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Comments

  • bristol2bristol2 Member Posts: 736
    Does anyone know if the Chrysler sales includes the Jeep division?

    I assume it does, just not sure.

    I imagine MB is delighted to be offloading such status draining vehicles as the Dodge Ram, actually I guess the whole Dodge line-up, and all of Chrysler with the exception of the 300.
  • deweydewey Member Posts: 5,251
    keep asking myself, "who would be a logical buyer for Chrysler at this point in time?"

    Magna a Canadian auto supplier seems to be very interested in Chrysler for the same reasons that Porsche is interested in VW.

    The reason has to do with strategy. Both Porsche and Magna want to prevent any threats to their existing businesses.

    Porsche wants to pre-empt a takeover of VW by another firm since such a takeover could ruin its plans to rely on VW platorms and technology for future Porsches. Similarily Magna wants to takeover Chrysler to pre-empt losing its biggest customer.

    Personally I think Magna will get burnt. Once Magna becomes the sole supplier of Chyrsler other auto firms will discontinue using Magna as their supplier. And God-forbid if Magna uses a private equity firm as a partner in such a take-over. In that case the private equity firm will try to squeeze Magna in supplying Chrysler parts at such ruthlessly low prices that they could be detrimental to Magna's auto supply business.
  • deweydewey Member Posts: 5,251
    Bristol,

    based on everything I read so far Jeep will be sold with Chrysler.
  • bristol2bristol2 Member Posts: 736
    Interesting for a parts company to buy a car company to ensure their parts business.

    Seems like their strategy consultants may not be the best in the business.
  • tagmantagman Member Posts: 8,441
    Well, Dewey, you did answer my question, "who would be a logical buyer for Chrysler at this point in time?"

    Magna may be a logical buyer, but is there so much of a risk to them that if they don't buy that their supply of parts to Chrysler would somehow be disrupted? I would think the new buyer would continue to use Magna. Wouldn't it make sense to just leave the Magna connection just as it is? Or is Magna looking to dramatically increase the level of supplied parts?... and is that even possible?

    TagMan
  • ljflxljflx Member Posts: 4,690
    Tag,

    What's interesting is Dieter road to the top on the company that is now floundeing so badly. One has to wonder how good a job he really did there given the business has fallen so far so fast.
  • tagmantagman Member Posts: 8,441
    In defense of Dr. Z, it is no coincidence that all three domestic manufacturers have been suffering at the same time. The problem out there is bigger than Chrysler alone. Somehow, they have all been caught with their fingers removed from the pulse of the consuming market. The rise in gasoline prices was just one of the obvious problems... and it is pathetic that they scratch their heads and wonder why Toyota Motor Corp. is so successful.

    We could go on and on about this, but there are other forums for this debate about the problems with GM, Ford, and Chrysler. Personally, I hope they have learned a lesson this time around. We'll see.

    Here is the latest (as of this moment) on the situation with the sale of Chrysler...

    Billionaire investor Kirk Kerkorian's Tracinda Corporation said it has sent a letter to DaimlerChryslerAG offering to buy the troubled Chrysler Group for 4.5 bln usd in cash.

    The link:

    link title

    TagMan
  • deweydewey Member Posts: 5,251
    Wouldn't it make sense to just leave the Magna connection just as it is?

    Or is Magna looking to dramatically increase the level of supplied parts?... and is that even possible?

    Yes to both questions. But higher volume sales at what cost? If Magna becomes an equity partner with Kerkorian's Tracinda firm then Kerkorian is going to have too much bargaining leverage power over Magna. Not only will Magna be a major supplier to Chyrler but they will also have a big chunk of equity in Chrylser. Magna will have too much at stake and may be forced to sell auto parts at a loss just for the sake of saving their investment in Chrysler.

    Definitely a lose-lose situation for Magna.
  • tagmantagman Member Posts: 8,441
    NOT HYBRID!!!

    The 2007 World Green Car Award goes to the Mercedes E320 BlueTec DIESEL!!!!!!!!!!!!!!!!!!!

    Gentlemen: Start you engines...

    The REAL competition between hybrid and diesel has just begun. I believe that the 2008 model year will be the onset of the U.S. diesel revolution, as a result of the advanced diesel evolution. I am expecting huge percentage sales increases for diesel-powered vehicles next year. As I've posted before, not only will the very nature of these engines be convincing, but the marketing will be big, and the EPA itself will help the diesels with their superior mpg ratings, while at the same time the EPA will show worse mpg results for the hybrids by as much as 30%.

    We are getting closer and closer. Congratulations to the Mercedes Benz E320 BlueTec Diesel!!... Winner of the 2007 World Green Car Award!!

    TagMan
  • esfesf Member Posts: 1,020
    Thanks. We love it.

    The only drawback is, we probably won't be able to get a new car until next year!

    As if that's a "drawback..."

    ;)

    '06 Audi A3 2.0T DSG • '05 Audi S4 Cabriolet • '04 Lexus RX330
  • esfesf Member Posts: 1,020
    tagman only mentioned the "green" car of the year...

    Did you all know that the LS460 won? I wasn't too surprised. It's a good car. It's just that IMO the TT is more interesting.

    Audi went home with two trophies: RS4 was performance COTY, and TT was still design OTY.

    '06 Audi A3 2.0T DSG • '05 Audi S4 Cabriolet • '04 Lexus RX330
  • tagmantagman Member Posts: 8,441
    tagman only mentioned the "green" car of the year...

    Did you all know that the LS460 won?


    Yes, I mentioned that the 2007 World Green Car Award went to the Mercedes E320 BlueTec Diesel.

    The Doc posted about the LS600hL, which won World Car Award, on the HELC forum.

    And I reminded him that even though that LS600hL is a hybrid, it did not win the "Greenie" award!!

    TagMan
  • deweydewey Member Posts: 5,251
    The MB E320 Blutec is a great car indeed.

    The newest news from BMW consists of two things.

    1) A diesel twin turbo for next year.
    2) They will introduce 30 new models within the next three years .

    link title

    BMW plans to expand its diesel line in the U.S.

    David Shepardson / Detroit News Washington Bureau

    NEW YORK -- BMW said today it would build its new 2008 X6 crossover at its South Carolina plant and bring a twin-turbo diesel to the U.S. market in 2008, part of a growing push to expand diesels in the United States.

    BMW also said it will increase its capacity of its South Carolina plant from 140,000 to 200,000 units in the next few years.

    The company unveiled its new 5 series here at the New York Auto Show.

    It has renamed its 525i sedan the 528i and given it 230 horsepower and 200 pounds of torque with updated six-cylinder engines. The new vehicles have more leather, larger door pockets, additional storage space and a lane departure system that vibrates the steering wheel if a driver changes lanes without using the turn signal. It also showed a picture of a Sport Activity Coupe concept that combines all-wheel drive and off-road capability with a coupe-like design.

    BMW's U.S. chairman and CEO Tom Purves said the company would introduce 30 new models by 2010 and between 2005 and 2009, BMW worldwide is investing $25 billion in expanding its business activities. In 2006, the company invested $3.3 billion -- or about 5 percent of its revenue -- in research and development.

    Since 1996, the company has invested $3 billion in its Spartanburg, S.C. facility, while its U.S. suppliers have invested another $2 billion. BMW builds its X5 and Z4 Roadster and coupe only at its U.S. plant and exports them to 120 markets worldwide. It is the leading U.S. exporter to non-NAFTA markets.

    The company is also making a $100 million expansion to its Woodcliff Lake, N.J. headquarters -- adding 220,000 square feet of engineering, office and training space.

    BMW's new Valvetronic variable-valve control system in its 3 and 5 series delivers up to 17 percent greater power with up to 10 percent better fuel economy, the company said. Between 1990 and 2005, its miles per gallon increased more than 22 percent for its car fleet, in part by using lighter weight magnesium engines to improve fuel economy as well as lighter weight materials throughout.

    "People want performance but not at any price," Purves said. "They also want to be able to tell their friends at tennis that their new BMW also gets better fuel economy."

    For BMW, 2006 marked the company's 15th consecutive year of U.S. sales increases.
  • tagmantagman Member Posts: 8,441
    Dewey - Thank God that BMW, like Mercedes, will be a big player in this upcoming diesel revolution that will begin very soon on this continent. If you think hybrids made a big splash, wait until you see what these diesels will do! It's going to be nothing short of amazing. And very soon, my friend.

    TagMan
  • 2001gs4302001gs430 Member Posts: 767
    The Doc posted about the LS600hL, which won World Car Award, on the HELC forum.

    And I reminded him that even though that LS600hL is a hybrid, it did not win the "Greenie" award!!


    Tagman, the LS600hL did not win any prizes yet. I don't think it was even on the list of the contenders. Maybe next year?
    It was the LS460 that won the World Car Award.
  • 2001gs4302001gs430 Member Posts: 767
    Beautiful pool and nice car Lj. Congrat.
  • tagmantagman Member Posts: 8,441
    Thanks for the clarification!! Yes, maybe next year.
  • houdini1houdini1 Member Posts: 8,327
    Simply gorgeous pool and grounds. Thanks for sharing.

    2013 LX 570 2016 LS 460

  • houdini1houdini1 Member Posts: 8,327
    OK. Every thing went well and we had a great time. Spent almost 9 hours at Augusta National on Monday. Walked the entire course a couple of times to get the feel, etc. Saw Tiger, and many others up close and personal. There were some 45,000 people there on Monday!

    Played golf Tuesday and Wednesday. Did not break 80 either day. Great weather all three days.

    Augusta National is everything I thought it would be. No disappointments at all there. The city of Augusta is a different matter. Lots of seedy looking pawn shops and used car dealers etc. I think the average salary in Augusta is around $25,000. Many, many run down houses. All of this surrounds Augusta National and was a major shock to me.

    Atlanta was a different matter. Beautiful city with about all you could want. The entire city seems to have been built in a forest. Great restaurants. Good hotels. Friendly people.

    2013 LX 570 2016 LS 460

  • ljflxljflx Member Posts: 4,690
    Thanks Houdini.

    BTW - This G35 might have been the best household move I've ever done. My wife loves it as do I. So if she drives the G I end up with the LS460L. If she takes the LS460L I get the G35. Can't lose - until my son drives more constantly in the fall. Then I'm back to the GX470 - which I like for an SUV but that's about it. At that point I'm going to have to figure something else out. Maybe that new G35 coupe - man that thing is gorgeous.
  • cyclone4cyclone4 Member Posts: 2,302
    I just posted the following info on the LS600 forum:

    The pricing for the new LS600HL was just announced by Lexus today. It starts at $104,000. This is lower than I thought it would be based on recent comments. The big question now is, what does this base price include. It obviously does not include the ottoman seat upgrade which I don't want in the first place. I imagine that it also does not include the advanced pre-collision system. I am also dying to find out the specs on the trunk size without the ottoman seat upgrade, cool box, etc. If anyone knows more info on this, it would be greatly appreciated.
  • tagmantagman Member Posts: 8,441
    Maybe that new G35 coupe - man that thing is gorgeous.
    It sure is! I agree.

    But... by Fall, the majority of '08 models should reveal themselves, and you might be like a kid in a candy store.

    Either way, you couldn't go wrong with that new G35 coupe.

    BTW, have a nice Easter holiday. I'm heading out of here early AM to Maui for a week. Betcha I'll need a vacation when I get back! ;)

    I might slip a few more posts in here or there, but I've got some packing to do.

    TagMan
  • tagmantagman Member Posts: 8,441
    The pricing for the new LS600HL was just announced by Lexus today. It starts at $104,000.

    Well, my prediction was wrong. I truly thought that the lowest base price on that car would be slightly UNDER $100K.

    Well, it's essentially sold out, so I think Lexus is smart to keep it exclusive. The LS600hL may set new standards, but for my money, if I were to get an LS, it would absolutely be the LS460L. No doubt in my mind.

    TagMan
  • ljflxljflx Member Posts: 4,690
    Safe trip Tag and enjoy!

    BTW - saw the S550 in white today. I actually think that's the best color for that car. Had AMG trim and that's the only way I'd buy an S-class now that I've taken the time to focus on the sport trim. Car looked fantastic.
  • ljflxljflx Member Posts: 4,690
    I didn't realize Lexus put this up on the site.

    http://www.lexus.com/fcv/lx.html?s_ocid=30193
  • esfesf Member Posts: 1,020
    I hate correcting, but it's the Infiniti G37 coupe.

    It is beautiful.

    However, sadly enough, I prefer the last-gen G35 coupe. Its lines were more simple and it had a way about it that only cars twice the price could match.

    I'll wait until I see the G37 in person, though, before I make any final judgments.

    '06 Audi A3 2.0T DSG • '05 Audi S4 Cabriolet • '04 Lexus RX330
  • deweydewey Member Posts: 5,251
    I dont know if you can recall a few weeks ago when I struggled with your question on why the heck would VW shareholders sell their stocks to Porsche at a discount?

    The reason? German TakeOver Rules that are not applicable towards Porsche's first 30 percent of VW ownership but the next 70 percent of ownership that Porsche does not yet own. Porsche does not expect anybody to sell VW shares at such a lowball offer and its sole purpose of making such an offer is merely to satisfy German securities regulations. BUT Porshce may end up holding the bag if VW shares tumble and many VW owners are willing to tender their shares. Pity Porsche in that case because then it would end up being a troubled and overleveraged car company.

    Wall Street Journal

    Bragging Rights to a Porsche

    Porsche probably will never draw on its €35 billion ($47 billion) loan, the second-largest ever in Europe, that is part of its unusual maneuver to control Volkswagen. The German sports-car maker will most likely only pay lenders peanuts. Why, then, have five big banks scrambled for the honor -- or headache -- of arranging this? It isn't for a free 911 Carrera, but something more valuable: bragging rights.

    Porsche was forced to arrange the loan. It is about to make an offer for the 70% of Volkswagen stock it doesn't already own. The twist is that Porsche doesn't want the shares. Rather, German takeover rules require investors to make an offer for an entire company once they cross a 30% ownership threshold.

    No one expects any shares to be tendered, since Porsche's offer is 9% below VW's current share price. But regulators won't let it proceed without having the financing lined up. The lenders might have to come up with the money, if VW's share price were to tumble. But that's unlikely. So Porsche will probably never dip into the loan and pay interest. Sure, the banks will get a fee for making the credit available, though this will only be a token amount.

    But the deal will give the five banks arranging it -- ABN Amro, Barclays, Commerzbank, Merrill Lynch and UBS -- something they crave: credit in the industry's "league" tables. Bankers are fixated on these lists, which rank firms by the volume of deals done. And they'll get full credit for Porsche's phantom loan. That will help them woo new clients, argue for bigger bonuses, and buy their 911s.
  • tagmantagman Member Posts: 8,441
    I just picked up a couple of the latest auto rags to read on the plane... one of them has the new G37 coupe on the front, with some sort of blurb inside. Hope it's a good read.

    Well, this is it... I'm packed, and I need a little shut-eye before I get up at the crack of dawn to get this family to the airport... y'know, security and all that takes freakin' forever nowadays to get on the plane. I'm off to Maui for a week. I'll catch up with all of you when I get back. I'll have to give hpowders a nice thought when I sip some of that good Kona coffee.

    You guys ALL have a great Easter!!!!!!!!!! :)

    TagMan :shades:
  • deweydewey Member Posts: 5,251
    Have a good trip.

    I've never been to Hawaii before. You've aroused my caffeine addiction with Kona coffee and I am tempted to make a visit. ;)
  • designmandesignman Member Posts: 2,129
    German TakeOver Rules that are not applicable towards Porsche's first 30 percent of VW ownership but the next 70 percent of ownership that Porsche does not yet own. Porsche does not expect anybody to sell VW shares at such a lowball offer and its sole purpose of making such an offer is merely to satisfy German securities regulations. BUT Porshce may end up holding the bag if VW shares tumble and many VW owners are willing to tender their shares.

    That's what I said the last time we discussed this. Porsche's risk is if VW shares tank before the offer expires at which point they could become majority shareholder in fact, not only in influence as a result of their relationship and combined shares with the government.
  • brightness04brightness04 Member Posts: 3,148
    On page 80 of the latest issue of BMWCCA magazine Roundel:

    "Of course, the typial buyers of the latest 3 series convertibel won't be concerned with pushing the envelope. Instead, it's much more likely that you will encounter them taking freeway ramps at 15mph less than the posted advisory speed. You'll also find them at places such as the online 3 series forums at edmunds.com, agonizing over potential exterior/interior color combinations and/or bragging about their new ride's "powerful V6." In fact, I suspect that this particular BMW woould still sell like hotcakes even if it had the driving dynamics of a Chevrolet Colbalt."

    Ouch!
  • deweydewey Member Posts: 5,251
    "You'll also find them at places such as the online 3 series forums at edmunds.com, agonizing over potential exterior/interior color combinations and/or bragging about their new ride's "powerful V6." "

    And very embarrassing but not for the BMW but for the reviewer's ignorance. A BMW V6 :confuse:

    OUCH!!

    As an experiment someone should try going to a Edmunds BMW forum and mention the words "BMW V6" and I can guarantee you that anyone who tries using those words will be ruthlessly attacked like a carcass among a pack of laughing hyenas.
  • houdini1houdini1 Member Posts: 8,327
    In this particular case I think the reviewer was dissing BMW owners.

    2013 LX 570 2016 LS 460

  • designmandesignman Member Posts: 2,129
    And I think Dewey was dissing the reviewer for ignorance of what it is really like on the 3-series forum.

    I haven't paid too much attention to the Masters this year but it looks like it's playing like a US Open in terms of the scoring. Is it the weather or did they do something to the course? No one is under par. You'd have to guess Tiger will finally get his first come-from-behind major win, as unspectacular as the situation is.
  • houdini1houdini1 Member Posts: 8,327
    The weather should not bother these guys that much. The course is long...7400 yards, but again, they hit the ball a mile. The greens are tough... but I saw where someone had only 20 putts one day.

    What I have noticed is that many players are having trouble from the bunkers. Since this is not a PGA event, the bunkers may be a little different from what they are used to. I don't know if the stats will confirm this or not but they appear to be having trouble there.

    Looks like 7 or 8 players still have a chance to win. I don't think Tiger will get it done this year. Who ever gets hot. 50/50 with Tiger against the field. How is that for a safe prediction. I sound like a weather forcaster!!

    2013 LX 570 2016 LS 460

  • brightness04brightness04 Member Posts: 3,148
    Please re-read what was written. The reviwer was making the point about just how pathetic the snob cachet buyers are. That's why "powerful V6" was in quotation marks.

    Just in case it's not clear, although I already mentioned in my original post, the article is in "Roundel," the BMWCCA publication. Real BMW enthusiasts should know what it is and not assume silly trivias are beyond the commentators for the national BMW car club publication.
  • designmandesignman Member Posts: 2,129
    Brightness, Dewey got it. You don't see anyone in the 3-series forums talking about V6s. That's where the reviewer blew it. He never should have mentioned the Edmunds 3-series forums with that lame comment.
  • brightness04brightness04 Member Posts: 3,148
    Well, given the general knowledge level around here, it would't surprise me if someone did. In fact, a couple people made that mistake a few years ago, and at least one person made that mistake again only a couple weeks ago on ELLSS forum, where 3 series is the arch-type vehicle. I noticed that, but simply filed that under normal forum noise. What's more intriguing, IMHO, is that, a lot more people take the I6 vs. V6 mistake so seriously in thse forums. It's like a kid picking on a classmate for writing down "1+1=3" . . . says more about the limited knowledge base of the show-off than anything else, IMHO.
  • blckislandguyblckislandguy Member Posts: 1,150
    BMW is offerring to pay the first two months payments for leases on '04 used Bimmers. There are two non-exclusive ways to interpret this. One, this ad campaign confirms what Briteness has been telling us: BMWUSA will do anything to move the cars, even if it means subsidizing leases in a soft market. Secondly, one could conclude that they make so much money on these leases, especially the second one where they get a leasor who is so hot to get into a Bimmer that he'll even LEASE a three old car, that they will give some money up front to get the guy into a lease. I wonder if they even have "no doc" leases like the mortgage industry has for homes?

    The second thing I found this weekend in a casual perusal of the used car ads and cars.com is that there is not a lot of difference in price between a used S Class and a used E Class. Sure, you give up a MY year and maybe 10K miles if you want an S Class, but generally speaking, 45K will put you into an '05 S Class or a used '06 E Class. America! What a great country. Just wait a year or so after they come out and you too can drive an S Class for the same price as a new Silverado or Tahoe. This partially explains why a lot of pizza shop operators go home in an S Class.
  • deweydewey Member Posts: 5,251
    There are two non-exclusive ways to interpret this.

    Wrong!

    There is only one single way to interpret the success of BMW leases and that is through their financial statements. And according to the latest one BMW leases are so profitbale they want to expand them. Which proves one thing for BMW: Lease incentives does not necessarily equate to non-profits.
  • ljflxljflx Member Posts: 4,690
    That's called having a glut of cars on hand. You only offer rebates like that when you have a glut situation and you can't or don't want it getting any worse.

    Dewey - BMW's financials seem to only impress you.
  • deweydewey Member Posts: 5,251
    Dewey - BMW's financials seem to only impress you.

    That's because I am the only one who reads them ;)

    You're glut portrayal is inconsistent with the current high resale values of the 3 series. It is inconsistent with their financials. It is inconsistent with what's going on outside in the real world.
  • ljflxljflx Member Posts: 4,690
    I read them. They are hardly impressive.
  • deweydewey Member Posts: 5,251
    What leaves you unimpressed?
  • ljflxljflx Member Posts: 4,690
    You're glut portrayal is inconsistent with the current high resale values of the 3 series.

    I guess that resale value excludes the give away months.
  • ljflxljflx Member Posts: 4,690
    What impresses you?
  • deweydewey Member Posts: 5,251
    I am talking about the stats. I am talking about the high realized values people get from selling their BMWs (I've sold a few of my BMWs myself at pretty good prices).
  • deweydewey Member Posts: 5,251
    BMW free cash flow yields are the second highest in the auto industry (second to Porsche). That is great news if you are a Quandt or a shareholder. They got the strongest balance sheet in the industry. Returns on capital and profit margins have increased. Their lease program is profitbale and successful. They have the strongest auto luxury franchise worldwide. They will be introducing 30 new models within three years. They will be introducing great performing fuel efficient diesels in North America.

    Yes coincidentally I am somewhat impressed!
  • ljflxljflx Member Posts: 4,690
    I just apply sound business. If the cars are so hot and so desirable why the lease subsidies on the front end. Doesn't make any sense. If something is that much in demand you take a big profit the first go round and then you make a second icing on the cake profit on the second go round. Instead they pump a high residual to stay price competitive and make a razor thiin profit on the first go round and then are subsidizing the second go round as well. I find nothing impressive in that business judgment and I see nothing impressive in their financial statements.

    As for the mag article Brightness pointed out all the guy was doing was poking fun at folks who buy stature. Replace BMW's name and the pun on engines with MB, Lexus , Audi or if we were talking cameras put Nikon, Leica or Canon in there instead.
  • ljflxljflx Member Posts: 4,690
    Producing operating cash flow profits and producing real cash profits are two different things. One's techniical, the other one is real.
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