Today General Motors and Ford were both downgraded by Wall Street analysts to sell. Now they tell us ! The future looks like either bankruptcy or a government- assisted bailout which in either case would leave the existing shares worthless.
The Volkswagen Bug showed up on our shores in the 1950's and the Japanese invasion of cheap, economical- to- run cars joined VW. But GM, Ford and Chrysler didn't take the hint. They continued to build expensive gas guzzlers with high profit margins . They bribed Congress to keep miles-per-gallon requirements at a low threshold and even got the lawmakers to give tax incentives to buyers of trucks and SUVs.
My take on this tactic by Detroit was that the obligations to pay the inflated demands of the United Auto Workers necessitated the high-priced autos. Now this is not the way to meet the public's changing trends toward affordability in transportation choices. Detroit went down the wrong way on a one-way street.
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