2004 Ford F-150 Fx4 on 2040-cars

Auto blog

Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Michigan museum offers Model T driving classes

Halfway between Detroit and Chicago, there is a car museum that gives visitors a unique level of interaction with antique cars. The Gilmore Car Museum in Hickory Corners, MI has a driver's training class to teach people of any age to learn how to drive a Ford Model T.
From the crank starter to the column-mounted throttle control, this driving school teaches people all there is to know about driving and operating a Model T. Each class lasts about two and a half hours and is only open to 18 students. There are ten sessions planned for 2014 - twice a day on May 3, June 22, July 22, August 23 and September 14. The class costs $95 (or $85 for members), and it also includes a tour of the museum's automobile collection.
In addition to this driving school, the museum has plenty of exhibits on the property, and it's open all but three days per year (Easter, Christmas and New Year's Day) with free admission for school field trips and active military. Be sure to check out the Gilmore Car Museum's website or visit them on Facebook for more info.

Autonomous tech will drive motorheads off the road

While autonomous technology could make car travel much safer and more efficient — and automakers and marketers are salivating over the prospect of a "passenger economy" that could potentially generate $7 trillion by 2050 — those of us who enjoy driving are not so stoked. Experts have predicted that as autonomous vehicles are deployed in large numbers, human-driven cars eventually could be outlawed on public roads due to the carnage they create, which is currently more than 41,000 deaths a year in the U.S. alone and climbing. Such scenarios have driving enthusiasts envisioning a "Red Barchetta" style nightmare becoming reality, making Rush lyricist Neil Peart a clairvoyant as well as one of rock's most badass skin-pounders. But there could be a couple of refuges left for motorheads, and they won't be on public roads. As Popular Science's Joe Brown points out in a recent editorial, we're seeing a wave of vehicles being offered by legit mainstream automakers that aren't made for public roads. The poster child of this vanguard is the 2018 Dodge Challenger SRT Demon, which comes with a crate full of goodies that lets you turn the already formidable street-legal muscle car into a drag-strip dominator. Brown also notes that two out of five of the Ford GT's driving modes are for use on the track, "catering to the $450,000 machine's club-racing clientele." We're also currently enjoying the heyday of production off-road-ready pickups that kicked off with the Ford Raptor in 2009. The latest salvo in this escalating war of overachieving trucks is the Chevy Colorado ZR2 that can take on the likes of California's Rubicon Trail without issue. Brown also gives a shout-out to his magazine's Grand Award Winner, the Alta Motors Redshift MX, which "isn't even allowed on public roads" and is "meant for bombing around motocross tracks, big backyards and single-track woods trails." If you follow Brown on Instagram, you know that he's also a two-wheel aficionado, and he points out that sales of off-road bikes are leaving street machines in the dust. Sales of off-highway motorcycles rose 29 percent between 2012 and 2016, according to the ­Motorcycle Industry Council — compared to 6 percent for road-bike sales during the same period. "That's a nearly 400-percent drubbing," Brown remarks.