Impact of Hearings and Bailout on SVT
12-06-2008, 08:26 PM
#1
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Join Date: Dec 2008
Location: Florida
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Impact of Hearings and Bailout on SVT
I have been watching the Congressional Hearings and how involved the Government is going to be in "managing" Ford and the others going forward. What impact do you think all of this is going to have on SVT and do you think that Ford will continue to build the GT 500 much longer. I have a feeling that they will not be building many more high performance gas guzzling cars as it will not be politically correct and would demonstrate to Congresss that they still "just don't get it".
Steve
Steve
12-06-2008, 09:18 PM
#2
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I am only basing this on my personal opinions, but I don't think the bigger engine, muscle car flavour automotive production will continue much longer. The economy will dictate the models produced, just like it did back in the 70's.
I wanted my GT500 for me. I didn't buy it for an investment. If the bottom fell out tomorrow.....at least I can surely move down the road when I need to....
I wanted my GT500 for me. I didn't buy it for an investment. If the bottom fell out tomorrow.....at least I can surely move down the road when I need to....
12-06-2008, 10:46 PM
#3
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I cant agree more with Shella ^^^.....We are in a recession bordering a depression should these companies go bankrupt and subsequently the suppliers for the Big 3. Now I think the government should give some money to the people so they can afford to buy the new "greener" cars of the future. It doesn't make sense to me to continue making a surplus of cars just sitting and getting older waiting for someone to buy them. I hope this bailout is not just a bandaid.... to slow the inevitable...which maybe be bankruptcy. I hope not but time will tell.
12-07-2008, 02:09 AM
#4
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I mentioned this in another thread, but yes, I think they need the loans but I think they need to concentrate on affordable, efficient cars. I don't know if the GT500 is profitable. I've heard that they are sitting on the lots while the little Focuses are selling well.
Funny what a difference a year can make! The dealers had all those outrageous markups on the GT500 when times were great and where did all that money go?
And the ironic thing is that I just paid $1.83/ gallon! I don't think it's been that low for the entire time I'm owned my GT! At least here in Calif.
Do any old timers know how gas prices behaved during the 70's and the recession then? (sorry I'm old too but I was only in elementary school!)
I don't remember prices ever falling so far that it is now cheaper for me to drive to San Fransisco, Tucson, Vegas, or anywhere I can go in one day than to fly. I filled up for under $25!
Funny what a difference a year can make! The dealers had all those outrageous markups on the GT500 when times were great and where did all that money go?
And the ironic thing is that I just paid $1.83/ gallon! I don't think it's been that low for the entire time I'm owned my GT! At least here in Calif.
Do any old timers know how gas prices behaved during the 70's and the recession then? (sorry I'm old too but I was only in elementary school!)
I don't remember prices ever falling so far that it is now cheaper for me to drive to San Fransisco, Tucson, Vegas, or anywhere I can go in one day than to fly. I filled up for under $25!
12-07-2008, 07:45 AM
#5
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Quote
"Funny what a difference a year can make! The dealers had all those outrageous markups on the GT500 when times were great and where did all that money go?"
.................................................. .................................................. .
I wanted a GT 500 since the day they came out and tried to buy one but everyone was wanting $15,000 to $20,000 above sticker. I bought a 2009 Friday for invoice cost of $43,045, sticker was $46,965 and they even delivered it for free. They only made the 2% holdback on the car, around $900
Right now is the time to buy stocks, aircraft, and sports cars. I sold my single engine Citabria in July before the bottom fell out of the light aircraft market, but right now the only aircraft that are selling are at rock bottom prices from years ago.
I agree with you guys that production will end soon on the GT 500 and as soon as that announcement is made the remaining inventory will suddenly be worth a lot more and I think you will see the prices start back up on these cars. A couple of years from now they will be worth more than they are now.
I also bought mine because I love it and waited three years to get it so I am going to enjoy the heck out of it.
This recession is not going to last forever and buyers will be coming back in to the market for homes, aircraft and sports cars. Right now is the time to buy not later.
PS: Forgot to add, Talking about gas prices... I was paying $6.50/gal for 100 LL for my plane and I just filled up yesterday with premium here for 1.80.
Steve
"Funny what a difference a year can make! The dealers had all those outrageous markups on the GT500 when times were great and where did all that money go?"
.................................................. .................................................. .
I wanted a GT 500 since the day they came out and tried to buy one but everyone was wanting $15,000 to $20,000 above sticker. I bought a 2009 Friday for invoice cost of $43,045, sticker was $46,965 and they even delivered it for free. They only made the 2% holdback on the car, around $900
Right now is the time to buy stocks, aircraft, and sports cars. I sold my single engine Citabria in July before the bottom fell out of the light aircraft market, but right now the only aircraft that are selling are at rock bottom prices from years ago.
I agree with you guys that production will end soon on the GT 500 and as soon as that announcement is made the remaining inventory will suddenly be worth a lot more and I think you will see the prices start back up on these cars. A couple of years from now they will be worth more than they are now.
I also bought mine because I love it and waited three years to get it so I am going to enjoy the heck out of it.
This recession is not going to last forever and buyers will be coming back in to the market for homes, aircraft and sports cars. Right now is the time to buy not later.
PS: Forgot to add, Talking about gas prices... I was paying $6.50/gal for 100 LL for my plane and I just filled up yesterday with premium here for 1.80.
Steve
Last edited by FlaCobra; 12-07-2008 at 08:02 AM.
12-07-2008, 10:07 AM
#6
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If you check back into the proceedings you should take note of a few things. First...Ford said that they did not need the bail out money, unless GMC actually went out of business. The Ford CEO said that they believe by 2010 they will be making a profit. And that the CEO has agreed to drop his salary to $1 a year until they make profit. Ford makes a nice profit off of every car they make, or they wouldn't sell them. The dealership might have made $900, but Ford itself made a lot more. Also note that the bailout money is for non-voting stocks. Some have been saying that the US Govt should tell the Big 3 what to do, but as of yet they are not going to.
With all that being said, SVT might disappear for a while or might not...but it will return. They are already talking about a twin-turbo eco-boost V6 producing over 300hp. You don't think they'll get SVT on that? Horsepower with fuel economy....Also considering that gas is less than $2 a gallon and still dropping. They think it might hit as low as $1. The government has authorized off shore drilling for oil so that the US can supply its own crude oil. I think that SVT will still have a future as long as guys like us are willing to buy their vehicles...
With all that being said, SVT might disappear for a while or might not...but it will return. They are already talking about a twin-turbo eco-boost V6 producing over 300hp. You don't think they'll get SVT on that? Horsepower with fuel economy....Also considering that gas is less than $2 a gallon and still dropping. They think it might hit as low as $1. The government has authorized off shore drilling for oil so that the US can supply its own crude oil. I think that SVT will still have a future as long as guys like us are willing to buy their vehicles...
12-07-2008, 10:48 AM
#7
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things are slower then ever...but the market will turn around!!! and i think SVT will take a short hiatus and come back strong again...but this was a good time for me 2 buy my first house now lets get this market jump started so i can make some profit off it!
12-07-2008, 12:11 PM
#8
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A very worthy read:
http://www.marketwatch.com/news/stor...43270993C21%7D
"Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year -- as a sign of his confidence in the company's transformation plan and future.
Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009."
http://www.marketwatch.com/news/stor...43270993C21%7D
"Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year -- as a sign of his confidence in the company's transformation plan and future.
Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009."
12-07-2008, 05:47 PM
#9
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My friend Eric De Donker who has been winning the GT4 Cup in Europe again this year on a FR500C will not received a red Cent from Ford and no car for the 09 season.
This is BS...
Ford is not that broke!!
Anyway, if he can't find enough sponsors in Europe, there will be no winning Mustang in that class next year. (One week end cost about $60K, ouch!)
So Aston Martin or Maserati will have an easy shot at it.
Sad...
This is BS...
Ford is not that broke!!
Anyway, if he can't find enough sponsors in Europe, there will be no winning Mustang in that class next year. (One week end cost about $60K, ouch!)
So Aston Martin or Maserati will have an easy shot at it.
Sad...
Last edited by pascal; 10-04-2009 at 05:09 PM.
12-07-2008, 08:57 PM
#10
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That is bad, Pascal. I would hate to see Ford pull out completely in the European races. We need to support their efforts here in the states. The Miller Challenge Cup Races are awesome to watch to anyone that has never been. I could watch every single one of them. The cars are great, and it is so much fun.