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At least the auto industry gets it

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miles otoole

Well-known member
May 7, 2004
No brakes: Car prices set record

The average cost of a new car at 4-year high of $27,958 due to higher financing costs.

November 17, 2005; Posted: 9:50 a.m. EST (1450 GMT)

NEW YORK (CNN/Money) - The average cost of a new car raced to a four-year high in the third quarter, according to a report by a Detroit-based bank.
The average price of a new car was $27,958, including financing charges, up six percent from a year ago, according to Comerica Bank.
It took 26.2 weeks' worth of an average person's salary to buy the average new car in the third quarter. That's 1.5 weeks longer than in the previous quarter of the year, according to the report.
"Affordability deteriorated because financing costs rose sharply and because the average consumer reacted to the great deals that were available this fall by spending more, not less, for a new car," said Dana Johnson, chief economist at Comerica Bank, in a statement released by the bank..
The report incorporates data on consumer spending for personal-use vehicles and data on auto loan terms.
Sorry, no. The auto industry does not get it......really poor example.

Ask anybody that works for an auto company. Not only that, the article specifically stated that it was mostly due to higher financing costs.
The auto industry is just about the MOST consolidated industry you can imagine. It's SO consolidated at this point that there are only two major US auto manufacturers left, and one of them is in such bad shape that bankruptcy is not out of the question.
I thought there were three US auto manfuacturers?

My response was directed at the aviation industry, since miles was comparing the two. If the airline industry would get the ball rolling, things would be a much better place for you guys. Some would lose, yes. But most would gain from consolidation.

A major shakout is what this industry needs to return to profitability.
fromunda said:
I thought there were three US auto manfuacturers?

Chrysler was acquired by what we all think of as Mercedes a few years ago. It was presented at the time as a "merger", but the reality is that they were bought.

Most of us (myself included) still think of Chrysler as "American", but in reality it's not.
Trust me, the auto industry will make the airline industry look good after whats coming down the road for them. I fully expect to get laid off from my job next year. Look at Delphi, they went from 20 some dollars an hour to 9 bucks and 20,000 laid off. The job market is Horrible right now. It's easier getting fuloughed as a pilot, than losing you job elsewhere.
I hear ya. My next-door neighbor works at a GM truck assembly plant, and he's getting more than a little nervous. The chicanery of the UAW makes ALPA and Teamsters look pretty small-time.
The auto industry has one small advantage over the airlines. They sell a product that just about every consumer needs. Kinda like Microsoft. Our problem is we sell a product not everybody needs, and for prices that just ain't high enough. Simple economics really, take in more than you spend and you make money!!
The auto industry??!!!!

anyone checked Ford and GM stock lately?

that industry is in for a hit that will make the airlines look successful.

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