Competitive and fair vehicle prices coming?

[checking]

I trust that the recent taxpayers support for the auto industry gained the consumer (who is supplying this gift) access to purchasing those vehicles in the US or Mexico. Further; our disproportiate support (3 billion, or whatever it turns out to be, compared to 13 billion, or whatever it really is from the US) looks like it is at least double or higher than our traditional market share with anything else in the US economy.
The Canadian negotiators, decision makers and purse string holders appear personally bankrupt when it comes to creative thinking.

[TOM4CWB]

Checking,

"The Canadian package could amount to several billion dollars, as the governments of Canada and Ontario have said they would provide an amount proportional to the automakers' footprint in Canada, estimated at about 20 percent of North American production capacity."
http://www.bnn.ca/news/5688.html
has the whole article.

GMAC is majority owned by 'Cerberus'... who also bought the majority of Chrysler (79%) from Daimler in 2007.

http://www.bnn.ca/news/5819.html
"The U.S. Treasury Department agreed Monday to buy $5 billion of senior preferred equity in GMAC, using funds from the $700-billion Troubled Asset Relief Program.

The Treasury also agreed to lend GM up to $1 billion to support GMAC. The Treasury financing will result in GM and Cerberus reducing their ownership stakes in GMAC.

On Tuesday, GMAC said it would begin making loans to people with credit scores of 621 or higher, significantly easing a requirement for a 700 score that it had imposed in October."

In general... it appears Canada is doing its 'fair share' of the package.

[TOM4CWB]

Checking;

"GM owns 49 per cent of GMAC, while the rest is owned by private equity firm Cerberus Capital Management.

As part of its order last week approving GMAC's application for bank-holding company status, the Federal Reserve said GM will reduce its stake to less than 10 per cent of the voting and total equity interest of GMAC. Cerberus, which led an investment group that bought a 51 per cent stake in GMAC from the automaker for $14 billion in 2006, will reduce its stake in GMAC to no more than 33 per cent of total equity."
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081230/GMAC_bailout_081230/20081230?hub=World

If I were a "Cerberus Capital Management" shareholder... I would give management the 'gong' award for the worst job possible!

[cottonpicken]

Makes me think of grandaddys bennet buggy stories.

Wait till you see how cheap semis get.

[wilagro]

I'm looking for a new SUV so I hope the prices go down by at least 10 or 15 %.

I'll wait until the end of Jan. and hopefully be able to find something reasonable.

[TOM4CWB]

Wilagro et el,

To be honest... the leaseback returns are where the deep discounts will happen.

If you had a personal relationship with a dealer... they could get you a 2 year old decent machine... for $15K with 50KM on it.

Don't mistake the amount of cash around...

"investors are holding $8.85 trillion in cash, bank deposits, and money-market accounts. This is equal to 74% of the market value of all U.S. companies. According to the Leuthold Group, this is the highest cash-to-market ratio in 18 years."

[checking]

Good points raised by above posters.

Everyone would agree that there will necessarily be major changes in the North American auto industry. That may very well mean that we won't have 20% of production produced here in the future;(as auto bankruptcies unfold; agreements are unilaterally changed and corporate interests make worldwide decisions in their best interests).

It wouldn't suprise me if Canada gets the short end of the stick; both short and longterm.
There's lots reported in the newspapers that is supplied by supposedly very smart business people. There are also significant points of view that are largely ignored; or don't catch hold. One item I remember was that about a year ago; the last of the significant volumn auto makers completed blackmailing their US dealers with the threat of pulling the US dealer's franchise if they even thought of selling a new vehicle to Canadians. That cost Canadian purchasers deeply; and there was even a CBC National report on the Class Action lawsuit that was being organized in Canada. Too bad our politicians don't have a memory; and even sadder that those same politicians wouldn't risk touching that hot potato while it could have had an immediate price saving.
Now was the time to begin to right some past wrongs; when the auto makers want to get their hands even deeper into taxpayer's pockets. There are still significant differences between US and Canadian auto prices; and free trade for cars and chemicals is even more of a joke than ever.

Maybe its just like the railways and the Crow Rate and the agreements that were supposed to last in perpetuity.