I recently wrote an article entitled “Going Ugly On Purpose.” This was a piece about how automakers are intentionally uglifying their base-level vehicles so people pay more for nicer models. Many of you read this story from start to finish, absorbed the facts, perused the nuances, and then scrolled straight to the comments where you got into a fight about California versus Texas.
Between the comments, private messages and emails, you, the readers, sent over 100 comments on how to get the smoke smell out of Project Volvo. Thank you for providing me one of the rare opportunities to harness “crowdsourcing” in a way that isn’t some nebulous social-media pie-in-the-sky frivolity. I’ve made great strides with shampoo and vinegar/water solutions, and will be moving on to coffee grounds and other tactics. In the mean time, something else has caught my attention.
It’s been some time since since we had a “Trade War Watch” on mounting trade tensions in the auto industry, and thank goodness for that. In this economic climate of cuts, currency swings and bankruptcies, what we need are things which will make the situation worse, right? In May I reported about how the EU put a 20.6 percent tariff on aluminium wheels from China. The EU did this in response to complaints from domestic manufacturers. Naturally, this left a sour taste in China’s mouth. Well, over 5 months later, you’d think that the EU would have calmed down and this nasty business would be swept under the carpet, right? Erm, not quite….
Now that the Conservatives (with the help of the Liberal Democrats) have come to power in the UK, the Conservatives are going to push forward their plans for a reduction in the UK deficit (i.e savage cuts). Now, while I agree in the long term, this will be good for the UK, in the short term, it will cause higher unemployment and severe “belt tightening”. The UK isn’t the only country with this frame of thinking. Only today, the Spanish government has announced deep budget cuts in order to reduce their deficit and to prevent markets from thinking of them as the next “Greece”. So, with the UK and Spain making these budget cuts, the Euro looking unsteady and Greece still not convincing markets, what else could make Europe stare at another recession? That’s right, a possible trade war. (Read More…)
Sajeev, what ever happened to 14-inch wheels? I mean, seriously, does the Caliber really need to be shod with 17-inchers? Why does my dad’s new half-ton pickup have 17-inch wheels? His old one had what used to be the industry standard 235-75R15. He about had a coronary when he found out new tires would be over $100 each. Perhaps if I put on my tinfoil hat, I’d say the tire companies are behind this. So really, does the average family sedan or minivan really need anything bigger that a 15-inch wheel/tire?