Toronto, May 25, 2009—“GM will soon stand for “Government Motors” inasmuch as its Chapter 11 bankruptcy filing and partial purchase by the U. S. government are inevitable,” says best-selling Lemon-Aid car guide author, Phil Edmonston. “Selling barely half as many cars as last year, shutting down its four divisions last month, draining GMAC financing, and capriciously firing 1,200 dealers last week, were the equivalent of pouring sugar into its gas tank.” he says.

“The ailing General Motors Corporation now needs a Dr. Kevorkian more than additional Washington and Ottawa handouts.”

“Unfortunately, the American and Canadian federal governments will continue to throw good money after bad and will buy up parts of GM as they get more deeply mired in Motor City quicksand. As a former member of the federal Parliament in the 1990s, I railed against throwing money into this swamp, yet Ottawa and Quebec gave GM’s now defunct factory in Boisbriand, Quebec $220 million to stay open. History is repeating itself.” adds the former NDP MP from Quebec.

Don’t believe the auto analysts that this downturn is only temporary. Auto sales are toxic and will worsen as already-bankrupt Chrysler gets nibbled to death by its creditors and fired car dealers prepare to testify on Capitol Hill.

Talk to your neighbours. Who do you know that plans to buy a new Detroit-made car or truck?

In effect, a recent study from automotive market research firm CNW surveyed 6,000 American shoppers intending to buy a new car within six months, and discovered that at least 80 percent of them would switch brands rather than buy from a bankrupt carmaker.

Let’s see, that means Chrysler and GM could lose four out of five potential clients while their sales are barely half of last year’s total. 

The poll showed that customers were more likely to abandon Detroit automakers than foreign ones, with Chrysler faring the worst— a full 91 percent of buyers wouldn’t buy a Chrysler product if the company went bankrupt. Ford and GM didn’t do much better, with eight out of ten buyers saying they would go elsewhere if the company closed its doors.

Recession-proof’ Buys in a Bad Economy

Edmonston says ironically, now is the time to buy a new or used vehicle, if you are careful and follow Lemon-Aid’s advice on how to spot a ‘recession-proof’ car or truck.

 

“Bad news for Detroit is good news for car buyers. Three-year-old large trucks and SUVs now cost less than half their original list price because of soaring fuel costs and poor sales. Now that fuel prices have dropped, vehicle prices have remained in the basement and many cars are selling at a 30 percent discount. Prices will remain low through the first quarter of 2010.”

 

Says one terminated car dealer: “If new is sold at auction for cheap, that inventory can be remarketed for far less than whatever the factory sends along. Prices will be depressed for some time—at least until the distressed inventory can be cleared.”

To schedule an interview with Phil Edmonston on the above topic or any other automotive concern, contact him directly at lemonaid@earthlink.net or call 416-628-2821.

To receive a review copy of the Lemon-Aid 2009-10 Used Car and Truck Guide and for further information, contact:  Ali Pennels, Dundurn Press, apennels@dundurn.com or call 416-214-5544, ext. 222.

 

Lemon-aid Used Cars and Minivans 2009-2010 author Phil Edmonston says that the Detroit carmakers are “Dead men, walking” And anyone planning to tour the country in a  Chevrolet better hurry. GM has just ditched Pontiac, after sounding the death kneel for Opel, Hummer, Saab, and Saturn. Even GMC, the automaker’s upscale Chevrolet truck division is on GM’s endangered species list.”

Lemon-Aid predicted the bankruptcy of Chrysler and GM several years ago.

 

Says Edmonston: “GM’s market valuation is now about a third of Bed, Bath, and Beyond; Its two billion dollar capitalization is about two percent of Toyota’s one hundred billion dollars+; and GM stock is barely a buck-fifty a share. Ford stock sells for almost $5.”

 

Quoting the National Review, an American conservative magazine, Edmonston agrees that “General Motors, like the other two geezers of the Old Three, is a vast retirement home, with a small loss-making auto subsidiary. The UAW is the AARP in an Edsel: It has three times as many retirees and widows as “workers”. GM has 96,000 employees but provides health benefits to a million people.”

 

These legacy costs compounded by Chrysler and GM inefficiencies and maladministration mean that a huge increase in sales will only make the Detroit-based automakers lose money faster. For example, Honda and Nissan make a pre-tax operating profit per vehicle of around $1,600; Ford, Chrysler and GM sustain a loss of between $500 and $1,500—losing money on every vehicle sold.

 

Edmonston, the first NDP MP from Quebec ever elected to Parliament, doesn’t mince his words: “In a few days we will know if Chrysler will avoid bankruptcy by linking up with Fiat (imagine two drunks propping up each other). And if it does get Fiat’s small car technology, it’s unlikely buyers will risk their money on a Chrysler Fiat and it’s even less likely that Chrysler’s large-platform factories in Canada will build the cars. Smart money says Chrysler is no longer a viable entity no matter to whom it is partnered (remember, not even Mercedes could afford to support Chrysler’s cash-burn).”

 

Again, Edmonston quotes Cohen: “Leonard Cohen sums up succinctly the Detroit automakers’ plight when he sings: “Everybody Knows”.

 

Good Buys in a Bad Economy

Edmonston says now is the time to buy, if you are careful and follow Lemon-Aid’s advice.

 

“Bad news for Detroit is good news for car buyers. New and used car prices have plummeted. Recently-built large trucks and SUVs now cost less than half their original list price because of soaring fuel costs. Now that fuel prices have dropped by almost 75 percent vehicle prices have remained in the basement. This is the time to buy.

 

For example, a 2006 all-equipped Yukon Denali (a Better than Average Buy) that sold for $63,645 can now be bought for only $23,000. At the other end of the choices available, a 2006 fuel-frugal Ford Focus ZX5 SES four-door hatchback (an Average Buy) that listed new for $21,800, can now be picked up for $9,000. Incidentally, I have used the 2006 model year as an example of a good year to buy most cars, vans, SUVs, and trucks, because it was a watershed year for across-the-board safety and quality improvements.”

 

“Interestingly, cars and trucks that are currently coming off three- and five-year leases have added to the savings possible when buying used. Dealers gave these vehicles inordinately high ‘buy-back’ residual values, resulting in owners dumping the cars at the end of their lease and buying something else more affordable. This has created a glut of reliable, overpriced vehicles dealers can’t sell without massive discounting. And, these discounts will increase as we go into the 2010 model year. 

 

Five Tips for Big Savings

Edmonston says there are five ways car buyers can save money by purchasing a recession-proof vehicle as they ride out this economic downturn that will likely be highlighted by mass bankruptcies in the auto sector:

 

• Buy a vehicle that is relatively uncomplicated, easy to service and sold in large numbers over a decade or so. This will ensure that independent garages can provide service and parts because many parts suppliers and dealers will have also shut their doors.

 

• Stay away from European cars, vans, and SUVs. The dealership networks are already very thin, parts are incredibly expensive and hard to find, and few garages will invest in the expensive diagnostic equipment needed to service relatively complicated emissions and fuel delivery systems. The old axiom that there is a right way, a wrong way, and a European way to trouble-shoot a car, still holds true.

 

• Don’t buy a hybrid or a diesel. They are failure-prone, complicated to service, dealer-dependent, and don’t provide the fuel economy or savings they hype. Furthermore with gas as cheap as it is, there really is no imperative to complicate your life with a complex piece of machinery. Diesel complexity comes from emissions regulations passed several years ago requiring the use of cleaner-burning engines and hard-to-service fuel systems.

 

• Don’t buy most Chrysler or Dodge models with the exception of a well-inspected Jeep Wrangler or Liberty, or a minivan, which are the best of the bad. Chrysler is the weakest of the Detroit Three, most of its products are infected with serious safety- and performance-related defects, and its automatic transmission, brakes, and ACs are practically biodegradable.

 

• Don’t buy any vehicle that requires an extended warranty, even if the federal government promises to stand by the warranty. Ever argue with a Revenue Canada bureaucrat? It is likely warranties will be worthless when companies merge or shut down.  And, as cash gets scarce, automakers and dealers will find more reasons to deny warranty coverage, as they try to cover their payrolls, instead.      

 

- 30 -

 

To schedule an interview with Phil on the above topic or any other automotive concern, email or call him directly at: lemonaid@earthlink.net; Tel.: 416-628-2821.

 

To receive a review copy of Lemon-Aid 2009-10 Used Car and Truck Guide and for further information contact:  Ali Pennels at:  apennels@dundurn.com;

Tel:  416-214-5544, ext. 222.

1. Buy a vehicle that is relatively uncomplicated, easy to service and sold in large numbers over a decade or so. This will ensure that independent garages can provide service and parts because many parts suppliers and dealers will have also shut their doors.

2. Stay away from European cars, vans, and SUVs. The dealership networks are already very thin, parts are incredibly expensive and hard to find, and few garages will invest in the expensive diagnostic equipment needed to service relatively complicated emissions and fuel delivery systems. The old axiom that there is a right way, a wrong way, and a European way to trouble-shoot a car, still holds true.

3. Don’t buy a hybrid or a diesel. They are failure-prone, complicated to service, dealer-dependent, and don’t provide the fuel economy or savings they hype. Furthermore with gas as cheap as it is, there really is no imperative to complicate your life with a complex piece of machinery. Diesel complexity comes from emissions regulations requiring the use of cleaner-burning engines and fuel.

4. Don’t buy most Chrysler or Dodge models with the exception of a well-inspected Jeep Wrangler and Liberty, or minivan. Chrysler is the weakest of the Detroit Three, most of its products are infected with serious safety- and performance-related defects, and its automatic transmission, brakes, and ACs are practically biodegradable. They are no bargains at any price.

5. Don’t buy any vehicle that requires an extended warranty. It is likely warranties will be worthless when a company shuts down. And, as cash gets scarce, automakers and dealers will find more reasons to deny warranty coverage.

Watch, listen, and read about Phil as he promotes Lemon-Aid Used Cars and Trucks 2009/2010,  over the next couple of months.   Much more to come…

Whether you’re drinking your java or putting on your woolies in preparation for work, make sure you tune into CBC’s Metro Morning (GTA) and Ontario Morning (Ontario outside the GTA) for Deborah Brennan’s interview with Karen Horseman on Tuesday, Nov. 25 th at 7:20 am.

 

Labours of Love: Canadians Talk About Adoption
Deborah A. Brennan
9781550028454
$28.99 / £16.99 (paper)
Publication date: November 8, 2008

Labours of Love chronicles the journeys of Canadians from all walks of life who have overcome heartbreaking obstacles to become parents. Their stories are as diverse as our country, and span the borders of our world.

Check out our interview with the author, Deborah Brennan at http://www.openbooktoronto.com/news/labours_love_interview_with_deborah_brennan

Here’s what the Canada Council said:  “Liedewy Hawke’s translation of The Postman’s Round, by Denis Theriault, provides a seamless, empathic version of a tragicomic love story set in daily life as well as in a reality driven by imagination and dreams.  She has adroitly captured these nuances and dealt consistently well with the subtle, precise haiku that structure the novel’s imaginary landscape.”

Simply said, i encourage you to read The Postman’s Round.  It is a haunting love story and lyrical one that will stay with you forever.  I loved it!

Ali

 

Rick Antonson’s To Timbuktu for a Haircut garnered yet another good review, this time in the Globe and Mail on Saturday, Aug. 9th.  Here’s part of what they had to say: “chapters are nicely embroidered with local tones and textures, a regional history of West Africa, the Tuareg people and accounts of early European exploration.”  This followed the splendid review that appeared in The National Post on July 26, who summed up their 1/2 page coverage thusly: “Anyone interested in travelling to Africa should put Antonson’s book on the list, right after malaria tablets.”

“In 2006, the French-language original of this smart and funny novella won Montreal screenwriter Denis Theriault the Japan-Canada Literary Award, a lucrative but little-known prize.  Hopefully, Liedewy Hawke’s thoughtful translation into English will bring this perfect little story to greater acclaim.”

And now delight in what they had to say about The Dells by mystery-master, Michael Blair:

“Michael Blair has written a meaty and accomplished novel in The Dells, his fourth mystery and his second in the Joe Shoe Series.”