are more honest one’s car is much less likely to have a suspicious “new” problem after being worked on at a Japanese dealership.

Parts for both American and Japanese cars are dirt cheap, and the Japanese design their mainstream American cars to be worked on by &quot;bubba&quot; at the independent service station.

European parts are slightly more, but in this age of efficient logistics and eBay they can be had very cheaply.  The bigger problem is having the repairs done.  Repairs on old European cars are not intuitive to &quot;bubba&quot; and require special knowledge.  This means expensive, specialized service on everything from alignments on up.

If one is willing to put a two post lift in their garage and spend time hunting for special tools on eBay then an old European car can work.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->Repair prices are a non issue between Japanese and American cars, in my experience.  If anything the Japanese dealers are more honest one’s car is much less likely to have a suspicious “new” problem after being worked on at a Japanese dealership.</p>
<p>Parts for both American and Japanese cars are dirt cheap, and the Japanese design their mainstream American cars to be worked on by &#8220;bubba&#8221; at the independent service station.</p>
<p>European parts are slightly more, but in this age of efficient logistics and eBay they can be had very cheaply.  The bigger problem is having the repairs done.  Repairs on old European cars are not intuitive to &#8220;bubba&#8221; and require special knowledge.  This means expensive, specialized service on everything from alignments on up.</p>
<p>If one is willing to put a two post lift in their garage and spend time hunting for special tools on eBay then an old European car can work.<!-- google_ad_section_end --></p>
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		<title>By: netrun</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-848421</link>
		<dc:creator>netrun</dc:creator>
		<pubDate>Tue, 14 Oct 2008 16:53:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-848421</guid>
		<description>The math on GM&#039;s &quot;next generation buyer&quot; is actually much, much simpler.

Simply look at all the 20-30yr olds that are buying Cobalt&#039;s and Aveo&#039;s because they want a fuel saving vehicle.  These buyers will get the full frontal assault from the GM dealers, GM build &quot;quality&quot;, and horrible resale.  They will NOT be moving up to the next refresh of the Malibu or other sedan GM will have.

By putting crap vehicles into the hands of the next generation, GM is cementing their place in history.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->The math on GM&#8217;s &#8220;next generation buyer&#8221; is actually much, much simpler.</p>
<p>Simply look at all the 20-30yr olds that are buying Cobalt&#8217;s and Aveo&#8217;s because they want a fuel saving vehicle.  These buyers will get the full frontal assault from the GM dealers, GM build &#8220;quality&#8221;, and horrible resale.  They will NOT be moving up to the next refresh of the Malibu or other sedan GM will have.</p>
<p>By putting crap vehicles into the hands of the next generation, GM is cementing their place in history.<!-- google_ad_section_end --></p>
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		<title>By: ZoomZoom</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-848411</link>
		<dc:creator>ZoomZoom</dc:creator>
		<pubDate>Tue, 14 Oct 2008 16:51:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-848411</guid>
		<description>&lt;em&gt;Landcrusher : 

So my conclusion is that the domestics go to the shop more often, and each trip is a chance for graft.&lt;/em&gt;

Oh yes indeed!  If I were to buy a used car today, I&#039;d STILL avoid GM, for precisely this reason.

To Cwallace:  No cartoon girls making out on my page.  Instead, there&#039;s a vampire/zombie girl.  Not really my type!</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><em>Landcrusher : </p>
<p>So my conclusion is that the domestics go to the shop more often, and each trip is a chance for graft.</em></p>
<p>Oh yes indeed!  If I were to buy a used car today, I&#8217;d STILL avoid GM, for precisely this reason.</p>
<p>To Cwallace:  No cartoon girls making out on my page.  Instead, there&#8217;s a vampire/zombie girl.  Not really my type!<!-- google_ad_section_end --></p>
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		<title>By: Landcrusher</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-847841</link>
		<dc:creator>Landcrusher</dc:creator>
		<pubDate>Tue, 14 Oct 2008 15:59:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-847841</guid>
		<description>For carguys, the difference in ownership costs between import and domestic may not actually vary much for cars bought mid life. However, for the auto ignorant, the cheaper parts can&#039;t possibly overcome the skinning they get at the repair shop.  Either they go to a name brand place and overpay everytime, or they get taken by a private guy who detects their lack of savvy.

I had a great private garage for years, but the owner must have decided its getting time to retire because the prices doubled, and the amount of BS being fed by the writers tripled. I caught them trying to take my mom for an extra $500 on a $1,000 repair.

So my conclusion is that the domestics go to the shop more often, and each trip is a chance for graft. They can be bargains for folks who fix their own, or at least know enough not to get taken, but the rest of the country is learning a different lesson.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->For carguys, the difference in ownership costs between import and domestic may not actually vary much for cars bought mid life. However, for the auto ignorant, the cheaper parts can&#8217;t possibly overcome the skinning they get at the repair shop.  Either they go to a name brand place and overpay everytime, or they get taken by a private guy who detects their lack of savvy.</p>
<p>I had a great private garage for years, but the owner must have decided its getting time to retire because the prices doubled, and the amount of BS being fed by the writers tripled. I caught them trying to take my mom for an extra $500 on a $1,000 repair.</p>
<p>So my conclusion is that the domestics go to the shop more often, and each trip is a chance for graft. They can be bargains for folks who fix their own, or at least know enough not to get taken, but the rest of the country is learning a different lesson.<!-- google_ad_section_end --></p>
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		<title>By: KixStart</title>
		<link>http://www.thetruthaboutcars.com/domestic-car-sale-and-the-riddle-of-the-sphinx/comment-page-1/#comment-847591</link>
		<dc:creator>KixStart</dc:creator>
		<pubDate>Tue, 14 Oct 2008 15:17:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.thetruthaboutcars.com/?p=107891#comment-847591</guid>
		<description>When you look at reliability, it&#039;s not just the cost of parts and repair (which seem to me to be reasonable on my imports), it&#039;s the cost of time and the inconvenience.

One of my friends had a troublesome Detroiter some years ago and, while I didn&#039;t at all mind giving her a lift back and forth to the incompetent dealer, she really hated to impose.  Yet another reason why people don&#039;t like owning unreliable cars.  She drives a Honda, now.  Reliability was her #1 reaason for the switch.  Sort of too bad from my perspective because she paid for the rides with home-made bread.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start -->When you look at reliability, it&#8217;s not just the cost of parts and repair (which seem to me to be reasonable on my imports), it&#8217;s the cost of time and the inconvenience.</p>
<p>One of my friends had a troublesome Detroiter some years ago and, while I didn&#8217;t at all mind giving her a lift back and forth to the incompetent dealer, she really hated to impose.  Yet another reason why people don&#8217;t like owning unreliable cars.  She drives a Honda, now.  Reliability was her #1 reaason for the switch.  Sort of too bad from my perspective because she paid for the rides with home-made bread.<!-- google_ad_section_end --></p>
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