NOT a very good sign for the value of mopar muscle cars
Hi Jim Harvard,
I think that like most things, profits will control everything. The SRT division had to be one of the most profitable sectors of the Corporation as almost every unit they make is presold. As well, the Ram truck is entering its third year as Motortrend's truck of the year and the Jeep division is doing very well also. This is why Peugeot wanted to buy it in the first place.
They are going to learn the same lesson that other manufacturers entering the USA did. Americans do not like small cars. That's why the Ford F-150 is the most popular vehicle sold. It has lots of room , is very well optioned , the price is affordable and it fits a family's lifestyle. Also, we saw the demise of smaller cars at Chrysler/Dodge already. The Dart was a last gasp at that. As for electric, its basically in its infancy, the price is too high, the affordable cars are too small , and the technology is suspect. That's why the take rate is only 1% of the total market. Once the manufacturers see that these vehicles are not selling, there will be a major market correction as they will have to take a substantial loss to sell them, the Government will have to use taxpayer money to subsidise them with rebates or a newer , cheaper cleaner technology will replace them.
Don't count out gasoline yet either. It still is the most efficient fuel out there per volume. With the rapid advances in technology we are experiencing in the world today, its quite possible that we may be able to clean up emissions to the point they are negligible. I don't see the Saudi's giving up their "cash cow" very easily and they will be the source of the funds to further explore the technology needed to clean up emissions caused by burning gasoline. Don't forget that there are presently 1.5 Billion gas powered vehicles on the road in the world today with millions added every year. These are not going to go away soon, especially in the poorer third world countries.
My bet's on the American Auto industry. They have risen to every challenge since they started making cars in the 1900's from Wars to bankruptcies to extremely stringent emission controls. The result? Way faster , more technologically advanced vehicles that are still affordable. We may be down but we are not out!!