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Easy Cars for Hard Times

By Michael Frank

Easy Cars for Hard Times

While we're all griping about yet another handout to the least-deserving, worst-performing businesses in this country, there's something especially galling about this one to many of us who cover the auto biz. See, while we often get accused of rooting against the domestics, that's a downright lie. The problem isn't that American carmakers can't build great cars. They can. That's just the point. They can and they do: the Ford F-150, Chevy Silverado, and Dodge Ram are all superior to their Japanese competition. But then look at what cars are actually selling in this economy, and you see examples like the Honda Fit. Why do we have to rely on Honda to give us a successful small car like the Fit or the Civic, although Ford can sell the Focus, the Ka, and the Fiesta in Europe—models that are so much better than the domestic versions? We'll get fuel-efficient economy cars, if Ford lives long enough to bring them to market. Those European Fords are fine examples of management understanding how to make great cars—but not seeing how to get them to market faster than their competition.

But there are some good deals out there in this recession; cars that are worth the price and will hold their value. And in spite of our exasperation, we don't advise buyers to to ignore the American brands. Our outlook is more nuanced than that, although unfortunately for the Wee Three's sake, it's still not the story they want to read. Here's the breakdown, and the logic behind it.

Business Exchange related topics:
Global Auto Industry
Recession Spending and Investing
Global Recession