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Friday, August 25, 2006


Bill Daly

Mitsubishi went through this a few years with disastrous results. They sold a lot of cars to young kids who could not afford them. It's a desperate, dumb idea.


Who gets screwed?

1. Ford Motor Credit, either by holding about to be worthless paper OR by selling that paper at a deep discount to banks.

2. Ford car owners through resale value when the repossessed cars hit the market in a few years (hell, maybe months if Mr. Recession pays a visit).

3. Ford Motor since the profit from its credit arm has kept the company "profitable".

4. FoMoCo shareholders. See #3. Dividends won't be any big deal either.

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