Not the city itself, but the American auto industry it symbolizes. I drove through the local auto mall tonight looking for something to replace my Toyota LandCrusier. I like big SUV's. They just work well for my family and business. There are also generous tax deductions available for business use of SUV's and trucks in excess of 6,000 pounds. I could write off up to $25,000 the first year. With all this in mind I stop at the GMC dealer. First thing I see is a leftover 2007 GMC Yukon with a big 0%, 60 months sticker on it. It takes only a second to see why its left over-the sticker is $50,500. This Yukon is fairly well equipped but not loaded, no navigation system, no chrome wheels, no Denali package which is top of the line. Just fairly nice and totally unremarkable, but $50,500. No wonder the thing is leftover. A quick look around the lot shows 6 or 7 more just like it. I walk away in disgust. I then check out a new GMC Acadia crossover SUV. Not bad, but not worth the $44,000 sticker. My question is who is going to buy these things? $50,000 or a car payment of $800 to $900 a month for 5 years. No thanks. I'll keep my LandCruiser and buy another one like it when the time comes. I have to think I'm not the only one walking. I saw a report tonight that Ford lost $2.8 billion in 4th quarter 07. It was spun as good news because the loss was only half of the 4th quarter 06 loss of $5.8 billion. How can any company sustain these types of losses? I think the American auto industry is headed for extinction.
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