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Jay Currie

One Damn Thing After Another

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We Don't Make Cars, We Make Money

Ian Welch at Tilting at Windmills has an excellent post up on GM and Ford becoming financial companies rather than car makers.

US consumers can’t afford the cars being offered to them. It’s that simple. They can’t afford the initial cost and they can’t afford the running costs. But GM and Ford weren’t willing to give up their margins. So instead of offering consumers cars they could afford, cars they would want – they bribed them. They paid them to buy cars. (A 0% or 1% loan is paying someone.) Strangely, paying your customers to buy your product isn’t a good way to be profitable.
tilting at windmills
It's a post which is a great example of reality based analysis and it strikes at the heart of the con which powers Belinda's Dad's industry.