Word: honda
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...bankruptcy, along with Chrysler's, will certainly help drive down the U.S. market share of the Big Three and open the door further to nimble and more well-funded competitors, including Toyota (TM), Honda (HMC), Nissan and Hyundai. It would be surprising if Detroit has only a 30% share of the U.S. car market by the time vehicle sales recover even modestly, probably in 2011. (See pictures of Detroit's decline...
...addition, several automakers, among them Ford Motor Co., Volkswagen, Nissan, Honda and Mitsubishi, have applied for assistance under the Federal Reserve Board's Term Asset-Backed Securities Loan Facility or TALF. The TALF, which was set up last fall, was designed to subsidize the sale of asset-backed securities, a critical source of funding for car loans, student loans and credit card receivables...
...news flash is "asset." Thanks to the cash-for-clunkers program cooked up in Congress, our 2001 Honda Odyssey may actually be worth something - up to $4,500 if we trade it in on a new, more efficient vehicle. That works out to nearly a dollar per dent, scratch, stain and tear...
...Could we do better? We're partial to Honda products, so I clicked on the 2009 Odyssey. The new model averages 20 mpg, two more than our clunker. And that is enough of an improvement under the Dingell plan to earn us $3,500. Upgrading would also cut pollution, shave half a ton from our carbon footprint and reduce our nation's dependence on foreign oil by a full barrel...
...real problem facing U.S. car companies is that my family's automotive path has been replicated in millions of garages across America. Unlike me, my kids didn't grow up in the backseat of a Pontiac. They grew up in the backseat of a Honda Accord, then a Toyota Camry and finally a Toyota Sienna minivan. So guess what? I suspect that when it's their turn to buy their first new cars, they'll be looking at the brands they know best, just as their father did a generation ago. Their old man wishes, in his heart, that they...