GM Bankruptcy Filing Expected 8 a.m. Monday 6/1

[BigPontiac]

Link to Article

[Satty]

President Obama is expected to hold a press conference at 11:30 to discuss the bankruptcy filing.

[gmcbob]

This is something that I sort of knew already, but I didn't know the exact numbers.

"Beyond quality, trendsetters typically shun Detroit-brand cars, a problem that is especially prevalent among highly educated buyers who also tend to purchase higher-margin vehicles. Car buyers who are college graduates account for 70% of European-brand car sales in the U.S. and 55% of Asian brands -- but only 39% of Detroit-brand car sales, according to J.D. Power & Associates."

This kind of makes sense though (and if you think about it, there really isn't that big of a spread between the 55% and 39% numbers between Asian and American brands). You have a lot of workers that supply parts and services to the auto industry that don't have a degree that are still tied to the auto industry - so they're going to buy American because their job more or less depends on that industry. Moreover, you have a lot of people that live in rural areas that don't have a degree that perhaps don't have access to an import dealer. Also, there's a lot of non college educated people out there that may have their own businesses (construction and/or real estate type businesses, etc..) that probably tend to buy trucks and full size SUVS because the need them. We all know who does that best, right?

All of this aside though, the D3 MUST figure out a way to get college educated young people who just have regular office jobs to consider their cars. I actually think Ford kind of does the best job of this, but this is an important demographic that all three of the domestics really need, and bad.

Ironically, some of my closest and best educated friends and family (three with Masters degrees) drive late model domestic cars and trucks.

[daves87rs]

This is something that I sort of knew already, but I didn't know the exact numbers.

"Beyond quality, trendsetters typically shun Detroit-brand cars, a problem that is especially prevalent among highly educated buyers who also tend to purchase higher-margin vehicles. Car buyers who are college graduates account for 70% of European-brand car sales in the U.S. and 55% of Asian brands -- but only 39% of Detroit-brand car sales, according to J.D. Power & Associates."

This kind of makes sense though (and if you think about it, there really isn't that big of a spread between the 55% and 39% numbers between Asian and American brands). You have a lot of workers that supply parts and services to the auto industry that don't have a degree that are still tied to the auto industry - so they're going to buy American because their job more or less depends on that industry. Moreover, you have a lot of people that live in rural areas that don't have a degree that perhaps don't have access to an import dealer. Also, there's a lot of non college educated people out there that may have their own businesses (construction and/or real estate type businesses, etc..) that probably tend to buy trucks and full size SUVS because the need them. We all know who does that best, right?

All of this aside though, the D3 MUST figure out a way to get college educated young people who just have regular office jobs to consider their cars. I actually think Ford kind of does the best job of this, but this is an important demographic that all three of the domestics really need, and bad.

Ironically, some of my closest and best educated friends and family (three with Masters degrees) drive late model domestic cars and trucks.

Very true. Problem is the whole industry will change in the next few years...

[mustang84]

All of this aside though, the D3 MUST figure out a way to get college educated young people who just have regular office jobs to consider their cars. I actually think Ford kind of does the best job of this, but this is an important demographic that all three of the domestics really need, and bad.

Ford is doing a great job right now with the Fiesta Challenge event in getting Gen Y'ers in their cars. Also, I noticed Ford usually had a presence on my campus the last few years with the Edge, Fusion, etc. for the "Ford Drives U" college campaign. GM and Chrysler never had any of this presence.

[A Horse With No Name]

Hispanics drive a high percentage of imported cars, as do Asians, etc.

LOTS of market potential for the D3 should they choose to be lean, mean and agressive.

I wouldn't write them off just yet, esp. Ford.

Chris