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Buy American?

Discussion in 'BBS Hangout: Debate & Discussion' started by HayesStreet, Jan 21, 2007.

  1. RocketMan Tex

    RocketMan Tex Member

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    If I could find an American car that was as nice, dependable and held it's resale value as much as my Lexus, I'd buy it.
     
  2. Mr. Clutch

    Mr. Clutch Member

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    Yeah, I test drove the new Mustang because all the reviews said it was much improved. But the interior was this cheap plastic crap all over. Also, the dash had a loud rattle.
     
  3. hotballa

    hotballa Contributing Member

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    It's insulting that the same companies who closed relocated off to Mexico would try to push us to buy American. I don't have any loyalties to companies like that. Stay in America, Hire in America, and then you can push the buy American thing.
     
  4. weslinder

    weslinder Member

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    I bought a Chevy truck for my last vehicle. I bought it because it met my transportation needs best. (Most fuel-efficient vehicle that would pull a 5000-lb trailer.) It was assembled in Canada from 60% US-made parts. I read later that engineering was done in Japan by the Isuzu division. I went with a friend to buy a Toyota truck. It was assembled in the United States from approximately 60% US-made parts. In a global economy, protectionist buying practices are mythical at best.
     
  5. Major

    Major Member

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    If a car line is phased out, the resale value of that line drops. You'll see the same effect, though to a lower extent, if the model is revamped with a new exterior design. There's always a chance a company phases out a line, but the fact that Ford and GM are going through serious turmoil and are actively talking about dumping a number of lines makes the risk higher with them.

    But regardless of that part of it, US cars retain less value than their Japanese counterparts. So you're asking people to do something against their economic interests and pay more for the same item (since a car's true cost is its sales price minus current retail value). Given that, you could ask the same about any number of products. Why not just buy US-manufactured clothes? or TVs? or anything else?
     
  6. Blake

    Blake Member

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    Bought American in 2003. (Jeep Grand Cherokee). Car fell apart after 60,000 miles. Went with a Toyota 4runner this time around.
     
  7. rhadamanthus

    rhadamanthus Member

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    Buying "American" is antiquated in a globalized society.
     
  8. tinman

    tinman 999999999
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    Look at Video games. American game systems were horrible (Atari Jaguar).
    then Bill Gates dropped Xbox !

    Let Microsoft take over GM and Ford.
     
  9. rimbaud

    rimbaud Member
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    Man, think about all the deaths that would occur that first year when Microsoft Motors crash repeatedly.
     
  10. F.D. Khan

    F.D. Khan Member

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    The question really goes back to whether its beneficial to the US economy
    in the long run. I'm not really sure it is. With Ford and GM, their issues stem
    from corporate mismanagement. At General Motors, the average individual with a LIFETIME pension worked there only around 20 years.

    That is a huge liability to deal with. They need to learn to manage their organizations better and not expect the American Public to subsidize their lack of foresight by purchasing cars that are not maximizing their utility.

    To really look at who benefits from a purchase of a Ford versus a Toyota or a Mercedes, we need to look at the ownership. These are all large publicly traded companies. Mercedes is Daimler Chrysler Group, and Ford owns part of Mazda, Jaguar, Land Rover and Aston Martin whereas Toyota owns Scion and Lexus. All are owned by us in our 401k's if we have an S&P 500 index or an international index. All three groups have plants and management in the US so all benefit the US economy in that way, so I guess the only way would be to determine the percentage of Americans that own the outstanding shares of Toyota versus Ford. Most shares are held by institutions and mutual funds, so then we would need to determine the mutual funds and who owns those funds as well.

    As you can see this is a complicated question beyond the old tenet of
    "BUY AMERICAN!". To directly benefit the US, buy Treasury Bonds, otherwise
    its not that easy of a question.
     
    #50 F.D. Khan, Jan 22, 2007
    Last edited: Jan 22, 2007
  11. nyquil82

    nyquil82 Member

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    I know I'm never going to buy a truck, so American trucks, which apparently are closer to equal ground with their overseas counterparts doesn't apply to me.

    From what I have test drove, rented or seen from friends, American cars just feel cheap and unresponsive and I will probably never get one unless I can throw away money on a dodge viper or a shelby cobra, but I hope I never get that materialistic. Is it perception? sure, its based on anecdotal evidence, but that's how we make a lot of decisions in our lives, and if American cars fail the perception test and the market tests, how do they expect us to buy their cars?

    My dad had a situation where he really wanted a chrysler crossfire, insisting that it was a German car with an American tag. He hasn't had an American car in his garage in 20 years, and it's been german the last 8. He wanted to trade in an Audi TT, but the dealer was completely inflexible in budging on the price. My dad pulled all the negotiating tactics, saying he's only driven mercedes for 8 years and this was their chance to put an American car in his garage and switch brands. They still didn't budge on the price, even though the crossfire was not selling well. My dad gave up and ended up getting a Mercedes CLK500 for a better price than the crossfire, which had a lower msrp than the benz. He got better service from the dealer and they were willing to give him a better price because he was a long time mercedes buyer. That and he was trading in an audi, making his garage completely mercedes.

    So on the micro side, it seems that American cars in general don't seem willing to make the extra step to be competitve. Sure it was one experience, but from a consumer standpoint, sometimes that's all it takes to create brand disloyalty. It seems that he isn't the only one here who had a bad experience with American cars, and those bad experiences have pushed many in the country to get a Japanese or German one.
     
  12. famicom

    famicom Member

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    They're new marketing logo should be support American Management and not American workers. Seriously there is just something not right going on...

    As far as the German comments I've been hearing in this thread, I can't tell if it's sarcastic or not, but how is their reliability? I was thinking of getting a used 03' Audi A4, but am leaning on getting a new Altima with less options for a couple thousand more.
     
  13. hotballa

    hotballa Contributing Member

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    If you're going to go Japanese, don't get a Nissan, their rep is just as bad IMO. It might be cliche, but you really can't go wrong with a Honda or Toyota. They make some of the best cars quality wise in the world, and I serisouly hate the Japanese with a passion.
     
  14. tigermission1

    tigermission1 Member

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    They HAVE figured it out in terms of product they put out there, the general public is just yet to catch on with their general bias against traditionally American brands.

    What's ailing GM and Ford more than anything else is having to compete at a distinct disadvantage (e.g. the million+ retirees they have to take care of, lack of a national health care in the U.S., unions, etc.)

    GM and Ford are NOT competing on a level field, they're trying to compete while having to deal with being permanently handicapped by their financial responsibilities.

    Moreover, if you compare American vehicles to their much more expensive European counterparts, American cars are hands down better quality/more reliable and much, much cheaper to maintain. Yet, people generally salivate at the prospect of owning a 'Euro' model, which is more of a status thing than being concerned about quality or reliability.

    Overall, I agree with those who say that we should let the free market sort things out...but even those who hold such an opinion have to recognize that this is not a 'fair game' and that's largely to blame for the enormous trade deficits we have.
     
  15. weslinder

    weslinder Member

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    I don't think enough is being made of this. Japanese companies, when they build factories in the US, go out of their way to avoid union strongholds, and typically offer slightly less pay and considerably less benefits. Toyota wanted to build their truck factory in Beaumont because of the port there, but chose San Antonio and it's higher transportation costs to avoid the unions in Beaumont. I don't think this is a sustainable way of doing business, and as the economy improves, and the worker shortage spreads, they will be forced to be more competitive with their workers.
     
  16. vlaurelio

    vlaurelio Member

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    Buy American?

    Support Iraq War
     
  17. tigermission1

    tigermission1 Member

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    :rolleyes:

    What a simplistic way of looking at things.
     
  18. Mr. Clutch

    Mr. Clutch Member

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    I do not agree with the premise that American cars are better. Americans do not make good small cars or sedans. They are completely outclassed in the economy car (Civic, Mazda 3), midsize sedan (Camry, Accord), and entry level luxury car (3 series, g35) segments. They are also losers minivans and hybrids. Reading comparison tests from major car reviewers, American cars regulary come in last.

    Euro models carry status, but they also carry nice interiors, refinement, and great driving dynamics. I agree that they are not as reliable as Japanese models though.

    As far as not being able to compete, what does the trade deficit have to do with it? It has more to do legacy costs and just bad designs.
     
  19. vlaurelio

    vlaurelio Member

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    that was something for our resident chicken hawks/war profiteers on this board
     
  20. Rocket River

    Rocket River Member

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    America still makes the best Trucks Right?

    Rocket RIver
     

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