The world now has a capacity to produce 16 Million more cars than

[KlatooBNikto]

it can consume. Each year. This is even before China and India start cranking up their anticipated production capacities which is likely to run in the millions.

Where does that put GM and Ford? Behind the eighth ball, for sure.There is no conceivable way that GM and Ford can return to profitability, now or anytime in the future.What is more, I don't think they can stay there even if they achieve profitability.

Let us face it.Cars have become commodities.They are no longer the premium products of the industrial age. Here and there we will see some unique products come and seize the consumers' imagination,but nothing more.It is almost like seeing a movie hit big time while many others flop at the box office.

[mark11727]

1. And we still have to FEED the blamed things, too...!

[cthrumatrix]

7. so why do they "cost so much"? IF it's demand vs supply

[KlatooBNikto]

12. Both the demand and supply are unevenly distributed throughout

the globe.

[Ready4Change]

2. Think of this as an opportunity.

I imagine a brainstorming session in Detroit. A roomful of suits, all grimly trying to come up with a solution. Then one of them speaks these words:

"What if we started making Disposable Cars?"

Hell, Detroit would have an edge there. They made disposable cars through much of the 70's and into the 80's. They just didn't market them as disposable then.

[ReaderSushi]

3. We need mandatory recycling of cars past a certain age.

This would partially help deal with the high prices of steel and other raw materials. Older vehicles are in general more polluting, less safe and less fuel efficient so it's a good idea to get these off the roads. For the benefit of car collectors we could make exemptions on the grounds that these older vehicles not be used. Win-win situation unless I'm missing something here, it creates demand for newer cars while ridding us of the old monsters.

[dweller]

6. yeah, that ought to work...

we'll all drive hummers.

:spray:
dp

[VTMechEngr]

8. You can have my antique car, when you pry the steering wheel from my...

cold dead hands. Seriously, the joy of owning old cars is to drive them. Old cars are few and usually maintained quite well. I have a 77 VW Bus and an 86 Volvo 240 wagon. I love 'em and wouldn't let anyone take them from me. Heck, the Volvo got 28 mpg this weekend.

[dweller]

13. another 77 VW bus owner here

and i'd put another 2.0ltr in it and drive it before buying a new SUV. The VW bus is the original SUV :D

my 90 Subaru wagon still getting 28-30mpgs...i'm not giving it up.

dp

[PaulaFarrell]

10. What about the 5 tonnes or so of CO2 used in the manufacture of new cars?

If someone has an old reliable car and they don't drive alot then it will take many years to make up the cost of the manufacture of a new car. Plus cars are not fully recyclable - lots of plastic, etc, so that means more raw materials.

[GreenArrow]

4. the age of the car (as we know it) is coming to an end

just as the era of horses and buggies did. China and India are acting with the greatest of foolishness.

[Auntie Bush]

5. Horrors! I smell SMOG! I see astronomical gas prices! I see peak oil

coming sooner than expected. I'd better see alternative fuel run very SMALL cars or I see us all choking to death on all that CO2.
I see a very large class of unemployed and hard working poor and a large class of controlling, selfish super rich people. There is NO way all those heavily populated undeveloped nations can all have cars, gas to run them and air to breath. Actually I see the end of civilization as we know it.

[GreenArrow]

9. I see a reversal of the white flight of the sixties

as rich and middle class whites return to the cities to live and work, and the poor are shuttled off to the suburbs where they take the bus or train into town every morning to do the service work.

[oblivious]

11. Did they include this new Iraqi producer?

Security forces captured a reputed key member of Abu-Musab al-Zarqawi’s al-Qaida in Iraq terrorist group who is accused of building and selling cars used by suicide bombers, the Iraqi government said Tuesday.

This is in an AP article that is all over the media as usual. Modifying, ok, but building?

http://www.guardian.co.uk/worldlatest/story/0,1280,-5074756,00.html

Iraq is talking to GM about building cars in Iraq:

the ministry looks forward to implement the final contract earlier with the American GM company included constructing a cars factory in Iraq with annual product power of 90,000 salon cars, 30,000 pick up cars, and 10,000 back cars

I don't know what a back car is.

[HamdenRice]

14. Economically, this is impossible

The world can always consume an unlimited number of more cars. What you may mean is that at current prices, supply exceeds demand by 16 million.

To see why the world could consume 16 million more cars if the price were lower, just imagine a global Oprah show: "You get a car, you get a car, you get a car" etc 16 million times. You would get rid of those cars pretty quickly.

More realistically, imagine that the price of cars was somehow slashed from around $15-20,000 to $5,000. Many people who cannot afford cars would purchase them.

Of course, then you get into the cost structure of producing cars, which prevents the price from being lowered. But there is always the possibility of consuming more cars.