Having spent the most of any Banking classes in chennai of the other foreign manufacturers on R and D projects, Honda looks to surpass the efforts of BMW, DaimlerChysler and Ford in all categories of the newest Hydrogen Cell cars of the future. Meanwhile the race continues to sell as many cars possible and amass as much money as possible at all costs from nearly giving cars away on credit with free hamburgers to pay back in the future. All the domestics are hard set on displacing the foreign manufacturers for good or buying them on the cheap in the case of a total collapse of the Japanese economy if the bad loans are realized for what they are under the current political structure which would not only hurt auto manufacturers but also cause heads to roll in banking, securities and government. In 2005 the foreign automakers with their environmentally clean cars are out pacing domestics in those categories presently due to fuel prices. They will out run any bad debts on auto loan fallout rates as the economy is back and people have jobs, the unemployment rate is extremely low in the United States now.
Likewise in the US if domestics are forced to raise prices as consumer fail to repay loans and re-marketers sell 1-2 year old cars on the cheap next to the over inflated prices of new models, we may see a glut three times as big as that of the used car dealerships, as we saw some of this right after 9-11 and some at the time were worried that with no possible option of using financing incentives to bail them out things might get tough, that did not happen and the industry ended up saving our economy in robust sales. If this did take place during a period of slight inflation and fallouts in other financial areas such as credit cards and new homes which were purchased on 2-10% down we could have seen a grouped of upside down consumers with nothing in the way of net worth to make them worthy of a new car and auto prices through the roof to cover bad debts. It would have been a disaster waiting to happen, luckily the Fed Acted properly and the tax cuts kicked in fueling small business investment. One thing is for sure there will be so many cars on the road you will spend 1-2 hours a day in traffic and that means a lot of dirty cars out there for my company to wash? CarWashGuys.com
- premmathan's blog
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