Omelet opportunity for the Big 3

I just read Gas guzzlers a hit in China, where car sales are booming.

Why? Two primary reasons.

1. There are more billionaires in Hong Kong than any other city in the world. They've got lots of money. But forget about the billionaires - generally speaking, there's just so much demand in that area of the planet, period.

2. Environmental policy is relatively lax compared with Europe or even North America.

I would hate to see the Big 3 act irresponsibly and make a crash-grab out of the situation by continuing to build gas-guzzlers for the Asian market. BUT...the current inventory that's no longer selling here in North America should be wrapped up with ribbons and bows and shipped over there, and the revenue be invested in the future.

Why boycotting Gas Stations Won't Lower Prices

Believe me, I sympathize, but I've got to tell you - boycotting a gas station will not bring down the price of gas. Give me a few minutes to demonstrate why, as well as propose what we can do to lower gas prices (although it will not be a quick fix to remedy the current high price right now).

Why boycotting won't work
Picture an intersection that has two gas stations. We've all agreed to buy no gas for a set period of time (a particular day, weekend, week, month...doesn't matter). Company A owns x% market share, and it was being boycotted, people started buying their gas elsewhere, and the other companies would have to adjust their supply to meet all the new demand.

Flaherty's Flatulence

I can't stand it! Jim Flaherty says the Canadian Government has no intention of stepping in to do anything about the increased price of fuel. He says he has no position to do so because the price of gasoline is market driven. That is unbelievable! I don't know if its more unbelievable that he would have the nerve to say it, or that he believes it's that easy to pull the wool over the Canadian public's eyes! Is it that easy? Are we really that stupid?

Canadian auto industry needs a major correction

The headlines scream, Queen's Park and Ottawa argue over who is more responsible to "support the auto industry" by reopening a Windsor Ford plant that has shut down...my question is, why?

Yeah, yeah, I know that there is a trickle down to local economies surrounding auto manufacturing plants. If the assembly lines are humming, pay cheques are being sent out, and everything from rents and mortgages to pizza and the local bowling alley gets a piece. But, people work in retail, and other services. People work as small business owners. People work in trades. If a local mom'n'pop shop hits hard times, should the government gallop in to help them out? No, because they don't employ as many people, goes the logic. And "the auto industry" is in trouble. Really?

Toyota drops Canadian prices - but not enough?

Toyota Canada lowers prices on five models.

It has become well documented that it is significantly cheaper to buy a car in the United States than to buy a similar car in Canada. And Canadians will typically demand pricing north of the border to better match those found south of the border. After all, we have free trade, right? And the cars are not travelling any further to sell in Canada as they are to sell in America, right?

Whether it's prices on books, or food, or clothes, Canadians love to cross the border and shop till we drop, especially if we can get to a state like Pennsylvania where there is no sales tax.

Problem is, it's not quite possible to expect similar pricing in these two separate and distinct countries, once we think about it.

Toyota production down - no kidding.

Toyota Canada lowers prices on five models.

Let's talk about production, sales, volume - I don't like it (as a business model for a car manufacturer, that is).

Hargrove does not speak for all Canadian auto workers

J, I totally agree with you that Mr. Hargrove is out of touch. Here's a recent article in The Toronto Star - Auto industry is death-bound: CAW

First of all, let's not confuse "unionized workers" with all auto workers in Canada. There are plenty of non-unionized auto manufacturing operations going on in Canada. For example, Honda of Canada Manufacturing has just brought online a new manufacturing facility in Alliston, ON alongside it's main plant, which has continued to win awards for quality in producing Honda's Odyssey, Ridgeline, and other trucks, as well as Honda's Civic, Canada's best selling car for nine straight years and counting.