Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





High End Luxury Cars

15395405425445451156

Comments

  • lexusguylexusguy Posts: 6,419
    I'm not even sure why this is an argument. The guy worried about BMW's balance sheet should be their CFO. Why do we even care? I thought this forum was supposed to be about the cars that BMW actually makes.
  • deweydewey Posts: 5,243
    Lexusguy you are correct this discussion has sweved a bit off topic!

    OAC what I said was not meant as an insult! I myself am ignorant about many things and that is not a self-insult! Most smart people are ignorant about accounting terminology and that is not an insult.

    But if I boasted about the details of mechanical engineering without knowing what I am talking about then I would rightfully deserve to be called ignorant.
  • Lexusguy, I wish I worked for Jaguar. I recommend everyone to visit prefergorgeous.com. The 2007 Jaguar XK is receiving outstanding reviews and it will sell like hot cakes. I think Jaguar will rule the luxury automobile industry because the company added a distinctive feature on the exterior of its automobiles for the 2006 and beyond models. The automobiles will be so distinctive than everything on the road.
  • It appears you are completely ignorant

    Big words for someone who falsely accuse others of name-calling.

    For what it's worth, my post #11500 was a follow up reply to your post #11492, in which you stated:

    "BUT profit deterioration for the latest quarter is a industry phenemona that includes both Toyota and BMW!"

    That statement of yours is simply not correct because Toyota posted profit increase for the latest quarter. In fact, I quoted your above statement in my post. Your post #11473 had zilch to do with my post #11500.

    If you are not able to following threading of this forum and prefer to indulge in obfuscation and name-calling instead, you are only making a fool out of yourself.
  • Most smart people are ignorant about accounting terminology and that is not an insult.

    What terminology are you talking about? For crying out loud, I actually was an accounting minor. Are you talking about EBIT or EBITA?? Obviously from Toyota statement, they are not amortizing R&D or good-will in the "operating profit" number (taking a up-front hit instead). In any case, the statement of yours that I was correcting did not even have "operating profit" but instead you said Toyota profit was deteriorating (post #11492); that statement simply did not jive with facts.

    But if I boasted about the details of mechanical engineering without knowing what I am talking about then I would rightfully deserve to be called ignorant.

    I will refrain from this open invitation, for now ;-)
  • patpat Posts: 10,421
    That's enough squabbling - any of you who feel a need to continue your personal issues need to take it off-line.

    Does anyone want to get back to the cars?
  • deweydewey Posts: 5,243
    A article about the success of BMW sales!

    The CEO of BMW North American Operations is bewildered by his following observation :

    With costly gas and a hissing real-estate bubble, however, even Purves wonders why so many people are buying his company's expensive cars. "I'm confused at the moment about the economy,"

    BMW
  • ljflxljflx Posts: 4,662
    The guy sounds like an idiot. Everyone is worrying about an overheated economy causing inflation and this guy is wondering why people are buying cars?? Does he even realize that Nadsaq, the Dow and the S&P are at the highest levels they've been at in 4 years?
  • I'm surely not an accountant but, if anyone wanted to compare two companies wouldn't analyzing cash flow give a much more unbiased report? Or, is EBITA the same as cash flow?
  • ljflxljflx Posts: 4,662
    No. Reason being is that nothing is equal in life. You can milk cash flow by not investing in the future. So if you go that route and look better in cash flow then another company that is investing than you are selling yourself short long-term. If you can get at it - the ultimate measure is cash flow from operations and that would exclude R&D costs. Ebita is not true cash flow as you can have both rising Ebita and rising receivables, meaning you are not seeing the cash (yet).

    If Toyota is saying their operating income was hindered a tad because of heavy r&d, it simply means they are being very conservative in their bookkeeping. They probably could have capitalized those costs and chose not to because of several reasons. Most likely they felt the top line growth was more than sufficient and that the stock would not suffer a hiccup - so let's get rid of the costs now. Another reason could be they wanted to be conservative in this day and age of companies improving P&L results by putting future risks in the Balance Sheet. More than likely it was a combo of both and you can bet your life that if the top line growth was absent or too slow, Toyota would have capitalized a lot more R&D costs rather tha write them off at inception. But with headlines everywhere that they are quickening their pace to number 1 global auto maker it is a great time to expense such costs rather than capitalize them into the Baance Sheet. Smart decision as it results on a very minor one time effect on earnings, in a period of solid growth, and during a period where it's stock is the highest priced auto stock in the world - trading at the highest multiple of earnings.
  • deweydewey Posts: 5,243
    Does he even realize that Nadsaq, the Dow and the S&P are at the highest levels they've been at in 4 years?

    So is Purvey an idiot or genius for being worried while stock markets are humming along? In all honesty who knows, not even the Oracle of Omaha makes Index bets! But let us consider the following:

    The Dow Jones was hitting all time highs and the the Great Depression followed!

    The US stock indexes in the early 70s was doing wonderful primaily due to Nifty 50 stocks but was followed by a serious recession.

    And 2001 was a wonderful year to be in Nasdaq stocks and I guess you know the rest.

    OK since I made a promise on a prior post to focus on cars I have provided a link to a article on the luxury car market!

    Any luxury car executive who reads the the trends in the article should be worried!

    Worried You Bet!!!!
  • ljflxljflx Posts: 4,662
    Sorry Dewey - any exec who says hes surprised someone is buying his company's product is an idiot in my book. In a strong global economy he's an even bigger idiot. Stocks are trading at low multiples - your examples don't work in that situation. The S&P and nasdaq are trading at a fraction of the multiples they traded at in bubbles. They are actually too low which is why the rally has a lot of leg left in it.
  • deweydewey Posts: 5,243
    Stocks are trading at low multiples - your examples don't work in that situation. The S&P and nasdaq are trading at a fraction of the multiples they traded at in bubbles. They are actually too low which is why the rally has a lot of leg left in it.

    I dont know what the markets will be in the future? In fact I dont really care! My daily focus is finding good individual stocks with a margin of safety and currently I am having the toughest time in my career finding such equities in the USA and Canada! IMO that to me does not indicate low markets in North America!

    I find your opinions interesting, but I guess we are both here to focus on car opinions.
  • Since when?

    Everyone in the world of car manufacturing knows that higher quality and reliability go hand-in-hand and REDUCE costs.

    For example, rare leather hides mis-sewn into seats are indeed expensive but are a low quality product. It cost a lot to make them poorly, and even more to fix them later. The same is true product line wide, C, E, S, etc.

    Mercedes is in CYA mode as they spend the next decade trying to get anywhere close to Lexus quality and reliability, they are going to be much more friendly in their stores to their 'passionate' customers that spend a lot of time there. Guess where the funding for that 'attitude' change is coming from? Yep, 7% here, 5% there in new car prices.

    They have a huge hill to climb and they are also merchandising themselves far beyond likely performance.

    Clock's ticking, methinks.
  • nvbankernvbanker Posts: 7,285
    Totally agree with you lg. Especially about buying 3 yr old Jags, and not with the rubberband tires, which are impossible to keep going, in my experience.
  • lexusguylexusguy Posts: 6,419
    What distinctive feature? I know the Portfolio has that little side vent (which, by the way, has been on the Range Rover for years) but I havent heard anything else about any kind of major styling changes, or any changes at all to the X, S, or XJ. I do like the new XK quite a bit, and I definitely plan to take a long look at a '07... in '10.
  • oacoac Posts: 1,594
    Mercedes is in CYA mode as they spend the next decade trying to get anywhere close to Lexus quality and reliability....

    They have a huge hill to climb and they are also merchandising themselves far beyond likely performance.

    Clock's ticking, methinks.


    Sssssshhhhhh !!!!! Be careful here...Before long you'd be accused of predicting MB's demise at a time they are undergoing a resurgence and revival in fortunes... Ticking clock on MB's watch ???? Forgetaboutit....

    Time is an enemy sometimes....
  • tagmantagman Malibu, CaliforniaPosts: 8,441
    So, Mercedes sells more cars with poor quality because they have a HISTORY of selling great cars. Jaguar, on the other hand, struggles to get past the old reputation of unreliable cars, yet their cars today, on average, are more reliable than Mercedes, by a significant margin!!! Mercedes is fortunate to have that history, even if the cars it builds today have problems, because it gives them another chance to meet customers EXPECTATIONS. Jaguar, in contrast, is slowly overcoming a big hurdle. I really hope they pull it off. Their cars are freakin' gorgeous compared to Mercedes or just about anything for that matter.
  • lexusguylexusguy Posts: 6,419
    It takes a lot more than good looks to succeed in a brutal marketplace. The X-type is attractive, but its a lousy car. The public was not fooled into thinking that it is a "real" Jag. Ford is abandoning the plan to have Jag be a volume luxury car maker, and they are moving Volvo up into that space. They now want to position Jag against Bentley.. risky move.
  • sysweisyswei Posts: 1,804
    NEW DELHI -- The chairman of Toyota Motor Corp. Monday said companies in India and Thailand may soon overtake those in Japan because of their increasing focus on quality.

    "Thai and Indian companies are fast catching up. My fear is that Japan will soon be overcome by Thai and Indian companies," said Okuda Hiroshi...

    ...Indian firms are improving their standards. "I am aware of the excellent quality levels of Indian IT [information technology] and manufacturing companies. But, in the field of quality, Japan is standing still," said Mr. Hiroshi at an industry meeting.

    He said no Japanese company has recently won the Deming Prize, an award from the Union of Japanese Scientists and Engineers. Indian companies such as motorcycle and scooter maker TVS Motor Co. and Rane TRW Steering Systems Ltd. have won the prize.


    source WSJ online
Sign In or Register to comment.