Saturday, January 07, 2006

Financial woes of Ford and General Motors

It seems that one of Ford or GM will be significantly reduced in a few years. The excuses I have read are payroll expenses is to high, steel prices, models being developed like ford expedition and GM envoy and the overseas competition.

One factor that is not getting much attention is the effect of the iraq war.

My take on how iraq war has effected Ford and GM’s sales
  • Price of oil has gone up so effecting the sale of SUV’s
  • International sales are effected by negative USA vibes. Interesting how France car make PSA Peugeot Citroen is performing well
  • GM and Ford are known Republican supporters so it is easier for Democrats to purchase overseas cars. So I am guessing that local US purchases are down


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