...Generation Y

It seems as if American auto makers may have another major problem in the near future. We all know how they have been doing lately, mostly okay to good, though not nearly as strong as they were in the 90's and the decades before. Detroit is trying though, making more and more cars that get over 30 miles per gallon and are more environmentally friendly, but is it too late? Generation Y seems to be in favor of foreign cars. These are the top ten brands and models Gen Y prefer:

Top Brands for Gen Y Buyers
(Ranked by percentage of buyers in Gen Y)
1. Scion — 21.2%
2. Mitsubishi — 20.3%
3. Mazda — 10.7%
4. Nissan — 9.8%
5. Volkswagen — 9.6%
6. Kia — 9.1%
7. Hyundai — 8.6%
8. Honda — 8.0%
9. Toyota — 7.6%
10. Subaru — 7.3%

Top Models for Generation Y Buyers
(Shown with MSRP)
1. Scion tC — $18,995
2. Mitsubishi Lancer — $20,670
3. Honda Civic Si – $22,975
4. Toyota Yaris Sedan — $13,915
5. Ford Focus Coupe — $17,365
6. Scion xD — $15,830
7. Volkswagen GLI — $25,365
8. Subaru Impreza – $19,220
9. Kia Forte — $15,690
10. Toyota Corolla — $16,660

As you can see they tend to prefer cars under $20,000. Before I saw the prices I was wondering how true this is. With such American models as Mustang, Camaro and Fusion I found it hard to believe that no American brand or model made the top ten. Then I thought about how many Baby Boomers prefer those cars. The styling for the Mustang and Camaro are reminiscent of Mustangs and Camaros from the 60's and 70's, something that a lot of Baby Boomers love. Generation Y in concerned about money. Less trips to the gas station mean more trips to the mall. There are a slew of American models out now though that could attract younger buyers such as the Chevrolet Cruze and the Ford Fiesta and Focus. Will those models rank as high in reliability as some of their foreign competitors? Maybe. Will they attract buyers? That is the question that has yet to be answered. I am giving Generation Y a Digit Up because they will help open the eyes of American auto makers. Though they have learned their lessons from previous failures, I have a feeling they are still clueless on when it comes to what consumers actually want in a car.

...General Motors

General Motors is about to make a lot of its 48,000 hourly workers very very happy. These workers will be receiving bonus checks of $4,000 dollars. Engineers and managers will be receiving a bonus of 4 to 16 percent of their salary and the top bosses will get up to 50% of their salaries as a bonus. In all GM will be handing out bonuses totalling more than $400 million. Last year the company made $4.2 billion in profit through the 1st 9 months, and they are expected to post a profit for the last quarter of the year as well. I would love to give this a Digit Up, but I cannot. GM was given $49.5 billion in those auto bailouts and they have only paid back $23 billion. Before they go handing out money so willy-nilly they should pay off their loans. Yes the workers could help jump start the economy in Detroit, which could use it, this is just not a smart move. The Associated Press calculated that the white-collar bonuses could total more than $200 million, so they will be giving out over $600 million for 1 good year of business, 1 good year and they are still in major debt. They are not alone though. Chrysler plans on giving out bonuses, even though they also took a $12.5 billion bailout and they lost $652 million last year. Ford is also handing out bonuses, which I approve. They did not take any government money and posted a profit of $6.6 billion last year. Adding to this the United Auto Workers union (UAW) runs out this year and they will certainly have an issue with the white-collar bonuses. GM has a large pension plan for ts workers and these current bonus grabbing workers will be future pension grabbers in no time. GM needs to prepare for the future and save as much money as they can. Obviously history escapes them because it was this same lack of financial responsibility that landed them on Capital Hill begging for bucks 2 years ago. At this point I see them bankrupt again but this time being bought by the Chinese government, they really like Buicks over there. I am giving General Motors a Digit Down.