We were discussing futures contracts and the wisdom of using currency manipulation to try and improve the market for a country's goods before the intermediate class Monday. Here is an article from the CATO Institute which finds no evidence that Japan has manipulated its currency. Indeed Japanese imports are down from 2001. But production is up in America by foreign owners producing cars here. It is simply not going to be possible for the Big Three go pay legacy costs and make the money the foreign owners do. Last night ABC broadcast from a Ford plant and will look at the Big Three on subsequent broadcasts this week. AS the article says with Michigan's Dingell chairing the Commerce Committee will Congress try to 'help.' Stay tuned.
Speaking of currencies and interest rates, here is an interesting article about Iran and how Ahamdinejad has mucked up the Iranian economy. Gee, interest rates and currencies matter in those economies too. Quick what is the name of the Iranian currency? Read the article and find out.
"The Big Three have hurt themselves with overly generous union contracts...overemphasis on light trucks and sport utility vehicles ....and a lack of exciting new models. No appreciation of the yen will save the Big Three from competition against nonunion plants turning out stylish, dependable and fuel-efficient cars" That says it all right there. The Big Three churn out so many suv's and gas guzzling trucks that with gas at $2 a gallon, we are going to lean more towards buying the fuel efficient cars. I have owned both a Ford and a Honda, and hands down I preferred the Honda over the Ford. Looks like the big three is looking for a scapegoat rather than attempt to tackel the problem of low sales. International trade is good for all parties involved and its a shame that the big three are passing the buck and trying to limit trade.
Posted by: Kimi Pope | January 30, 2007 at 11:49 AM
"The Big Three have hurt themselves with overly generous union contracts...overemphasis on light trucks and sport utility vehicles ....and a lack of exciting new models. No appreciation of the yen will save the Big Three from competition against nonunion plants turning out stylish, dependable and fuel-efficient cars" That says it all right there. The Big Three churn out so many suv's and gas guzzling trucks that with gas at $2 a gallon, we are going to lean more towards buying the fuel efficient cars. I have owned both a Ford and a Honda, and hands down I preferred the Honda over the Ford. It looked better, was more gas efficient, and I had less problems with that car overall. Looks like the big three is looking for a scapegoat rather than attempt to tackle their problem of low sales. International trade is good for all parties involved and its a shame that the big three are passing the buck and trying to limit trade through political measures.
Posted by: Kimi | January 30, 2007 at 11:51 AM
The 'legacy' costs that the three have are a result of unbridled hubris in the 1980s when they were already asking Detroit for import limitations on small Japanese trucks, at the same time they assumed their market share would go on forever and signed contracts such that even if they had that market share they would be hurting and screaming now. But Porsche has the German unions and I was stunned at how much money P. is making on sales of less than 50,000 vehicles.
I have driven or owned nearly everything and now drive a 2003 Ford Escape with 78,000 miles, not a single repair, just normal maintenance, tires, wipers etc. It is a wonderful vehicle, but now Ford has to convince everyone of that. Speaking of Honda
did you know every car in the last Indy 500 ran a HONDA engine?
Gulp.....
DLE
Posted by: Dennis Elam | January 30, 2007 at 07:54 PM
The 'legacy' costs that the three have are a result of unbridled hubris in the 1980s when they were already asking Detroit for import limitations on small Japanese trucks, at the same time they assumed their market share would go on forever and signed contracts such that even if they had that market share they would be hurting and screaming now. But Porsche has the German unions and I was stunned at how much money P. is making on sales of less than 50,000 vehicles.
I have driven or owned nearly everything and now drive a 2003 Ford Escape with 78,000 miles, not a single repair, just normal maintenance, tires, wipers etc. It is a wonderful vehicle, but now Ford has to convince everyone of that. Speaking of Honda
did you know every car in the last Indy 500 ran a HONDA engine?
Gulp.....
DLE
Posted by: Dennis Elam | January 30, 2007 at 07:54 PM
Speak of the devil....any ideas about the recent NYSE and TSE alliance and possible merger?
Here's something interesting from the announcement on Yahoo:
"Under the terms of the agreement, NYSE Group and the TSE will establish working groups to discuss such things as infrastructure, technology and trading issues, as well as market data products and regulation and governance of listed companies. They also will examine ways to enable companies who are listed on only one exchange to have better access to investors from the other."
Any ideas why this is happening now?
Jason
Posted by: Jason Raper | January 31, 2007 at 10:21 AM