MASS LAYOFFS: Auto Industry In TROUBLE

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CarEdge Podcast: Daily News You Can Use

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Today on the Daily News You Can Use, Ray and Zach discuss the latest round of layoffs from Lithia Automotive. The auto industry is realizing that times have changed. Tun in to learn more!

[steelmill]

How many Experts in the automotive industry will be fired for the over production of over priced problematic vehicles?? My guess, None!

[geoffreykeating]

Self inflicted injury, Car brands stopped making affordable vehicles in search high profits, how's that working out 😅

[ADxG]

Military experience handling equipment. Rule #1: Do not leave your vehicles stagnant. The vehicles are built to move not sit. Lot rot happens with “military grade” - happens with civvy car too.

[jerrylundegaard]

The reality on the ground in my area (DC Suburbs), I see several new vehicle purchases every week. This week end, so far, two new Hondas, a new RAM, a new Bronco, a Hyundai IQ6, and two new Chevys. This repeats every week.  

Last week I actually spotted a new Lyriq.

At least in my area, vehicles seem to be selling.

[jkn]

Drive a 10 year old Nissan Frontier to haul stuff like mulch, rocks, brush, leaf bags, mower and snowblower, and sometimes antique furniture AND you actually have to crank the windows up and down, turn on the lights and wipers when it's raining, and look over your shoulder when you're backing up. What a great little workhorse!

[stevenbesson]

Does anyone feel sorry for them after they ripped customers off for the past few years? All those add ons and up charges and customers can’t get out of those vehicles because banks will not finance the new car plus all the negative equity. So they put their own customers out of market and want to cry about it, boo hoo.

[christopherlozada]

Like Ray says cut the CEO pay man. Its always the little guy that pays for their stupid decisions. Nintendo for example did a similar thing the Ceo lowered his pay to keep their employees. Its greed man i tell ya

[dcmm]

I think AC, power windows and doors, cruise control . and a okay radio are all that is needed. I don't need heated seats, power seats, leather, monster screen I cant look at while driving anyway. Sun roofs. Plugs ups the ying yang. BUT since i don't use AC much I want power windows.

[us-unclesam]

Imagine a world where the cost of carrying inventory was taken off the price of the vehicle to move it faster.

[bfurl]

They’re going to look for government handouts before they give customers discounts.

[davidwilliams]

Anyone surprised. 6 yrs ago a base model pick was 20 k....Now 35 k.. base model cars you could get for 15k they are at least 25k. ..I'm sure the auto workers know why when they get laid off. Over computerized. Over chipped plastic expensive cars with re call issues year after year. Crazy indeed...

[pauliek]

Prices are still way too high for the current vehicles. The inflated costs of vehicles adds to insurance costs & sales taxes.

[sass]

I have always loved Mazdas because even the "starting price models" are well equipped and drive well. The Mazda 3 sedan, which you can option with a turbo engine and or AWD, starts at $24, 100 compared to others at that price range, a peppy engine, drives well, and like I said better equipped than most "base models". I think it's like $1200 more for the hatchback and their cheapest SUV, the CX-30 starts about $25K, even the Mazda CX-5, a very well rated SUV, base model is just under $30K, and next model year (or calendar year) it is being completely redone. Yes, they could start them a little lower by putting in smaller engines, chintzing on standard equipment, or making the drive less fun, but they don't, and these are, to me, a great compact sedan and hatchback, the 3, the sub-compact SUV (CX-30) and compact suv (CX-5)

[bryancarlson]

My 1960 Buick Electra 225 has a Wonderbar AM Radio with a button on the floor that when pushed changes the radio station !! No need to take ones hands off the steering wheel!

[havok]

how in the hell did they not realize they ran out of their high end customer base??? They should have pivoted a year ago.

[cmilesx]

I appreciate Zach's warranty price/profit transparency. Thanks for the rare honesty in the auto business.

[Jim-xsfl]

Lot rot is going to be a consideration for customers. Lot rot is real

[leechavarie]

Karma ! When I was shopping for a Golf R or a GR Corolla they had 10-20 k make ups . Not worth it . Interest rates were lower and they could have sold me a car, but greed has caught up to them and interest rates are way too high now to even be bothered . Bought a 1988 Toyota pick up with 22r and it will run forever and no interest rate !

[joeldoxtator]

Our local Ford dealer seems to be going with the higher price per unit floor space model.
Saw a delivery truck today that had nothing but Platinum f150's and super duty dualies.
It's honestly probably not a bad idea from the dealer level.
Joe average isn't going to buy in this market anyways, so you might as well maximize on those that have cash regardless of the economy.

[RJManeri]

I am not buying anything new for a long time.They are still greedy and prices are still high.