Glenn Mercer

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  • GM and Ford: Still Easy Shorts
    Frankly I liked "gamelan" better than "gameplan" anyway (grin).
    Jun 22 12:02 pm |Rating: 0 0 |Link to Comment |View article
  • Hummer Sales Down as Gas Rises
    I never understood the appeal of a vehicle named the slang term for a sex act! (grin) Might have been better to call it Tonka...
    Jun 10 11:32 am |Rating: 0 0 |Link to Comment |View article
  • Will Toyota Lose Its Edge?
    Labor cost is of course important, but I would assert that you are looking at this through Detroit's lens, which is that "all problems are cost problems." If a Toyota has higher resale value than a Ford, then a Camry buyer will pay more for it upfront than for a Ford, as he or she gets the value back upon resale. The higher price allows Toyota to earn better profits or even pay its workers more. That is a simplistic point, but for decades Detroit ignored it. Look at the Sebring, with its cheap interior. Cheaping out the interior implies a belief that "Someone really wants a Sebring, so if we can cut $400 out of it, we'll sell more." The problem is, there is no huge untapped demand out there for a Sebring that costs $400 less. There MAY be untapped demand out there for a Sebring that is a nicer car. Thus Detroit may save $500 in labor costs on a car, but have to give up $2,000 in price cuts to sell it. Detroit has finally gotten the message and is now focusing on trying to raise value and thus price, not just keep squeezing costs. Toyota certainly has to watch its labor costs, but they will always do better to worry about price as long as Detroit is still fixated on costs.
    Apr 22 10:13 am |Rating: 0 0 |Link to Comment |View article
  • Will Tata Motors Deal Show Ford The 'Way Forward'?
    If I were Tata... I'd keep Land Rover (profitable and brings AWD technology complementary to Tata's, and is a "rugged" brand more in keeping with Tata's expansion in emerging markets) and sell Jaguar to Middle Eastern funds ASAP. Jaguar is losing money and brings Tata little AND I am sure there is a "package deal discount" in here: Ford's desire to sell the two together I am sure depressed the price. And while I am sure few people want to own ALL of Jaguar, I bet there are many who would like to take a flier on 20%. Jaguar thus sold off might recoup a lot of the cost of buying LR. Of course, all this may be blocked by covenants in the Ford sale agreement, but I look to the Aston Martin story for inspiration here.
    Mar 31 10:36 am |Rating: 0 0 |Link to Comment |View article

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