Car Sales Plummet: Automakers Just Don't Make The Cars You Want
CNNMoney says that consumers are avoiding gas guzzling SUVs and buying... nothing! whaddayaknow.
"Anywhere you want to look, credit conditions, the job market, stock market, you can see the consumers are getting hammered," Schnorbus said. "If there was ever a time when you want to sit back and wait out the storm, now is the time to do it."
But automakers also suggested some of the weakness in car sales could be due to the short supply of many fuel-efficient models after a rush to buy those vehicles in May.
"That limited supply we believed had an impact," said George Pipas, the director of sales analysis for Ford
Automakers are rushing to increase production on cars like the Prius in order to catch up with demand. Do you want a Prius or are you waiting for something even better? Or are you just, you know, already upside down on your current car loan and barely able to find the money to drive to the grocery store -- let alone buy rapidly shrinking food?
Auto sales plunge [CNNMoney]
(Photo: Fast Fords )
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Comments:
I want a new car but I don't need one, mine is paid off and I like not having monthly payments. Maybe some people are beginning to realize there IS a difference between need & want when money gets tighter. I would much rather by a hybrid than a "regular" car but most hybrids are disgustingly overpriced. I probably won't seriously start looking at cars for another 3-5 years.
The auto industry hasn't made the car I want in 30 or 40 years. I want a convertible that I can sit 5 or 6 people comfortably and have a decent sized trunk. All the domestic car makers made them in the 60's & early 70's. Olds, Caddy, Ford, Buick, Chyrsler, etc. etc.
Now most convertibles are toy sizes with no storage, or if there is a back seat, it is child sized and trunks are purse sized. Sure the Pontiac Solstice is hot looking, but try taking home groceries in it, let along going for a weekend road trip.
The auto industry will make niche vehicles that appeal to a tiny demographic, yet not one offers this type of vehicle that would appeal to a broad range of consumers (i.e. those with families and / or friends and who use their vehicle to transport items larger than a box of tissues.
Chyrsler might have saved itself if they had come out with a convertible version of the 300 sedan. You can buy 'em custom made (google, they are great looking). The largest ragtop out there, the Sebring, has just been downsized and is now smaller. Nice work!
@ohiomensch: Soo you'd be driving a Mini Cooper then? I kid I kid. Lord knows if I was getting that I wouldnt trade either. But I have kids and a wife, carrying capacity was the name of the game when I bought (right before gas prices exploded). Now its - how long until I can pay it off and have no payment... lol.
I traded my Explorer for a TDI back in 2005. Even though I pay like 30% more for fuel than my girlfriend, it still costs less to dive my car (40MPG) than her Focus.
Diesel cars will return en masse next year (the 2009 Jetta TDI is the only one right now). The diesel trucks and Touregs don't count as they get like 20MPG.
Suck it up, wait a year and get a true low mileage car that actually has nice performance.
I was planning on buying a porsche cayman this summer..
Gas prices haven't really affected me much since I work at home, but now I think that by 2010 there will actually be nice cars on the road that are 100% electric and go 200+ miles per charge. Making gas obsolete.
So I have decided to wait. Hopefully we'll get a cheaper version of tesla's new car and not ones that "look" like electric cars
@B: Hyundai Genesis Coupe? but really I'm with wormfather, BMW was the first name that came to mind.
@slim150: There is a 60,000 tesla coming out. Look out for it, but I always wait for the bugs to get out.
@GodzillaDad: Mini's parent company is... BMW. :)
@slim150: I'm in nearly the same boat: I was all set to buy an E46 BMW M3 (the outgoing model with the i6, not the new one with the hueg V8), but now we're waiting for highway-capable EVs. Hopefully Tesla's recent announcements of a $60k 'luxury' car and a sub-$30k car will prompt other makers to make EVs, thusly bringing the costs down for everyone. I'd love a 3-series EV, but it looks like BMW's current plans are to resurrect the Isetta and make it a city EV. Meh.
@buyer5:
That isn't the only reason.
People have been demanding more and more space, and bigger and bigger vehicles, independent of safety and performance.
And high-trim economy cars perform better than most sports cars of 30 years ago. Acceleration costs fuel.
If automakers wanted to make a car as small as the 40-50mpg economy cars of the 80s, with comparable power levels, they'd probably be up in the 70s for fuel economy. Hell, VW has done just that in markets other than the US.
Anyhow, I'll take a Miata coupe with a small back seat and a tall highway gear, thanks. What's that? No such thing? I'll stick with my 16 year old beater then, thanks.
@B: I tell you though, my Bimmer gets more and more fun to drive. My next care will be a boxster. Yes, that's right.
@fostina1: Same here.
My wife-to-be already has a diesel Jetta that gets great mileage on road trips. So I want to replace my commuter car with a plug-in electric. I'm also hoping the whole "super-capacitor" thing works out soon, so I don't have to worry about battery maintenance/replacement.
I'm still trying to find a decent condition mid-90's compact sedan to buy outright... like the grand am, or the chevy corsica. You know, simple 4 cylinder, standard tranny... I had both, got 40+ MPG highway, as long as I didn't have the hammer down. Loved those god damn cars. DETROIT, BRING BACK THE BASIC CAR.
@kaptainkk: how so? cars still went up in price & the automakers are still in the tank.
seems to me they chose their own fate, not us. one only needs to look at a parking lot to see the shrinking market share of american automakers.
& can you blame us? no. this isn't the first time they've screwed the pooch. in fact, that's quickly becoming their mantra.
@Wormfather is Wormfather: I have a Lexus SC, and it's so fun. Gas would have to be 10$ a gallon before I thought about trading it in. I live so close to work though, even then, it wouldn't be an issue.
@SkokieGuy: A massive convertible with a big trunk sounds pretty much as "niche" as it gets. Not that I blame you, I think everyone believes that what they want will appeal quite broadly. The big convertibles didn't even sell well in the 70s, and are even less likely to now.
@mac-phisto: You're right, they chose their own fate. That part is clear. What I meant as far as the American public is that they bought into it. I see no reason anyone needs to drive a Hummer or a Ford Excursion even if gas were a $1/gal. Just very egotistical imo.
I bought a scion xb 5 years ago and my worst tank is probably 30 mpg. I love it as prices get up to over 4 dollars... just love it. Love the faces the SUV and pickup drivers make as it costs them 150 dollars to fill up that trophy truck. Upside down on their loans, nobody wants to buy them... so screwed. The hilarity can only increase as the months go by.
@S3CT: I have one of those trophy trucks... no loan though, so i share your love of laughing at those who are upside down and can't afford their gas.
American car companies are slow to change, greedy and lazy. Ford and GM turn big cars like an Escape or Yukon into a more fuel efficient SUV (30MPG) because americans love their big cars. Chrysler doesn't even make one at the moment. None of them thought to make a 4 door sedan/ family car / commuter car hybrid to get 50+ MPG. That's why they're getting their asses handed to them. They didn't predict the economic downturn and cost of oil raising. And they're not forward thinking enough to proactively reduce American dependence on foreign oil, reduce carbon emissions or anything that might be beneficial to Americans in the long term.
@chucklebuck: Willing to purchase a sub-$20,000, 80+ MPG car today if you have one,
Honda Insight. Mine was $12k used and gets 65-70mpg.























Oh yes, buy a Prius....and be gouged by the Dealers.
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