US dealers to raise prices on Japanese cars

[LS2JSTS]

Originally Posted By: FL-400S
Housing prices are still going down...car prices can't go up for long. Many "japanese" cars are made here any way. I agree, cars in general are already too expensive. You can barely find a car for $20k new that will fit 4 people. The next bubble? JMO...


What Japanese car is "made" here? This disaster in Japan may enlighten you a bit as to where things are actually "made". There is a huge difference between "made" and "assembled". You cant "assemble" a car in Ohio if the multitude of parts "made" somewhere else stop shipping. Same thing holds true for every manufacturer, sourcing is global today in this industry. And final "assembly" can and does get shut down for the smallest of missing supply parts. And an idling assembly line costs the company millions daily...

Oh and for the "stealership" and "selling cars is a lousy business" comments...you are right. And you know what, half of what makes it a tough business is the fact that you have to deal with idiot, uninformed consumers who walk into your store with a chip on their shoulder. The "stealership" mentality never got very far at the stores I sold at, frankly just like any other business, some people you are just better off sending down the road. Let someone else deal with them and their prejudices.
But then, I was lucky when I sold, I either worked at a family owned dealership or at one of the more reputable dealers. I'm not saying they are all good, but they sure as [censored] aren't all "stealerships".

 

[Hollow]

Originally Posted By: LS2JSTS
Originally Posted By: FL-400S
Housing prices are still going down...car prices can't go up for long. Many "japanese" cars are made here any way. I agree, cars in general are already too expensive. You can barely find a car for $20k new that will fit 4 people. The next bubble? JMO...


What Japanese car is "made" here? This disaster in Japan may enlighten you a bit as to where things are actually "made". There is a huge difference between "made" and "assembled". You cant "assemble" a car in Ohio if the multitude of parts "made" somewhere else stop shipping. Same thing holds true for every manufacturer, sourcing is global today in this industry. And final "assembly" can and does get shut down for the smallest of missing supply parts. And an idling assembly line costs the company millions daily...

A large part of the Subaru line up is built at the Indiana plant.

 

[LS2JSTS]

No, it's assembled there....huge difference. And keep in mind the entire line can be shut down for the simplest of things that are missing.

Even if the Subie had 99% parts content that were actually produced on site(and it doesn't), it could still get idled by that tricky 1%. With the transplants in Ohio a larger part of the parts content are imported.

Please understand, I'm not making a domestic vs import argument here. I'm just pointing out that supplies of parts are global...for EVERYBODY. It is simple minded to think that because Honda assembles cars in Ohio that they shouldn't be affected by this disaster in Japan. Please re read the comment I was replying to.

 

[daves87rs]

Originally Posted By: grampi
Just when the market was starting to get going again, they've decided to price themselves right back into a sales decline. While I feel sorry for what's happened to all of the auto workers, I don't feel one bit sorry for auto companies because they keep shooting themselves in the foot with high vehicle prices. YOU DON'T RAISE PRICES OF ANYTHING IN THIS ECONOMY. You bite the bullet and ride it out until the economy improves. I don't know why businesses can't understand this. You can't demand more from cunsumers when they're already completely tapped out themselves...


+1

 

[tdpark]

Car and driver had an article recently on cars with domestic content and it was interesting. Some of the hondas had more domestic content than Fords. According to the article - the accord assembled in Marysville, OH has 80% US/Canada content. The honda minivan assembled in Alabama has 75% US/Canada content. Ford F150 assembled in Kansas City, MO has 60% US/Canada content and the Taurus assembled in Chicago has 65% US Canada Content.

Parts are sourced all over the place. Just because something says ford does not mean all the parts are sourced here and just because something says honda does not mean all the parts are shipped here from japan. I got my figures from the april 2011 issue of Car and Driver.

 

[M1Accord]

Just like oil and gas price, the price hike is unidirectional. Anyone notice gas price hasn't come down even though oil price is.

It would be funny if they raise American made Japanese cars. Supply and demand trick all over again.

Best Buy and Costco sale reps are telling consumers to expect a big price hike in electronics because Japan will be so far behind in technology they may as well be in the Ice Age and will need at least 15 years to recover; therefore, now is the time to buy a new flat screen with the most technology package as we may not get them ever again. And I was foolishly thinking that most TVs are made in China, even the new ones with all the acronyms like LED, LCD, LED LCD, 3D, Progressive 3D, etc.

Bull and more bull. I'll be driving my cars for another 10 years and will be picking up a nice used American Iron from the 80s soon. Screw the dealerships, the repair shops, and middlemen.

 

[M1Accord]

Originally Posted By: LS2JSTS
No, it's assembled there....huge difference. And keep in mind the entire line can be shut down for the simplest of things that are missing.

Even if the Subie had 99% parts content that were actually produced on site(and it doesn't), it could still get idled by that tricky 1%. With the transplants in Ohio a larger part of the parts content are imported.

Please understand, I'm not making a domestic vs import argument here. I'm just pointing out that supplies of parts are global...for EVERYBODY. It is simple minded to think that because Honda assembles cars in Ohio that they shouldn't be affected by this disaster in Japan. Please re read the comment I was replying to.


Your 1% argument is the same argument oil and gas companies use to jack gas price up when there is some trouble in Libya, which produce only 2% or less oil, which doesn't make it to the U.S. It's supply and demand alright, the consumers supplying their hard-earned money and the greedy bankers and oilers keep on demanding more. I say burn them all.

 

[LS2JSTS]

Originally Posted By: M1Accord
Originally Posted By: LS2JSTS
No, it's assembled there....huge difference. And keep in mind the entire line can be shut down for the simplest of things that are missing.

Even if the Subie had 99% parts content that were actually produced on site(and it doesn't), it could still get idled by that tricky 1%. With the transplants in Ohio a larger part of the parts content are imported.

Please understand, I'm not making a domestic vs import argument here. I'm just pointing out that supplies of parts are global...for EVERYBODY. It is simple minded to think that because Honda assembles cars in Ohio that they shouldn't be affected by this disaster in Japan. Please re read the comment I was replying to.


Your 1% argument is the same argument oil and gas companies use to jack gas price up when there is some trouble in Libya, which produce only 2% or less oil, which doesn't make it to the U.S. It's supply and demand alright, the consumers supplying their hard-earned money and the greedy bankers and oilers keep on demanding more. I say burn them all.


Yeah except for one huge glaring problem. How do you suppose they can build and ship cars if the assembly plant only has 99% of the parts needed to build the car?

Unlike the oil industry which would just ship what they were able to produce, the auto manufacturers couldn't ship anything with out 100% of the parts being available. Seems pretty obvious to me the differences in the production streams.

 

[Shannow]

I'd guess that the 1% isn't just heated seats.

 

[LS2JSTS]

Could be, if it were just some optional part then the plant production gets scheduled around it and they can still operate semi efficiently.

But what if it's the seat assemblies that go into every model across a class line or if it's the dash assemblies because the sub contractor is shut down. The percentage is irrelevant, pulled from my hat to make an example.

At this point I'm sure even the manufacturers are still scrambling to learn exactly to what extent this will affect different companies. But around here, it seems no matter what, we've got it figured out..."their just screwin us"...lol.

 

[Shannow]

I can say that the Japanese at the moment haven't got an assessment of what they can deliver, let alone when they can deliver it.

Think of how much production needs to start to build a place that even resembles what was there a few weeks ago, then where factory priorities will go when rebuilding their infrastructure versus feeding our businesses as usual.

And they don't even know when the brownouts will stop.

There's about my state's consumption worth of nukes out of service at the moment, inclusive of those that didn't blow up.

 

[Silk]

Seeing as most of our vehicles are used Japanese imports,I guess we will see an increase in flood damaged cars.

 

[Shannow]

Haven't they arrived already ?

 

[eljefino]

The DOD is watching this sort of issue; they want a domestic source of the whole variety of simple electronic chips and the machinery to make them. Nail/horseshoe analogy. What if we need some Korean chip for a subassembly for a circuit board for a guidance computer to make 112 new Tomahawk missles?

After WWII new cars rolled out of showrooms with temporary wooden bumpers. Metal (chrome?) shortage still.

 

[LTVibe]

Take a look at this headline posted this morning in USA Today:

Panic buying raises prices on Prius, Fit

'Panic' buying???

 

[CivicFan]

I think the gasoline prices are the major contributor. But if someone was on the fence about buying a Prius then the Japan situation might have accelerated the decision making process.

 

[LTVibe]

Originally Posted By: CivicFan
I think the gasoline prices are the major contributor. But if someone was on the fence about buying a Prius then the Japan situation might have accelerated the decision making process.

Good point, but I think USA Today's headline was a bit sensationalist. The word 'panic' will certainly get reader's attention.

 

[rjundi]

If I were salesman or sales manager and in that awful industry I would definitely play this fear factor card. If the supply has slowed down why not make as much profit as possible if you are in that industry.

Prius/FIT are hot Japan built items.

 

[CivicFan]

Originally Posted By: LTVibe
Originally Posted By: CivicFan
I think the gasoline prices are the major contributor. But if someone was on the fence about buying a Prius then the Japan situation might have accelerated the decision making process.

Good point, but I think USA Today's headline was a bit sensationalist. The word 'panic' will certainly get reader's attention.

It (the article) grabbed your attention, didn't it?

 

[odie]

" Dont buy a Honda, then."

Looks like we won't buy a HONDA Fit . Never heard back from the saleswoman at the HONDA dealer we visited on Saturday . Strike 2 .We'll wait it out when production is back up and hopefully gas prices subside . The used book value for the YARIS has risen some since the spike in gas and now the slowdown of YARIS produced in Japan , thus a few months wait shouldn't have much of a decrease for the trade . We'll keep tabs in 1st week of months ahead at EDMUNDS , K.B.B. , and N.A.D.A..