Now this is the way the help should be given

Now this, IMAHO, is the way that help should be given to automakers and finally, someone seems to understand that no automaker's problem is going to be solved until more people start buying new cars (self-preservation motivations of the credit unions not withstanding)!!!

A group of credit unions from Michigan, Ohio, Indiana and Illinois is pledging $10 billion in low-cost auto financing to its more than 12 million members for the purchase of General Motors vehicles.
It also is working with GM to offer a price discount to members.

The plan is called Invest in America, according to a news release posted on the Michigan Credit Union League's Web site. The release said the credit union league is talking to Ford Motor Co. and Chrysler LLC about similar programs.

"This new arrangement with Midwest credit unions creates a tremendous value for GM and for thousands of credit union members," said Mark LaNeve, GM vice president of vehicle sales, service and marketing, in the release. "We appreciate the credit unions' promotional support and are pleased to make this offer."

The program started Monday and will run through June 30. It offers eligible vehicles at a price discount to credit union members and their households. Members who buy cars under the program also are eligible to get an additional $250 bonus cash between now and Jan. 5.

The program will be tested in the four states, possibly going nationwide early next year, the release said.

"Credit unions have a long history of helping hard-working Americans in troubled times," said Daniel Mica, CEO of the Credit Union National Association.

Credit union members can find details on the discounts at www.lovemycreditunion.org and obtain an authorization number to take to any GM dealership. The price discount is on purchases of eligible new Buick, Cadillac, Hummer, Saab, Chevrolet, GMC, Saturn and Pontiac vehicles. ...

Full Story: http://www.autonews.com/apps/pbcs.dll/article?AID=/20081210/ANA05/812109978/1142

:lol: it is going to take more than low interest loans and $250 cash back.

Toyota sales are down over 30% last month and they have 0% financing and bigger rebates.

:lol: it is going to take more than low interest loans and $250 cash back.

Toyota sales are down over 30% last month and they have 0% financing and bigger rebates.
The point is that there are other ways (and I think better ways) to address the problem than simply throwing taxpayer's money at the manufacturers - "bridge loans" aren't going to get people back into showrooms.

The point is that there are other ways (and I think better ways) to address the problem than simply throwing taxpayer's money at the manufacturers - "bridge loans" aren't going to get people back into showrooms.

No this plan is good and any help for those looking to buy any car in this economy should be done. Financial institutions fresh with injected bailout money to unfreeze the credit crunch should be doing anything they can to get loans out with responsible lending practices to interested parties.

What this doesn't do is fix the current need for operating cash to keep the car companies going and millions employed. Because if millions loose their job and the company closes low interest loans for said products won't do very much. Like with any problem this big it will take lots of new solutions from many sides to fix.

:lol: it is going to take more than low interest loans and $250 cash back.

Toyota sales are down over 30% last month and they have 0% financing and bigger rebates.

On a related note, Prius sales are down nearly 50% (48.7).
Ford Escape hybrids are down less than 19% (4% overall).

When compared to the sales decline of other cars, it seems to prove that Prius was more of a fad than other conventional hybrid powered vehicles.



Back to the subject, loans aren't the problem with GM and Chrysler. The problem with Chrysler is that Cerberus apparently wanted Chrysler to get Chrysler Financial and wants to either unload or destroy the auto side or turn it into a manufacturing business for everyone else. At GM, it's becoming apparent that all the loan crisis did was bring GM's problems to a head months quicker than it would have happened on it's own.

This government loan guarantee is IMO a blessing in disguise.

It gets GM out of it's go-slow, we'll-get-there-eventially reform, and will force it to stick to plans instead of flipping every time a new person fills a position.

It also glues Chrysler to Cerberus and gives Chrysler a chance to finally recover from the calamity Bob Eaton started when he sold out a Chrysler bulging with cash and successful vehicles and a world renouned product development pipeline that was full of upcoming models and a team with more gonads than any other car company on the planet. Chrysler will likely never have that situation again, but at least it now has a chance not to be sold and gutted for a single item the way AMC was for Jeep.

On a related note, Prius sales are down nearly 50% (48.7).
Ford Escape hybrids are down less than 19% (4% overall).

When compared to the sales decline of other cars, it seems to prove that Prius was more of a fad than other conventional hybrid powered vehicles.
You’ll never hear me sing any praises for the Prius but along with the huge decline in sales, let’s remember that it’s a decline in sales from tremendous volumes (hence the “large” percentage decrease).

Moving on, the Prius has never really been about fuel mileage/efficiency – it’s only more efficient than a simple four cylinder (or even some six cylinders) under specific driving conditions/usage…people who buy them often didn’t understand that or they bought them for other (image?) reasons…oh wait; that sounds a bit like a fad doesn’t it??? :)

That's a great step. Every little thing helps.

You’ll never hear me sing any praises for the Prius but along with the huge decline in sales, let’s remember that it’s a decline in sales from tremendous volumes (hence the “large” percentage decrease).


Tremendous is a bit of an exaggeration.

Tremendous is a bit of an exaggeration.
Maybe...I think Toyota considered the demand pretty tremendous.

For many months, Toyota could maintain only a one or two day inventory (and often no inventory) of Prius...they simply couldn't build them quickly enough to meet the demand.

If memory serves, the demand for the Pruis was enough to skew their ratio of domestic vs imported vehicle sales...sine the Prius is only made in Japan, all of them, of course, had to be imported.

In any case, my main point was that raw stats rarely give you the whole picture. A huge drop in demand for a particular vehicle for a given month (year on year) can only tall part of the story...if, for example, you were having a record month for that model in November '07, you could have a November '08 with 50% less demand but still have a "good" month for the model in question.

Maybe...I think Toyota considered the demand pretty tremendous.

For many months, Toyota could maintain only a one or two day inventory (and often no inventory) of Prius...they simply couldn't build them quickly enough to meet the demand.

If memory serves, the demand for the Pruis was enough to skew their ratio of domestic vs imported vehicle sales...sine the Prius is only made in Japan, all of them, of course, had to be imported.

In any case, my main point was that raw stats rarely give you the whole picture. A huge drop in demand for a particular vehicle for a given month (year on year) can only tall part of the story...if, for example, you were having a record month for that model in November '07, you could have a November '08 with 50% less demand but still have a "good" month for the model in question.

Demand was merely higher than Supply. They still sold more Impalas, MAlibus, Altimas, Civics, etc. and way more Silverados, F-150's Camry's etc. I refuse to believe that the Golden child of the automotive industry couldn't ramp up production on their golden egg.

Demand was merely higher than Supply. They still sold more Impalas, MAlibus, Altimas, Civics, etc. and way more Silverados, F-150's Camry's etc. I refuse to believe that the Golden child of the automotive industry couldn't ramp up production on their golden egg.
You can believe whatever you want but no one can just "ramp up production" of an automobile.

In any case, do you really not get my point or do you just not care? :shrug:

If you want to argue about how many vehicles sold is a "tremendous" number or that it isn't "tremendous" because somebody else sold more of something else go ahead and argue - it has zero to do with the point I was making to GuionM. :tired:

You guys do know that a new Prius is just around the corner, right? I think that might explain some of the decline. That and $1.39 gas.

Incentive towards the consumer will only get dismal results. Most people did not prepare for this economic situation and those that did are smart enough not to jump into a new vehicle unless they NEED it.

The uncertainty out there doesn't help either.


Thats why Ch. 11 makes more and more sense as you pick apart the situation.