2008 Mazda MX-5 GT Review

How can this car be profitable? These days, manufacturers are merging and using the good old badge engineering method to produce vehicles that have a different name, bumper and grille, but are otherwise the same. This practice is for reducing development costs and maximizing profits, because carmakers are supposedly facing tough times.

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2008 Mazda MX-5 GT Review

How can this car be profitable? These days, manufacturers are merging and using the good old badge engineering method to produce vehicles that have a different name, bumper and grille, but are otherwise the same. This practice is for reducing development costs and maximizing profits, because carmakers are supposedly facing tough times.

Read more

2008 Mazda MX-5 GT Review

How can this car be profitable? These days, manufacturers are merging and using the good old badge engineering method to produce vehicles that have a different name, bumper and grille, but are otherwise the same. This practice is for reducing development costs and maximizing profits, because carmakers are supposedly facing tough times.

Read more

GM posts huge 3rd-quarter loss, no merger with Chrysler for now

Unsurprisingly, things aren’t getting better for the Big Three. Yesterday, GM announced a 2.5-billion net loss for the 3rd quarter of 2008 alone. In the United States, the company sold 828,000 vehicles versus 1,047,000 during the same period in 2007; that’s a 21% drop. In October alone, GM sales plunged 45%, and if the current trend continues, it will run out of money before the end of the year.

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October Auto Sales Screech to a Halt

October Auto Sales Screech to a Halt
2008 October Auto Sales - Car Sales Analysis - Automobile Magazine
Of course, the Wall Street meltdown and attendant consumer credit freeze – not to mention tens of thousands of pink slips handed down in October – didn’t just affect GM, or the domestic auto makers.

“You can’t have an automobile industry without a functioning credit market.” So said GM chief sales analyst Michael DiGiovanni, on Bloomberg radio. “This is an industry that runs on credit.” That’s been the case ever since the 1920s, when GMAC, one of the first automaker-owned financing companies, began to popularize the idea of buying a car “on time”. Now, ironically, a dramatically weakened GMAC (which has suffered billions in losses on subprime home loans as well as losses from over-optimistic residual values on returning off-lease vehicles) is a significant factor in dragging down GM sales. GMAC followed Chrysler‘s captive financing arm by quitting the automotive lease market, and in October began restricting auto loans to only those customers with top credit scores (shutting out roughly 2 out of 3 buyers).

Photo Gallery: 2008 October Auto Sales – Car Sales Analysis – Automobile Magazine

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