0% Financing is Back: Is Automotive and US Manufacturing in Trouble? December 13, 2023If you’ve tried to buy a new car or truck recently, you’ve likely encountered (even with good credit) interest rates in the neighborhood of 9-10%. For someone borrowing $50K for a modestly optioned Ford F150 (including taxes, registration, and fees), current monthly payments at these rates approach $1,100 over a 60-month term. That’s in the ballpark of $250 per month more than they would be at the 0% (or .9%) financing costs! Which, of course, helps explain why car sales are slumping and why both new and used cars are piling up on dealer lots. This is only part of the picture. Major manufacturers have spent 2023 producing cars that consumers don’t actually want: namely EVs. In fact, according to Copilot, dealers had (as of November 2023) over 253 days of supply for the Ford Mustang Mach-E sitting on lots. Chevy had 221 days of supply … [Read more...] about 0% Financing is Back: Is Automotive and US Manufacturing in Trouble? Industrial News Manufacturing and Supply Chain Publisher Page
Terrorism, the US Corporate Response, and Economic Implications November 8, 2023The tragically horrific events of early October in Israel are unparalleled in the 21st century for the global Jewish community. Not since the Holocaust have so many Jews been targeted and killed simply for being who they were. The tragedy was not limited to Israelis. A minor fraction of the deceased were US citizens. As of October 13th, the death toll of US citizens stands at 27, with 17 still missing. Arutz Sheva reports that this ranks as the fourth deadliest assault on US civilians by foreign entities in history, following 9/11, the 1992 bombing of Pan Am Flight 103, and the 2016 ISIS attack on an LGBTQ nightclub in Orlando. Surplus Record resolutely condemns the appalling violence and terrorism inflicted upon Israel by Hamas and its allies, including Iran. Our hearts go out to the grandparents, parents, teenagers, children, and … [Read more...] about Terrorism, the US Corporate Response, and Economic Implications Global and International Industrial News Publisher Page
Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies October 17, 2023 We were driving in a caravan to a friend’s dock the other day on a beautiful late-summer Midwestern day. The line of cars winding through the back coastal roads near Lake Michigan was notable not for our vehicle (a V8 truck) but for what was absent: a Tesla. All four other cars in our group were Tesla Model Xs, all of which had been purchased in recent months by friends who previously drove a mix of fully loaded GMCs, Suburbans, Expeditions, and other similar vehicles. This proves that Tesla’s ingenious pricing strategy is working. On January 1 of this year, a Tesla Model X (the three-row SUV) cost $120,990. The exact same car in September was priced at $79,990. Comparable gas or electric top-end large SUVs from Ford, GM, BMW, Mercedes, and others still cost $100K and up. That's a roughly 34% price drop, for those keeping score. … [Read more...] about Tesla Channels Henry Ford’s Pricing (and Supply Chain) Strategies Manufacturing and Supply Chain Publisher Page
The Costly, Illegal Secrets of Corporate DEI September 14, 2023As an outgrowth of the recent Supreme Court ruling striking down race-based admissions at two top universities, Corporate DEI (Diversity, Equity, and Inclusion) programs are under legal attack for violating non-discrimination and equal opportunity laws. DEI programs extend into company supply chains as well, thanks to supplier diversity programs which have favored specific demographic ownership over others in terms of contract award decisions and even specific set-asides. In the Supreme Court ruling, Chief Justice Roberts observed that the Constitution’s Equal Protection Clause may never be used in the negative or operate as a stereotype. In other words, you can’t harm specific classes of individuals by favoring another. The Supreme Court found that The University of North Carolina violated the Equal Protection clause by … [Read more...] about The Costly, Illegal Secrets of Corporate DEI Global and International Publisher Page
Unraveling the Complexities: China & US Relations August 8, 2023If one subscribes to the narrative as presented by media headlines, it would appear that the relationship between China and the US is languishing at an all-time low. Some of this may simply be misunderstanding due to a lack of direct dialogue. For example, evidence suggests the “spy balloons” were likely anything but after further examination, despite US headlines during the crisis that stoked serious vitriol within the Chinese politburo initially, without functional relations between the countries to deescalate the situation. And of course issues concerning Taiwanese sovereignty and the South China Sea continue to reach potential flashpoints on a weekly basis. Nevertheless, beneath the frosty rapport between the US and China lies a host of internal challenges within China itself — separate from its relations with the West. China is … [Read more...] about Unraveling the Complexities: China & US Relations Global and International Publisher Page