Fireworks at the GM Annual Shareholder Meeting?
GM CEO Richard Wagoner is expected to announce a turnaround plan. Since changing anything at GM is like pulling teeth, the Wagoner plan is expected to involve fairies and massive amounts of enamel & dentin stashed under pillows all across the GM universe.
In March, Wagoner announced that GM lost $1.1 Billion in the first quarter. Coincidentally, $1.1 Billion is how much Hyundai spent to build its Alabama plant. Hyundai's plant will ultimately have the capacity to build 300,000 cars and light trucks. Coincidentally, 300,000 is about the total annual sales volume of GM's Buick division, or thought of another way, GM's smallest three divisions (Saab, Hummer & Saturn) put together.
The Car Connection - GM Braces for Shareholder Gripes - This time, it?s Wagoner?s big shot.
Monday, June 06, 2005
Thursday, June 02, 2005
Three Seat Crossover Comparison
This month marks the formal release of the Subaru B9 Tribeca, a crossover SUV with three rows of seats. I put together an Edmunds.com comparison of similar vehicles. What stands out is the tremendous price advantage held by the Ford Freestyle, about $6,000 in this set-up. The Ford has a lower horsepower engine, but according to multiple sources, it is anything but slow thanks to an innovative CVT transmission. With 0-60 coming in at under 9 seconds even with AWD, the Freestyle can get out of its own way. When the Freestyle was first introduced, I called it the "style fee" due to generic SUV styling. In all fairness, the styling is neither better nor worse than average for this class of vehicle.
Comparator - Print
This month marks the formal release of the Subaru B9 Tribeca, a crossover SUV with three rows of seats. I put together an Edmunds.com comparison of similar vehicles. What stands out is the tremendous price advantage held by the Ford Freestyle, about $6,000 in this set-up. The Ford has a lower horsepower engine, but according to multiple sources, it is anything but slow thanks to an innovative CVT transmission. With 0-60 coming in at under 9 seconds even with AWD, the Freestyle can get out of its own way. When the Freestyle was first introduced, I called it the "style fee" due to generic SUV styling. In all fairness, the styling is neither better nor worse than average for this class of vehicle.
Comparator - Print
True or False: It costs more to own a Honda Civic than it does a Dodge Ram 2500.
Answer: False, but it's closer than one might think -- at least for the first year. Even though the fuel cost for 15,000 miles for the Honda is only $653, the depreciation on the Civic is $5,252 for the first year, compared to $2,891 on the Dodge Ram. Thanks to higher financing, taxes, insurance, taxes and maintenance, the Dodge truck costs $10,339 for the first year compared to $9,403 for the Civic. Over the long term, the Civic is much cheaper. The 5 year cost on the Civic is $28,116 versus $43,707 for the Dodge. The difference: $15,591. It could be worse though, remember from my previous post, over 5 years, GMC pick-up cost about $10,000 more than the Dodge.
What about SUVs? A Nissan Armada is rated at $53,195 over 5 years, with a whopping $17,661 coming out of your pocket in the first year.
It's clear then that your choice in vehicle can easily make a $5,000 a year difference in your net worth over time. That difference can either be ameliorated or exaggerated based upon your choice of new versus used and based on how long you choose to keep your vehicles. If you are finding it impossible to save money, I recommend that you run the numbers an plan your car purchases far in advance. Also, these figures assume a 15,000 miles driven per year. You should budget the per mile costs of your actual vehicles when you are determining where to live. You may find that it is more economical to buy a more expensive house that is closer to work.
2005 Honda Civic True Cost to Own ratings at Edmunds
Answer: False, but it's closer than one might think -- at least for the first year. Even though the fuel cost for 15,000 miles for the Honda is only $653, the depreciation on the Civic is $5,252 for the first year, compared to $2,891 on the Dodge Ram. Thanks to higher financing, taxes, insurance, taxes and maintenance, the Dodge truck costs $10,339 for the first year compared to $9,403 for the Civic. Over the long term, the Civic is much cheaper. The 5 year cost on the Civic is $28,116 versus $43,707 for the Dodge. The difference: $15,591. It could be worse though, remember from my previous post, over 5 years, GMC pick-up cost about $10,000 more than the Dodge.
What about SUVs? A Nissan Armada is rated at $53,195 over 5 years, with a whopping $17,661 coming out of your pocket in the first year.
It's clear then that your choice in vehicle can easily make a $5,000 a year difference in your net worth over time. That difference can either be ameliorated or exaggerated based upon your choice of new versus used and based on how long you choose to keep your vehicles. If you are finding it impossible to save money, I recommend that you run the numbers an plan your car purchases far in advance. Also, these figures assume a 15,000 miles driven per year. You should budget the per mile costs of your actual vehicles when you are determining where to live. You may find that it is more economical to buy a more expensive house that is closer to work.
2005 Honda Civic True Cost to Own ratings at Edmunds
How much does it cost to tow your bass boat?
Here's an Edmunds.com "True Cost to Own" printout on a Ford F150 4wd.
2005 Ford F-150 True Cost to Own ratings at Edmunds
Over 5 years, this vehicle will cost $46,124 or $.61 per mile. Like most vehicles, a higher percentage of the cost to own is depreciation than fuel. Depreciation is $5659 in year one but goes down to $2303 in year 5. With fuel costs of about $2000 for 15,000 miles, it's easy to see how drivers of full-sized trucks don't sweat fuel prices much. It's the price of the truck itself that predominates.
Incidently, Edmund calculates the TCO for the Toyota Tundra at $45,165 based on slightly lower depreciation and operating costs. On the other hand, the 2005 GMC Sierra 1500HD is rated at a True Cost to Own of $53,375. So, if you can believe these figures, you can buy yourself a $7000 vacation in Hawaii (or a used bass boat) every 5 years just by choosing a Ford over a GMC. And if you really wanted to save money, you could get a 2004 Dodge Ram Pickup 2500. This is an even bigger truck than those described above, and instead of sucking down $2000 in gas a year, it slurps $2700 to $3000. Even with the extra gas money, the True Cost to Own the Dodge over 5 years is only $43,707. What's the difference? Depreciation. First year depreciation is only $2,891. Fifth year depreciation is only $1859.
From a public policy standpoint, we will not achieve meaningful fuel savings until the cost of fuel relative to the total cost of ownership goes up substantially.
Here's an Edmunds.com "True Cost to Own" printout on a Ford F150 4wd.
2005 Ford F-150 True Cost to Own ratings at Edmunds
Over 5 years, this vehicle will cost $46,124 or $.61 per mile. Like most vehicles, a higher percentage of the cost to own is depreciation than fuel. Depreciation is $5659 in year one but goes down to $2303 in year 5. With fuel costs of about $2000 for 15,000 miles, it's easy to see how drivers of full-sized trucks don't sweat fuel prices much. It's the price of the truck itself that predominates.
Incidently, Edmund calculates the TCO for the Toyota Tundra at $45,165 based on slightly lower depreciation and operating costs. On the other hand, the 2005 GMC Sierra 1500HD is rated at a True Cost to Own of $53,375. So, if you can believe these figures, you can buy yourself a $7000 vacation in Hawaii (or a used bass boat) every 5 years just by choosing a Ford over a GMC. And if you really wanted to save money, you could get a 2004 Dodge Ram Pickup 2500. This is an even bigger truck than those described above, and instead of sucking down $2000 in gas a year, it slurps $2700 to $3000. Even with the extra gas money, the True Cost to Own the Dodge over 5 years is only $43,707. What's the difference? Depreciation. First year depreciation is only $2,891. Fifth year depreciation is only $1859.
From a public policy standpoint, we will not achieve meaningful fuel savings until the cost of fuel relative to the total cost of ownership goes up substantially.
Overcapacity in China - Part One
Chinese domestic auto sales went down 4% this year. That country already has more capacity than domestic demand. Even with that, foreign automakers are investing $12 Billion to triple capacity there before the end of the decade.
(Not in this press release) Honda announced that it was going to import Chinese-made Fit minicars into Europe.
Research and Markets: China's Auto Market Faces Increasing Oversupply in the Next Two Years
Chinese domestic auto sales went down 4% this year. That country already has more capacity than domestic demand. Even with that, foreign automakers are investing $12 Billion to triple capacity there before the end of the decade.
(Not in this press release) Honda announced that it was going to import Chinese-made Fit minicars into Europe.
Research and Markets: China's Auto Market Faces Increasing Oversupply in the Next Two Years
Rosie O'Donnell's Most Shocking Confession: I Bought A Pontiac Aztek
formerlyROSIE: 6 months after leaving
formerlyROSIE: 6 months after leaving
Wednesday, June 01, 2005
Strike 2 for General Motors Marketing - gmprovingrounds.com
General Motors has a gimmicky marketing website gmprovinggrounds.com. Unfortunately, it has a fixed browser window size without a scrollbar, and all of the feature's aren't accessible at 800x600 through MSIE 6.0. So, I'll pass.
That's marketing money wasted. Speaking of wasted marketing money. Earlier this spring, I got a certificate to test drive a Buick and receive a gift certificate. I went to the local Buick dealer to test drive a car, I waited over an hour, but they had no dealer plates left, so I left without test driving the car. They did validate my certificate, but it's been two months, and I haven't received anything.
The Buick LaCrosse might be a good car. I wouldn't know, I didn't get a chance to drive one. Hare Buick Pontiac GMC didn't think it was a good idea to have as many dealer plates as it has salespeople.
GM has to learn that you can't have cars 90% as good as the competition. You can't have dealers 90% as good as the competition either.
Proving Grounds
General Motors has a gimmicky marketing website gmprovinggrounds.com. Unfortunately, it has a fixed browser window size without a scrollbar, and all of the feature's aren't accessible at 800x600 through MSIE 6.0. So, I'll pass.
That's marketing money wasted. Speaking of wasted marketing money. Earlier this spring, I got a certificate to test drive a Buick and receive a gift certificate. I went to the local Buick dealer to test drive a car, I waited over an hour, but they had no dealer plates left, so I left without test driving the car. They did validate my certificate, but it's been two months, and I haven't received anything.
The Buick LaCrosse might be a good car. I wouldn't know, I didn't get a chance to drive one. Hare Buick Pontiac GMC didn't think it was a good idea to have as many dealer plates as it has salespeople.
GM has to learn that you can't have cars 90% as good as the competition. You can't have dealers 90% as good as the competition either.
Proving Grounds
When you think Child Pornography - Think Yahoo!
I'm trying out for a marketing gig for Yahoo! The article linked below discusses an investigatory journalism article that blows the lid off of Yahoo!'s Child Pornography chatrooms. Yahoo hosts sites geared to adults trying to pick up kids. Pepsi, Countrywide Mortgage, and other major firms advertised on the site.
TheIndyChannel.com - Technology - Investigation Shows Big Business Funding Sex Chat Rooms
I'm trying out for a marketing gig for Yahoo! The article linked below discusses an investigatory journalism article that blows the lid off of Yahoo!'s Child Pornography chatrooms. Yahoo hosts sites geared to adults trying to pick up kids. Pepsi, Countrywide Mortgage, and other major firms advertised on the site.
TheIndyChannel.com - Technology - Investigation Shows Big Business Funding Sex Chat Rooms
GM Extends Employee Discount to Everybody
From June 1 to July 5.
TheIndyChannel.com - Automotive - General Motors Offers Employee Discounts To All Buyers
From June 1 to July 5.
TheIndyChannel.com - Automotive - General Motors Offers Employee Discounts To All Buyers
Fight Bush - Buy your gas at Citgo?
The progressive website commondreams.org has a campaign "Buy your gas at Citgo: Join the BUY-cott!" What's that all about? The argument is that our foreign policy has been geared more to the interests of big oil companies and less to the needs of people. The main beneficiaries have been the ruling parties of Saudi Arabia & the like.
Now here's what I didn't know: Citgo is 100% owned by the Venezuelan government. According to commondream.org, by buying at Citgo, you keep your petroleum dollars here in the western hemisphere at least.
Buy Your Gas at Citgo: Join the BUY-cott!
I googled to check if what they said was true, that Venezuela owned Citgo. Yep, it checks out, BUT according to Forbes.com, Venezuela is planning on selling its US refining operations within two years. (http://www.forbes.com/home/feeds/ap/2005/02/01/ap1797688.html.
COMING SOON - THE BANKRUPTCY DIVORCE
The interconnections between bankruptcy law and divorce law have always made my head spin. Financial problems are a big cause of divorce, and divorce is a big cause of financial problems.
I was reading about the new law (which has become known as BARF for Bankruptcy Abuse Reform Fiasco) issue of NCLC Reports. as you know, most of our UAW members make over the average income for their families. If so, to determine what if anything you have to pay to creditors, you need to go through a complex means test.
In Truckland, how many of our clients have vehicles with ownership costs (that's not just payments, that's total ownership costs) below $475 for the first car and $338 for the second? That's it, that's the allowed transportation expense.
Now, here's the biggie that I think could lead to a small but significant number of bankruptcy planned divorces: Education expenses.
IV) In addition, the debtorÂ?s monthly expenses may
include the actual expenses for each dependent child less
than 18 years of age, not to exceed $1,500 per year per
child, to attend a private or public elementary or sec-
ondary school if the debtor provides documentation of such
expenses and a detailed explanation of why such expenses
are reasonable and necessary, and why such expenses are
not already accounted for in the National Standards,
Local Standards, or Other Necessary Expenses . . .
(Section 707(b)(2)(A)(ii)(IV))
How many private schools have tuition etc. of less than $1,500? Note, also this is elementary or secondary school only and IF the child is UNDER 18. If you have an 18 year old high school seniro, sorry Charlie. Pay money towards Junior's college expenses? Not when Citibank has its hand out.
On the other hand, court ordered child support and alimony claims are deducted as priority claims, so if you are ORDERED to pay 1/3 or 1/2 of Junior's college, you get to deduct it. sectionn 707(b)(2)(A)(IV).
Now, let's look at the spouse's income: Income of a non-filing spouse is considered in determining whether you are over the local mean and for the amount you need to pay for your debts. You can exclude the income of the spouse if you are legally separated, you live apart, and if you verify that you haven't separated just for the purposes of disassociating your income.
If you are divorced - what the ex-spouse does with his/her income is her business.
The bottom line: the "family-friendly" law that the God-fearing,heterosexuall Republicans rammed through gives couples lots of reasons to split up, and not much reason to keep a marriage together.
The progressive website commondreams.org has a campaign "Buy your gas at Citgo: Join the BUY-cott!" What's that all about? The argument is that our foreign policy has been geared more to the interests of big oil companies and less to the needs of people. The main beneficiaries have been the ruling parties of Saudi Arabia & the like.
Now here's what I didn't know: Citgo is 100% owned by the Venezuelan government. According to commondream.org, by buying at Citgo, you keep your petroleum dollars here in the western hemisphere at least.
Buy Your Gas at Citgo: Join the BUY-cott!
I googled to check if what they said was true, that Venezuela owned Citgo. Yep, it checks out, BUT according to Forbes.com, Venezuela is planning on selling its US refining operations within two years. (http://www.forbes.com/home/feeds/ap/2005/02/01/ap1797688.html.
COMING SOON - THE BANKRUPTCY DIVORCE
The interconnections between bankruptcy law and divorce law have always made my head spin. Financial problems are a big cause of divorce, and divorce is a big cause of financial problems.
I was reading about the new law (which has become known as BARF for Bankruptcy Abuse Reform Fiasco) issue of NCLC Reports. as you know, most of our UAW members make over the average income for their families. If so, to determine what if anything you have to pay to creditors, you need to go through a complex means test.
In Truckland, how many of our clients have vehicles with ownership costs (that's not just payments, that's total ownership costs) below $475 for the first car and $338 for the second? That's it, that's the allowed transportation expense.
Now, here's the biggie that I think could lead to a small but significant number of bankruptcy planned divorces: Education expenses.
IV) In addition, the debtorÂ?s monthly expenses may
include the actual expenses for each dependent child less
than 18 years of age, not to exceed $1,500 per year per
child, to attend a private or public elementary or sec-
ondary school if the debtor provides documentation of such
expenses and a detailed explanation of why such expenses
are reasonable and necessary, and why such expenses are
not already accounted for in the National Standards,
Local Standards, or Other Necessary Expenses . . .
(Section 707(b)(2)(A)(ii)(IV))
How many private schools have tuition etc. of less than $1,500? Note, also this is elementary or secondary school only and IF the child is UNDER 18. If you have an 18 year old high school seniro, sorry Charlie. Pay money towards Junior's college expenses? Not when Citibank has its hand out.
On the other hand, court ordered child support and alimony claims are deducted as priority claims, so if you are ORDERED to pay 1/3 or 1/2 of Junior's college, you get to deduct it. sectionn 707(b)(2)(A)(IV).
Now, let's look at the spouse's income: Income of a non-filing spouse is considered in determining whether you are over the local mean and for the amount you need to pay for your debts. You can exclude the income of the spouse if you are legally separated, you live apart, and if you verify that you haven't separated just for the purposes of disassociating your income.
If you are divorced - what the ex-spouse does with his/her income is her business.
The bottom line: the "family-friendly" law that the God-fearing,heterosexuall Republicans rammed through gives couples lots of reasons to split up, and not much reason to keep a marriage together.
Subscribe to:
Posts (Atom)
