Current Events > Why are US car manufacturers so damn dumb?

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Coastal_elite
11/27/18 10:27:21 AM
#1:


Allow me to explain. Once upon a time, Cadillac was called "the standard of the world". There was a phras like "the cadillac of watches" (rolex) or "the cadillac of pens" (mont blanc). Then GM decided to rebadge a chevy cavalier (basically the 80s version of the chevy cruze) and call it the Cadillac Cimarron... it killed the brand's reputation!

Cadillac vowed to never do that mistake again. Only to have the new Cadillac Escalade's interior look like this:

https://cars.usnews.com/static/images/Auto/izmo/i45863886/2018_chevrolet_suburban_dashboard.jpg

Kidding! That's the chevy. This is the caddy:

https://www.cadillac.com/content/dam/cadillac/na/us/english/index/vehicles/2019/crossovers-suvs/escalade-esv/gallery/lm/vehicles-escalade-esv-gallery-interior-02-l-m.jpg?imwidth=1200

But that is not the stupidity I am referring to now:

Remember the 2000s? US Automakers put all their eggs in one basket in the 90s, the SUV basket. Cars are out, SUV's are in. Then the economic meltdown happened and SUVs were too expensive and so was their fuel. People stopped buying SUVs and the big 3 automakers had nothing to sell. They were caught with their pants down and paid dearly for it.

Fast forward to today... turns out that Ford and Chevy are pretty much stopping all car sales and focusing on... SUVs. GREAT IDEA! Even Cadillac will become a SUV brand now.

The US will be left with no automakers, Chrysler is now Italian (and in life support), VW wants to buy Ford and... Chevy are dumbasses.

It makes me angry.
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SK8T3R215
11/27/18 10:30:39 AM
#2:


Consumers don't want cars hth
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Darkman124
11/27/18 10:32:12 AM
#3:


automobile manufacturing is no longer a particularly large part of the economy
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Coastal_elite
11/27/18 10:35:49 AM
#4:


SK8T3R215 posted...
Consumers don't want cars hth


honda accord and civic sales are doing just fine. Or toyota camry, avalon and corolla. VW still sells jettas, golfs and passats. BMW sells the 3,5,7 and m3, m5 and alpina 7 series. Mercedes sells the CLA, C, E and S classes. Audi sells the A3,A4, A6 and A8. How are those Kia and Hyundai sedans selling again?

It's american sedans that are not selling that well (they were selling ok), mainly because they're either shit (try driving a cruze or a focus) or they are great but they haven't been updated in a decade or at least 5 years (e.g. Taurus, 300C)
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Coastal_elite
11/27/18 10:36:12 AM
#5:


Darkman124 posted...
automobile manufacturing is no longer a particularly large part of the economy


Not sure what your point is.
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Darkman124
11/27/18 10:37:50 AM
#6:


Coastal_elite posted...
Darkman124 posted...
automobile manufacturing is no longer a particularly large part of the economy


Not sure what your point is.


when unit sales fall, a move to higher margin items is common
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voldothegr8
11/27/18 10:38:57 AM
#7:


Maybe American manufacturers should build shit that works and doesn't need a mechanic every 6 months or less. If Ford and Chevy cars held up like Japanese cars they probably wouldn't be in this mess. That's why so few people want American made anymore, they're built to break.
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KILBOTz
11/27/18 10:42:10 AM
#8:


If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.
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Coastal_elite
11/27/18 10:45:02 AM
#9:


Darkman124 posted...
Coastal_elite posted...
Darkman124 posted...
automobile manufacturing is no longer a particularly large part of the economy


Not sure what your point is.


when unit sales fall, a move to higher margin items is common


Yes. But it is unwise to put all your eggs in the same basket. That didn't work out in the late 90s/early 2000s and it won't now either.
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CruelBuffalo
11/27/18 10:45:46 AM
#10:


KILBOTz posted...
If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.


Chevy killing the eletric hybrid. The Volt. They said they are gonna focus on electric/self driving. Well see...
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Coastal_elite
11/27/18 10:45:57 AM
#11:


KILBOTz posted...
If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.


imagine you're in a recession.

You can either buy a 15k accord or a 35k hybrid SUV. Which one would you buy?
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Darkman124
11/27/18 10:46:49 AM
#12:


Coastal_elite posted...
KILBOTz posted...
If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.


imagine you're in a recession.

You can either buy a 15k accord or a 35k hybrid SUV. Which one would you buy?


neither, probably.
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Coastal_elite
11/27/18 10:48:43 AM
#13:


Darkman124 posted...
Coastal_elite posted...
KILBOTz posted...
If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.


imagine you're in a recession.

You can either buy a 15k accord or a 35k hybrid SUV. Which one would you buy?


neither, probably.


*sigh*

Alright then. You know? Margins are huge on Escalades and suburbans. Let's just sell that. I am sure things will be alright come the next recession *buys VW stock*
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Kombucha
11/27/18 10:49:39 AM
#14:


Meh, hopefully Tesla eats their share of the market as they begin to roll out new products and scale.
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Darkman124
11/27/18 10:51:57 AM
#15:


Put simply, if the cash flow generated from selling one of those 35k hybrid SUVs matches that of 4-5 of those accords, the SUV builder might see its cash flow better protected in a recession since purchase of all vehicles would drop, but the percentile drop of theirs would be lower since it was already focused on an elite market whose lifestyle expense purchasing capability is unaltered by the economy, whereas the accord's buyers were middle class folk who decided to keep their old cars for much longer.

We saw this in action in the 2008 recession- middle class retailers like JCP got destroyed; upper class brands like PRL showed remarkable resilience. The reason was margin.

One of the problems US car manufacturers faced during the recession was they were building SUVs for the middle class--aggressive pricing, better margin than a sedan, but not significantly so. If they're moving to a more luxury market, they'll likely be better protected.

Also, I don't know that we can say with confidence we're heading for a recession.
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Coastal_elite
11/27/18 10:57:00 AM
#16:


Darkman124 posted...
I don't know that we can say with confidence we're heading for a recession.


From your mouth to the ears of heaven! Or whatever the phrase is, you know what I mean :)
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Darkman124
11/27/18 10:57:55 AM
#17:


hey man i am just looking at trends here

the trend appears to be up

and the trend is your friend
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SK8T3R215
11/27/18 12:37:43 PM
#18:


Coastal_elite posted...
SK8T3R215 posted...
Consumers don't want cars hth


honda accord and civic sales are doing just fine. Or toyota camry, avalon and corolla. VW still sells jettas, golfs and passats. BMW sells the 3,5,7 and m3, m5 and alpina 7 series. Mercedes sells the CLA, C, E and S classes. Audi sells the A3,A4, A6 and A8. How are those Kia and Hyundai sedans selling again?

It's american sedans that are not selling that well (they were selling ok), mainly because they're either shit (try driving a cruze or a focus) or they are great but they haven't been updated in a decade or at least 5 years (e.g. Taurus, 300C)


Car sales as a whole are down about 10% from last year (last numbers from March 2018 since GM stopped doing monthly numbers). Honda car sales were up .4%, while it's light trucks were up 7%. Toyota car sales were down 6.8% while trucks were up 12.1%. VW car sales were down 31%.

idk how you're saying the foreign car sales are doing well when they are all trailing the higher margin light truck market, and the fact the US is basically a rival to Saudi Arabia and Russia in terms of oil production to help insulate gas prices somewhat. Doesn't really seem to crazy for them to say "Car sales are way down the last 7 years, why are we wasting resources on them when we can concentrate on the growing light trucks market, slim our operations now while the economy is going well and grow our margins."
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Questionmarktarius
11/27/18 12:45:37 PM
#19:


KILBOTz posted...
If they get better at electric/hybrid, I don't think going big will hurt them that much. Americans absolutely prefer larger cars, only time they don't is when gas is too expensive.

The sudden drive towards electric and killing off the zoo of rebadged passenger cars is little more than gaming the CAFE standards.

Customers want bigass pickups, and tiny-yet-expensive glorified go-carts aren't really selling. May as well make a few "zero emissions" cars sucking from the coal-based power grid, to offset those pickups measured in gallons-per-mile.
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CruelBuffalo
11/27/18 1:02:03 PM
#20:


Honestly maybe consumers who want economical cars dont want american made ones because we know theyre crap
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Questionmarktarius
11/27/18 1:30:46 PM
#21:


CruelBuffalo posted...
Honestly maybe consumers who want economical cars dont want american made ones because we know theyre crap

American cars have been a shitshow for awhile, and not just "quality" issues. Mandatory airbags, tire sensors, and emissions computers are jacking up the prices, and everyone's figured out that the difference between a $25000 Chevy and a $50000 Cadillac is mostly just stickers and slightly different-shaped body panels.
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clearaflagrantj
11/27/18 1:32:49 PM
#22:


Fixed Or Repaired Daily
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Darkman124
11/27/18 1:33:14 PM
#23:


Questionmarktarius posted...
$25000 Chevy and a $50000 Cadillac

being fair, this is also true of honda/acura, toyota/lexus, etc
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Questionmarktarius
11/27/18 1:36:45 PM
#24:


Darkman124 posted...
Questionmarktarius posted...
$25000 Chevy and a $50000 Cadillac

being fair, this is also true of honda/acura, toyota/lexus, etc

Well... yeah.
https://en.wikipedia.org/wiki/Rebadging

If you want "quality" in an american-made car, look for one built in the south, usually with a foreign brand.
Cost-competitiveness forces the "detroit" companies to cut corners to pay union wages, and they're made by union employees who can't really be fired for being bad at it.

Meanwhile, all the "safety" mandates have gutted the "cheap" market. A shitty canvas-top Citroen would have a huge market over here, but by the time airbags, tire sensors, crumplezones, and the ECM module gets engineered in, it's just another expensive samey "sporty" passenger car.
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Darkman124
11/27/18 1:42:53 PM
#25:


i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.
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clearaflagrantj
11/27/18 1:44:14 PM
#26:


Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota
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Darkman124
11/27/18 1:45:22 PM
#27:


clearaflagrantj posted...
> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

07 corolla

tbh a big part of it was my adhd was so bad that i crashed and totaled my 04 civic and i knew i would

nowadays i would feel more comfortable buying a new car
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Dat_Cracka_Jax
11/27/18 1:46:28 PM
#28:


I agree with you TC, but why do they have to be smart if they will just get another bailout if things get bad?
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Alpha218
11/27/18 1:48:36 PM
#29:


When I was in the market to buy a car last year I didnt even look at any American models. Their reputation is trash after the stupid decisions they made that got them into trouble in the recession and they make stupid, greedy decisions like this that will cost 15,000 people their jobs.

But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.
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Questionmarktarius
11/27/18 1:49:16 PM
#30:


clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.

Alpha218 posted...
But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.

It was probably made in Kentucky anyway.
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booboy
11/27/18 1:50:40 PM
#31:


I'm really not sure why the US companies can't figure out the formula for good compact and midsize cars. Good chassis + responsive engine + reliability + a few creature comforts = good car in those segments.
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clearaflagrantj
11/27/18 1:52:43 PM
#32:


Questionmarktarius posted...
Why not?
Leave new cars to the suckers.

More and more people these days are buying used cars to the point where they're so expensive they're sometimes not even worth it. If you buy a new car every 10-15 years with the intent of driving it into the ground it's just as financially viable.

Not discrediting used at all though. I drive an '06 Camry.
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Questionmarktarius
11/27/18 1:53:08 PM
#33:


booboy posted...
I'm really not sure why the US companies can't figure out the formula for good compact and midsize cars. Good chassis + responsive engine + reliability + a few creature comforts = good car in those segments.

I dunno. There's probably a huge market for a sub-$8k shitbox.
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Darkman124
11/27/18 1:54:11 PM
#34:


hard to say. used leafs still don't sell and they're my go-to for an ideal priced sub-$8 shitbox

+ they're not shitboxes
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voldothegr8
11/27/18 1:54:31 PM
#35:


booboy posted...
I'm really not sure why the US companies can't figure out the formula for good compact and midsize cars. Good chassis + responsive engine + reliability + a few creature comforts = good car in those segments.

American manufactures refuse to build a reliable car, they build them to break as they always have and won't change. That's what allowed Toyota and Honda to crush them and continue crushing them.
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Alpha218
11/27/18 1:57:18 PM
#36:


Questionmarktarius posted...
clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.

Alpha218 posted...
But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.

It was probably made in Kentucky anyway.

I think so actually. Thing is if American car makers dont want to make a reliable car for someone like me then Im not obligated to buy from them. They already know what happened the last time they pulled this.
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Questionmarktarius
11/27/18 1:58:01 PM
#37:


voldothegr8 posted...
booboy posted...
I'm really not sure why the US companies can't figure out the formula for good compact and midsize cars. Good chassis + responsive engine + reliability + a few creature comforts = good car in those segments.

American manufactures refuse to build a reliable car, they build them to break as they always have and won't change. That's what allowed Toyota and Honda to crush them and continue crushing them.

When the first step to changing the battery is "remove front left wheel", you're just plain fucking up.

https://www.youtube.com/watch?v=nv0fJsS62kQ" data-time="
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EdgeMaster
11/27/18 2:04:16 PM
#38:


Questionmarktarius posted...
clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.


Agreed. Buying a brand new car is almost never a good idea. I drive a 2012 Infiniti G37 and I paid as much for it as most cheap Hondas and Toyotas sell for from 2015-2018.

Exception is some luxury cars like Mercedes... if you cant afford a new one, you cant afford a used one lol.

This doesnt apply to some cars like Lexus where they have a reputation for reliability (because Toyota...). Cant think of a good reason why you would pay $40k or more for a brand new one when you could spend $10k on a mid 2000s one with plenty of life left in it.
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Bossdog421
11/27/18 2:17:57 PM
#39:


Meanwhile at Dodge... Demons and Hellephants roaming wild.
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kinetika_
11/27/18 2:21:02 PM
#40:


Coastal_elite posted...
SK8T3R215 posted...
Consumers don't want cars hth


honda accord and civic sales are doing just fine. Or toyota camry, avalon and corolla. VW still sells jettas, golfs and passats. BMW sells the 3,5,7 and m3, m5 and alpina 7 series. Mercedes sells the CLA, C, E and S classes. Audi sells the A3,A4, A6 and A8. How are those Kia and Hyundai sedans selling again?

It's american sedans that are not selling that well (they were selling ok), mainly because they're either shit (try driving a cruze or a focus) or they are great but they haven't been updated in a decade or at least 5 years (e.g. Taurus, 300C)


List all that and make no mention to the amazingly popular Nissan sedan line... wow.
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JBaLLEN66
11/27/18 2:24:25 PM
#41:


voldothegr8 posted...
Maybe American manufacturers should build shit that works and doesn't need a mechanic every 6 months or less. If Ford and Chevy cars held up like Japanese cars they probably wouldn't be in this mess. That's why so few people want American made anymore, they're built to break.


This is an old myth that needs to be buried
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KILBOTz
11/27/18 2:25:41 PM
#42:


Alpha218 posted...
Questionmarktarius posted...
clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.

Alpha218 posted...
But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.

It was probably made in Kentucky anyway.

I think so actually. Thing is if American car makers dont want to make a reliable car for someone like me then Im not obligated to buy from them. They already know what happened the last time they pulled this.


Most American V8s are very reliable.
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JBaLLEN66
11/27/18 2:33:11 PM
#43:


I work in finance for a major American automobile company, here are my reasons.

1). The dealerships are separately owned and are obsolete and financial/logistical bottleneck for manufacturing company.

2). Cars are getting more expensive year by year. I think the average payment I review is around 300 and up. These new trucks you see on the road run up to 700 plus a month easily.

3). Wages have failed to increase with cost of living, which means debt load increases, which means your average credit score decreases. All this increases chances of repossessing the car which is bad lol. We call this sub prime paper and this is on the rise in the industry so you have the dealerships that need to move more metal to stay afloat but the banks cant also handle all this sub prime paper. In addition, we are handing out 0% interest rates on 500 credit scores right now.

4). They are still corporations which consists of a fortress of buearacracy and plenty of nepotism and good ole boyism going around. Theres much more, but I really do not want to type any more lol.
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JBaLLEN66
11/27/18 2:34:48 PM
#44:


KILBOTz posted...
Alpha218 posted...
Questionmarktarius posted...
clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.

Alpha218 posted...
But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.

It was probably made in Kentucky anyway.

I think so actually. Thing is if American car makers dont want to make a reliable car for someone like me then Im not obligated to buy from them. They already know what happened the last time they pulled this.


Most American V8s are very reliable.


Most cars today are very reliable, and this American car myth is a 80s issue. I interact with Nissan employees and they even admit their cars have issues.
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booboy
11/27/18 2:35:01 PM
#45:


KILBOTz posted...
Alpha218 posted...
Questionmarktarius posted...
clearaflagrantj posted...
Darkman124 posted...
i just buy used and call it a day.

used market isn't quite as bad now as it was 5 years ago.

> super wealthy literal rocket scientist drives reasonable '08 Hyundai Sonota

Why not?
Leave new cars to the suckers.

Alpha218 posted...
But sure, Im supposed to buy American. Im fine with my Subaru Impreza thanks.

It was probably made in Kentucky anyway.

I think so actually. Thing is if American car makers dont want to make a reliable car for someone like me then Im not obligated to buy from them. They already know what happened the last time they pulled this.


Most American V8s are very reliable.


True, the US companies know how to V8, with a smattering of decent V6 engines. For other 6 cylinders, as well as 4 cylinders, Japan has those pretty well on lock.
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voldothegr8
11/27/18 3:01:43 PM
#46:


JBaLLEN66 posted...
voldothegr8 posted...
Maybe American manufacturers should build shit that works and doesn't need a mechanic every 6 months or less. If Ford and Chevy cars held up like Japanese cars they probably wouldn't be in this mess. That's why so few people want American made anymore, they're built to break.


This is an old myth that needs to be buried

Wife and I own both American cars, always at the mechanic. Since not buying American but used all the same, wife and I are rarely at the mechanic. Anecdotal I know, but it wasn't a myth in my case. Maybe saying they're built to break is extreme but they're definitely less reliable and break far more often than Toyota or Honda to name a few. And yes every manufacturer makes stinkers but why settle for anything less than solid reliability, which American makers can't seem to do unless it's a truck or muscle car.
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JBaLLEN66
11/27/18 3:11:42 PM
#47:


voldothegr8 posted...
JBaLLEN66 posted...
voldothegr8 posted...
Maybe American manufacturers should build shit that works and doesn't need a mechanic every 6 months or less. If Ford and Chevy cars held up like Japanese cars they probably wouldn't be in this mess. That's why so few people want American made anymore, they're built to break.


This is an old myth that needs to be buried

Wife and I own both American cars, always at the mechanic. Since not buying American but used all the same, wife and I are rarely at the mechanic. Anecdotal I know, but it wasn't a myth in my case. Maybe saying they're built to break is extreme but they're definitely less reliable and break far more often than Toyota or Honda to name a few. And yes every manufacturer makes stinkers but why settle for anything less than solid reliability, which American makers can't seem to do unless it's a truck or muscle car.


Hence why American auto companies are committing to trucks and suvs. I dont disagree that the Asians make better cars but American cars have gotten better.
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Krojen
11/27/18 3:15:18 PM
#48:


Kombucha posted...
Meh, hopefully Tesla eats their share of the market as they begin to roll out new products and scale.

They have and they will.
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CruelBuffalo
11/27/18 4:37:36 PM
#49:


I love my Toyota. Been running amazing since 2011 and will likely buy a Lexus or another Toyota in 2020-2022
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