Rates are crashing and fuel to the moon!

They will change business model and make more affordable vehicles.

 

The EPA has made doing business in the States challenging or downright impossible for many businesses.

 

Doesn't mean they're operating at a loss either. Most likely just not making as high a profit as they were before the price drop.

 

Pilot is now offering 90 days of free factoring, so no need to worry about fates or fuel for 90 days guys.

 

I guess maybe the rest should try to negotiate a pay raise, instead of whine about others making more. Inflation without any pay raises is bad. Would you like to cite where the 35% cost of Labor for everything? Economics has always interested me. I do f claim to be an expert. Don’t even claim to reliant on a quick google search for facts either. Only have my opinions based on my experiences. No desire to change yours. Google can do that easily.

 

The auto business has always been risky. The history is very interesting. Very hard to understand. It’s always cyclical. It’s also dependent on the overall economy. First thing people postpone buying is a new car, second is durable goods. They’re constantly reacting to circumstances as fast as possible. Fastest way to cut costs is to Layoff Workers. Getting Laid off is part of the job. Before Just in time, inventory was almost always too high the first 6 months of the year. Common practice was to over build, since you can’t make anything without product. They almost always had too much product. Discount incentives were rolled out, to dump leftover vehicles, Layoffs were typical, usually from March till August, after the model/tooling change over. All three did it every year. New employees could expect to be laid off every year for the first 5, maybe 7 years. A lot depended on expectations and uncertainty in vehicle popularity. They all copy one another’s designs. Still do. Each has a certain model to compete in each segment. Sometimes they call it right. Sometimes they hit it big with certain models. During down times they compete for existing Market Share for survival and future Brand Loyalty. There’s so much in play that no single aspect can really be completely to blame. Too many unknowns. Unfortunately when times get tough, choices get narrower. Basic transportation, no frills becomes more popular and affordable for everyone. When times are good, new models, more choices are available to entice people to trade up, before it’s really needed. If people can’t afford it, they won’t offer it, you get leftover platforms with slightly cosmetic changes like in the late 70’s. When the markets demand is high, a typical platform may be changed every 3-4 years, in an attempt to entice buyers and sell new vehicles, when they’re really not yet needed. The Consumer has more choices. It depends on the overall economy. Profit losses are always going to happen, any year following a record sales year will have losses. Losses are compared to last years Revenues. Doesn’t mean they’re going under. They still make profits. Things get adjusted to meet Market Demand. Suppliers get squeezed, Workers take pay cuts, or face Layoffs. Been running auto parts all this week at my new job. Everything runs steady. Back in, get loaded/unloaded. Haven’t ran into one single problem. Everyone does their job like an adult. I forgot how easy a normal job is compared to OTR. I can hardly fall asleep at night. I’m up now doing fuel taxes for the last time. Going on 22 hrs. Might have to start exercising after work, just to be able to fall asleep every night. I think it’s going to work out well. Look for deals soon. Cars will sell. They always do. One way or another. FCA/Chrysler will probably change hands again. With or without a bankruptcy. Jeep and Ram will probably be sold separately. Ford will probably gain Market share, but still be in deep debt. Possibly becoming #1, bearing GM. Compared to Europeans, American auto workers Labor costs are a bargain for Companies. That’s why they’re investing here. That’s why FCA/Chrysler settled first, even though they’re the weakest Player. US Auto Industry isn’t going anywhere. Their biggest problem is being short sighted, spending only 2/3 on R&D than others. That’s to satisfy investors. The % of R&D has increased since /989, but still well below others. Jeep has a great product. It’s a bargain compared to a BMW. Sure quality is less. You get what you pay for. Less safety mandated requirements also in the US Market. Price a caliper for each. Ask yourself if it’s worth it. Do you need 6 piston calipers? Only 4 times the price of a US built 2 piston caliper. Don’t forget about Labor costs on a BMW. Not such a bargain if you ask me. No shortage of sales at BMW. It’s a trade off. Funny thing is ZF, formerly TRW makes the same 8 speed Transmission for US and European vehicles. Including BMW. Ford and Honda, still make they’re Own. Allison still makes their own. The rest are just the same parts made by the same Companies.

 

But they both like guys

 

Been working with this individual broker for quite a while. Very good paying loads and steady. Did a load for him over thanksgiving and he asked me my rate, told him, “no change.” Gave me a $300 bonus and bought me breakfast at the Petro. Never had to do such a thing. Just a really great guy not all, brokers are evil.

 

I've become friends with a broker over the years. The system is very adversarial in many ways simply by it's design so it's good to not take things personally. The best players in the spot market game fully understand ebbs and flows are inevitable so relationships can be very valuable if your hand is played well.

 

You need to lay off the Redbulls.