I don't understand the logic of building new cars when the auto inventory is so high. Plus parking lots full of slightly used cars back from rental, and no buyers at whole sale auto auctions
The only thing I can think of is the auto industry took big bail out funds and what forgivable loans if they keep the workes on the job or paid if they stay home sick, or anything to quailify for forgivable loans
I can't see where more autos is the answer. That;s almost likee china building ghost cities. Workers keep working but this is not in any way contributing to a healthy economy. At least we could pay the workers tto stay home like so many others and not use resoarces to build unwanted autos
There will be 1000's of auto going for scrap. that are slightly used. Not many new autos are being sold,
This just seems wrong, and the debt gets bigger as we pay for material to build autos and then scrap them.
Want to bet the auto industry gets paid to scrap autos???
Debt, debt and more debt
War IS the answer
Blow them up
Over and over
Taxpayers will pay for it all
The auto industry has too many cars parked in staduims and shopping malls
Hertz is offering corvettes with 20,000 miles for an average of 61,000 in Auto Trader
Blue Book value is 80,000 with dealers asking price of 90,000
Don't rush out just yet to pick up a cheap used car as Avis and Enterprize are also trying to avoid Bk or build up cash to make a deal on lease payments
Obviously nobody is renting cars so with no revenue, some thing has to happen with a surplus of almost new cars
We bought a rental car, [12,000 miles straight off the internet of dealership inventory] kept it 10 yrs and was a best buy for us, almost ever. We drove that car all over the USA on many vacation trips and the only issue was the altinator, had a different sound, so we swapped it out for a new one, down by Brownsville Texas. We did usual oil, brakes, tires and a tie rod, back home.
Only thing better would be brand new and that costs a lot more for 20,000 miles
I doubt my wife wants a corvette
No matter I just finished new crop corn sales and the money will be a bit skinny next yr.
Planting corn today and have two farms left that are still a bit too wet. Rain drops on the wind shield earlier today but maybe that is all we get.
Sprayer has started work. just one thing after another until December some time. Turned down 400 acres of custom as we don't have insurance for custom. Too bad, we needed the income
Maybe if a cheaper car comes along, might think about it, once we see how the crop looks.
We won't be getting any part of the recent USDA 16 billion assistance tax payer money, while bar tenders get zippo. Wonder who needs it the most. Grain farmers will get a bundle off this one. Livestock guys won't meet expenses even with assistance. Who figured out this plan??? You can store grain, not livestock. Livestock industry is going behind 500,000 plus head per week. That is how much will end up in a hole in the ground, every week, with empty meat shelves.
there are many things that do not make sense in this world. Why is Tesla the most valued car company and they have never made a profit.
TSLA made a profit of
2.90 3rd quarter 2018
1.93 4th qt 2018
1.86 3rd qt 2019
2.06 4th qt 2019
1.14 1st qt 2020
Did you know a canadian bank called CIBC made it's 1st dividend payment in 1868 and has not missed a single qtrly payment since, which is over 100 yrs.
The bank currently pays approx. 50 % of earnings as dividends, which works out to approx. 5 % or better, depending on cost of purchasing stk. The bank always quotes int rate as of current stk value in CAD funds. The bank has some exposure in the USA market
We are waiting to see what happens with the current pandemic situation, but will most likely buy CIBC stk. We think CIBC is one of the top ten buy and hold stks. with a steady dividend income stream which is important to us at our age. We also have a stk that always pays a dividend, which we use to buy more stk.. I suppose that will be part of our estate, unless corn price falls off a cliff. [I have enough new crop sold to pay the bills]
I guess people like Carl Ichan are used to buying winners and losers, but I bet even Carl isn't to happy losing his 39 % stake in Hertz rental car biz. He will be lucky to be getting pennies on the dollar, when Hertz has to liquidate some 500,000 plus cars at auction, with lease payments past and future having a claim, on liquidation sales, ahead of stk holders. My info is Hertz will sell 30,000/month which will take a long time to liquidate 500,000. Those high value corvettes in my previous post must have been the 1st to appear on the market. Stks can be your friend if you are careful and maybe a bit lucky
I follow Tim's posts as he has a lot of good info. I expect to see some blood in the streets coming, just don't know when
while it is true that tesla made a short term profit. it has Never made an annual profit. which means the loss it had in some quarters was more then the profit it made in the other quarters within the same year, yet this stock continues to go up and is worth more then most other car companies.