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A recession and the C8

Old 11-27-2018, 03:25 PM
  #101  
MatsA
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Not to be a domesday profet but US have a very serious problem with national debt and to much spending on federal and national level, you need to get a budget in balance, the only thing at the moment keeping US economy from capsizing and keeping inflation at bay is the strong dollar, but the dollar will slowly start to loose its status as world currency as more and more countries(BRIC)try to avoid the US banking system for international payments, this will most probably lead to massive inflation for US like the Weimar republic in Germany during the 1920s in the not so distant future 5-15 years.....
I think C8 need a strong US economy to sell good and it must compete with price to foreign supercars, i do not think it can compete on international markets with Porsche, Ferrari, Lamborghini it is simply not as strong in branding, but i do think it as usual will be the most bang for the buck.

Last edited by MatsA; 11-27-2018 at 03:31 PM.
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Old 11-27-2018, 03:35 PM
  #102  
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Originally Posted by ctmccloskey View Post
I totally agree with Glen Quagmire, this thread is a joke!

What will happen to Corvette Prices when California is no longer above water?

I may be old but I still want to see a full time 4 wheel drive Corvette.....

We own several rental homes and have paid them off prior to getting ready to retire. My wife and I invested in these rentals 30 years ago and now that they are paid off we are getting ready to retire and enjoy our Corvettes. We lived frugally and made payments on every house every month. The other day I had a Bolivian woman who was mad at me because I would not rent her one of our houses. She told me that It was "HER RIGHT to have a home" and since mine was unoccupied she expected/demanded that I rent it to her. This new socialist attitude won't get far with me.

God Bless The United States!
Did she meet all your tenant requirements? Since you were so quick to point out her nationality, I suspect some discrimination may have been at play. She may have been letting you know, in her own way, that she met all your requirements and therefore you're not legally allowed to discriminate against her.

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Old 11-27-2018, 05:22 PM
  #103  
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politics are cars should be separate but lets not ignore what happening as is does have effects. I still cant believe the people here in Cali voted to keep the gas tax. Between CAFE standards and taxs on gas its sure making things hard. The deaths and protests in Europe show what is in store for us. They said plan and simple we are raising the taxes to force people into EVs. Now if GM can make a cheap c8 EV with a small battery for 60K I'm in. I just need to look cool and go fast for 50-60 miles..lol
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Old 11-27-2018, 10:21 PM
  #104  
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Originally Posted by fasttoys View Post
The timing of the release is very important, GM has no control over the economy and will focus on what they can control. Unfortunately, they do realize headwinds are ahead & so do many in the ever-changing auto industry. I know GM is adjusting and currently has plans of streamlining the company going into 2019 and beyond. Higher interest rates & tariffs will not only affect the consumers but many corporations that were able to borrow and control cost to keep their business growing. How will this affect the ME or other future projects I don't know. GM had a good 3rd quarter but to understand the source of these profits, one must understand the concept of operating leverage.

Being a capital-intensive business means having a high fixed cost base. A high fixed cost base means owning large factories and expensive equipment, as is true for GM and Ford. Fixed costs are fixed Ė they accrue whether or not the machines are idle or are working three shifts. When demand for the end product is low, revenues slow to a trickle and are unable to cover the cost of the idled machinery. When demand for the end product is high, a high proportion of each dollar of revenues in excess of the fixed cost line turns to profit. As such, the key to successfully running a high operating leverage business is to make sure that you have plenty of demand for your end product.

Legacy automakers are faced with a real conundrum. The real price of automobiles has more than doubled since the mid-1970s while median worker pay has remained stagnant over the same time. In addition, competition is fierce, and, with the exception of the shape of the hood ornament, products are largely commoditized. To top things off, the average car spends 90% of its time idled Ė sitting in a parking spot or garage, twiddling its mechanical thumbs until its owner returns. To add insult to injury that asset keeps depreciating on a monthly basis.

The surest ways legacy automakers have found to spur demand in the face of these significant headwinds is by loaning money to clients to buy the cars (ď0% interest and no money down!Ē) or buying the cars themselves and loaning them to clients in return for a lease payment. I consider the customers to be the companiesí joint venture partners in some sense, so the net amount of money loaned to them must be counted as investment spending.

One of my biggest concerns is that consumers and corporations got hooked on a drug I call easy money (LOW INTEREST RATES). which I believe helped grow this economy. Now the Fed wants to keep increasing them at a rate I personally believe is to fast for consumers and corporations to adjust. I get the inflation argument but this is a delicate dance if they act too aggressively we could go into a recession.

Read yesterday: The Fed has already put in place a path that theyíre going to be increasing interest rates for the future. Theyíre talking about a December rate hike, three to four [increases] next year, and potentially more rate hikes in 2020.


As I quoted above on the 20th about GM slashing cost, letís try and read the tea leaves on the ME release. First, Let me say it again the ME will not be 169k and its pricing will follow the normal course of the previous generations. GM canít afford to produce two models itís an ME or FE not both unfortunately GM finance killed that ideal a few year ago. Over the decades GM has come very close to producing an ME, the good news for all of us this is the furthest they have come & now have no financial way to turn back. As mom would say, The cake is done and is now in the oven & itís just a matter of time till the bell goes off and itís cooked. This time next year cars should be arriving to customers thatís all I can say.

Last edited by fasttoys; 11-28-2018 at 05:10 AM.
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Old 11-27-2018, 10:39 PM
  #105  
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Originally Posted by fasttoys View Post


As I quoted above on the 20th about GM slashing cost, letís try and read the tea leaves on the ME release. First, Let me say it again the ME will not be 169k and its pricing will follow the normal course of the previous generations. GM canít afford to produce two models itís an ME or FE not both unfortunately GM finance killed that ideal a few year ago. GM has come very close to producing an ME, the good news for all of us this is the furthest they have come & now have no financial way to turn back. As mom would say, The cake done and is now in the oven & itís just a matter of time till the bell goes off and itís done. This time next year cars should be arriving to customers thatís all I can say.

this is the most logical conclusion...agreed... the latest news does raise some question as to just how exclusive it will be...I guess they could roll out like the NSX and allow 50k in upgrades.. build it online..and we all could be happy... that would make me happy for sure...

still wish why someone would explain to me why performance car companies dont offer an option for people that are going to mod .. like factory forged crank, rods, pistons, etc.. all internals built from factory for doubling HP... and just charge 5k or even 8k for the build... id have bought every performance car like that...from the factory... its a very overlooked single set of options..
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Old 11-28-2018, 05:24 AM
  #106  
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Originally Posted by bebezote View Post
this is the most logical conclusion...agreed... the latest news does raise some question as to just how exclusive it will be...I guess they could roll out like the NSX and allow 50k in upgrades.. build it online..and we all could be happy... that would make me happy for sure...

still wish why someone would explain to me why performance car companies dont offer an option for people that are going to mod .. like factory forged crank, rods, pistons, etc.. all internals built from factory for doubling HP... and just charge 5k or even 8k for the build... id have bought every performance car like that...from the factory... its a very overlooked single set of options..
i had intel earlier in the project that team corvette goal was to have an option list similar to Porsche, they believed this is one way they could increase profits and allow people to personalize their cars. Which is one of many reasons the line needed many upgrades to accommodate for these types of adjustments for future product. We will see and time will tell, GM can always change their mind. One thing I learned over the years working with large corporations, the bigger they are the harder it is for them to make quick adjustments, in other words the plant closers been in the books for a while. Companies like this are like a large cruise ship in a small crowded lake and to make a 280 degree turn is not easy. ME will happen it’s to late for them to make a turn without loosing tons of money, the project is to far down the road.

Last edited by fasttoys; 11-28-2018 at 05:27 AM.
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Old 11-28-2018, 08:19 AM
  #107  
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Originally Posted by Glenn Quagmire View Post
This qualifies as one of the most inane threads I've seen in the 7+ years I've been an active member here. Quick, someone post a thread about what happens to the C8 after the 2020 election. Others should be created to discuss how the C8 may be impacted by the recent Mars landing, Brexit, impending zombie apocalypse, WWIII and the potential emergence of paperless toilet paper. Oh, maybe we should also be talking about the resale value of the C8 when cars are no longer being purchased in ten years, as recently predicted by the Uber CEO...https://www.cnn.com/videos/business/...names-in-tech/
Links to the others, please? I found all six pages interesting so far.

Given that this one is still going strong after 6 pages, I'd be very interested in ALL the other threads that you have deemed "inane".
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Old 11-28-2018, 10:19 AM
  #108  
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Originally Posted by Skid Row Joe View Post
What we've got is EZ credit right now in America.

.Many here believe that real estate prices only go Up. Many here also believe that the stock market only goes Up.

.And why shouldn't they? 2% loans on new Chevrolets. 3% fixed 30 year APR, on real estate.
That's FREE MONEY, in some folks' minds.

.If GM can't move enough C8s, they're going to be offering the dirt cheap APRs on new Corvettes once again.
Well, to be fair, there's some evidence for that.

https://fred.stlouisfed.org/series/MSPUS



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Old 11-28-2018, 04:23 PM
  #109  
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I ran several figures through the CPI Inflation Calculator.

I entered 17.2K for Jan 1963 and it came up $148K for Oct 2018, adjusted for inflation. ^ ^ ^

I also ran a well equipped 1963 Vette Coupe MSRP $6K and that turned into $50K for Oct 2018.

Last edited by 6GenVettes; 11-29-2018 at 11:26 PM.
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Old 11-29-2018, 04:24 PM
  #110  
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GM says trump's tariffs will cost the company 1 billion $$$$$$$$$$$$$
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Old 11-29-2018, 04:45 PM
  #111  
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Originally Posted by Walter Raulerson View Post
GM says trump's tariffs will cost the company 1 billion $$$$$$$$$$$$$
Enough... you post the same damn thing over and over in every thread.

Last edited by Tool Hoarder; 11-29-2018 at 04:45 PM.
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Old 11-29-2018, 05:38 PM
  #112  
Glenn Quagmire
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Originally Posted by Renfield View Post
Links to the others, please? I found all six pages interesting so far.

Given that this one is still going strong after 6 pages, I'd be very interested in ALL the other threads that you have deemed "inane".
Really?! Okay, here are just a handful to start with...knock yourself out

https://www.corvetteforum.com/forums...ed-thread.html
https://www.corvetteforum.com/forums...-corvette.html
https://www.corvetteforum.com/forums...nd-the-c7.html
https://www.corvetteforum.com/forums...-corvette.html
https://www.corvetteforum.com/forums...itle-game.html
https://www.corvetteforum.com/forums...u-outback.html
https://www.corvetteforum.com/forums...new-puppy.html
https://www.corvetteforum.com/forums...tus-exige.html
https://www.corvetteforum.com/forums...-gunfight.html




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Old 12-01-2018, 08:41 AM
  #113  
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Except for off topic and the Song Title thread (which I loved), you had to go back to 2008 to find more than a one-page-wonder. Talk about knocking yourself out.

Thanks for the fun reads, but I found this thread more interesting than all the off topic b.s. No way in hell that it ranks anywhere near the Subaru thread you shared.

Given the fact that every Republican administration since Teddy Roosevelt has produced AT LEAST one recession, and as many as three, this thread is spot on. Relevant, timely and interesting.


Last edited by Renfield; 12-01-2018 at 08:45 AM.
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Old 12-01-2018, 10:49 AM
  #114  
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Interesting thread here. It’s worthwhile to remember that during the great recession when gm went looking for a bailout, it had only one profitable car line - Corvette. This time in with a new model driving a higher demand I think the brand will be fine. I’m in, recession or not.
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Old 12-01-2018, 04:36 PM
  #115  
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Originally Posted by Walter Raulerson View Post
GM says trump's tariffs will cost the company 1 billion $$$$$$$$$$$$$
Ford has already said the same thing, and it's not that it's going to cost them, it's that it already has cost them that much and will continue to cost more. The tariffs are gonna cause a lot of inflation and make consumer products more expensive in America. This will in turn dramatically slow the economy. There are already effects.

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Old 12-01-2018, 09:12 PM
  #116  
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China devalued the yuan 10% right after the tariffs were enacted - net effect, zero. Now if the 25% tariff hits, they won't be able to devalue again by that much.
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Old 12-02-2018, 11:36 AM
  #117  
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Most Corvette owners are affluent, retired, or both. Considering that many pay cash for their cars, I think there will still be strong demand for the car. After a 6-year run for the C7, some of the early buyers of 2014-2016s will be ready for a new car regardless of what the economy is doing.

Where it will hurt is the possibly that a percentage of younger guys who might either lose their jobs or be more careful about major purchases because of uncertainty about the security of their jobs. Another negative factor would be that a recession would drive down the price of used Corvettes that many potential buyers would be selling to make room for a new C8.

In any event, I'm not expecting a repeat of 2009. The next recession will be likely to have a more typical duration than this last one.
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