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Not surprised - they stop caring making compact or subcompact cars a while back when they sold Opel to Peugeot PSA. They seem to forget that a kid buying a Civ

Not surprised - they stop caring making compact or subcompact cars a while back when they sold Opel to Peugeot PSA. They seem to forget that a kid buying a Civic today will one day have a family and drive a Honda SUV in a few years time. VW/Nissan/Toyota will no doubt be glad.

PaulHoule 4y ago
Japanese car dealers play the same games nowadays that American car dealers always did. The biggest threat to their bottom line is economy cars. If somebody buys an economy car who could possibly spend another $20,000 that is a lost opportunity that won’t come back for 5 of 10 years in many cases. Last time i bought a Fit I wanted a new one but had to get a used because they had no Fits because the ‘factory washed out in a flood' but they had 50 HR-Vs lined up that nobody had bought yet that came from the same factory. The automotive press repeats that line that Americans only want to buy huge cars like the people in The Manchurian Candidate but the fact is everyday somebody goes into a car dealership and gets pressured to buy something bigger than they wanted initially.
- tibbydudeza 4y ago
  Cause car financing is more profitable than selling the cars.
  - nicenewtemp84 4y ago
    Often car manufacturers offer subsidized rates to most buyers buying new cars. Sure Audi and Porsche are standing firm at 2.9% for 60 months pre2022, but GM Dodge Ford had no shortage of 0% for 60 months. Is that really profitable? Or are they making it all on lower tier buyers at 6.9%? I worked in the car business for years and most manufacturers don't touch actual bad credit people, so all that 10%+ loans you hear about are at other banks dealerships go through.
- dsfyu404ed 4y ago
  This. Even if dealers don't "go away" as many want the shift to a "put in your order" model over 2020-2022 definitely gave OEMs a lot more visibility into what people want vs what dealers want to stock their lots with. See for example the success of the Maverick and the jump in manual transmission take rate.

PaulHoule 4y ago

Japanese car dealers play the same games nowadays that American car dealers always did. The biggest threat to their bottom line is economy cars. If somebody buys an economy car who could possibly spend another $20,000 that is a lost opportunity that won’t come back for 5 of 10 years in many cases. Last time i bought a Fit I wanted a new one but had to get a used because they had no Fits because the ‘factory washed out in a flood' but they had 50 HR-Vs lined up that nobody had bought yet that came from the same factory. The automotive press repeats that line that Americans only want to buy huge cars like the people in The Manchurian Candidate but the fact is everyday somebody goes into a car dealership and gets pressured to buy something bigger than they wanted initially.

tibbydudeza 4y ago
Cause car financing is more profitable than selling the cars.
- nicenewtemp84 4y ago
  Often car manufacturers offer subsidized rates to most buyers buying new cars. Sure Audi and Porsche are standing firm at 2.9% for 60 months pre2022, but GM Dodge Ford had no shortage of 0% for 60 months. Is that really profitable? Or are they making it all on lower tier buyers at 6.9%? I worked in the car business for years and most manufacturers don't touch actual bad credit people, so all that 10%+ loans you hear about are at other banks dealerships go through.
dsfyu404ed 4y ago
This. Even if dealers don't "go away" as many want the shift to a "put in your order" model over 2020-2022 definitely gave OEMs a lot more visibility into what people want vs what dealers want to stock their lots with. See for example the success of the Maverick and the jump in manual transmission take rate.