What is the impact of fewer cars being made?

[Bobpantax]

GM and Ford are making fewer cars. ( I am not mentioning the other manufactureres but the same statement may also be true for them.) Future production, at least through 2009, looks like it will involve even fewer units. Fewer cars means the steel companies will be selling less steel and the steel companies will, therefore, not need to make as much stteel which means less coal usage. And, if the US consumer is not there to buy as high a volume of cheap goods from China, China will not be producing/buying as much steel and other commodities. What does all of this mean for inflation, interest rates, and commodity prices? I suggest that inflation will be stabilized or reduced. Interest rates will stay the same. Commodity prices will start dropping soon. What do you think? Assume the above is true. What companies do you think make any sense over the next 12 to 18 months?

[Sellshomesdrivesviper]

What is the impact of fewer cars being made?

FEWER JOBS BEING KEPT.

[slaughterj]

However, as fuel prices continue to rise, that will change the calculus on the location of manufacturing. It will become cheaper to manufacture locally rather than expensively ship, which may increase local jobs. Of course, higher fuels might lead to lower income for people to buy other things, which will in turn lower the amount of goods needed and lessen manufacturing.

[RoadiJeff]

Originally Posted by Sellshomesdrivesviper

What is the impact of fewer cars being made?

FEWER JOBS BEING KEPT.

Amen to that. The division of Chrysler that I've worked at for over 24 years announced Monday that they will be closing their doors, probably permanently, at the end of October.

With no significant progress toward new energy efficient vehicles in the near future I wouldn't be surprised if the rest of the company follows them within two years. A 13/16 mpg model like the Challenger isn't exactly what the majority of buyers are shopping for right now. A few muscle car enthusiasts are not going to be enough to keep the sinking ship afloat.

Just last week rumors that Chrysler was on the verge of filing for bankruptcy were strong enough that it caused Cerberus to release a statement that it was false. The roots for this had to be started somewhere - I suspect there might be a grain of truth to it.

Ah, but I'm drifting off from the original topic now. What a shame - I have more to say about Nardelli, his $200 million severance package from Home Depot for mismanaging that company, and his continued demonstration of ineptness in his current position.

[PatentLaw]

Fewer cars means less people going to get ice cream. We are now morally purified.

[Sellshomesdrivesviper]

Wow, they are now in talks with the Chinese.
Is lead paint better on our Vipers?
The run is near, and coming to an end, hold on.

[Warfang]

Originally Posted by RoadiJeff

Amen to that. The division of Chrysler that I've worked at for over 24 years announced Monday that they will be closing their doors, probably permanently, at the end of October.

With no significant progress toward new energy efficient vehicles in the near future I wouldn't be surprised if the rest of the company follows them within two years. A 13/16 mpg model like the Challenger isn't exactly what the majority of buyers are shopping for right now. A few muscle car enthusiasts are not going to be enough to keep the sinking ship afloat.

Just last week rumors that Chrysler was on the verge of filing for bankruptcy were strong enough that it caused Cerberus to release a statement that it was false. The roots for this had to be started somewhere - I suspect there might be a grain of truth to it.

Ah, but I'm drifting off from the original topic now. What a shame - I have more to say about Nardelli, his $200 million severance package from Home Depot for mismanaging that company, and his continued demonstration of ineptness in his current position.

Golden parachutes should be literal... as in I'd like to toss out some exec out of airplanes with golden parachutes.

Sometimes capitalism makes you wince... until you realize the evils of socialism.