You are right…Toyota has some BIG BIG problems right now…They lost a HUGE class action lawsuit because their engines were sludging and crapping out at 60K miles, MASSIVE RECALLS for everything from brakes, to fuel lines to accelerator pedals.
But here’s what’s eventually going to start REALLY HURTING Toyota and Honda…
S T Y L I N G
Toyota and Honda always got a pass in the styling department because their cars were so well built…People purchased them like they buy TOASTERS…They really didn’t CARE how they looked. NO ONE buys a CAMRY because it LOOKS GOOD…They buy them because they run well.
BUT…
What happens when a company like FORD starts making cars AS REALIBLE or even BETTER than Toyota…AND…builds a better LOOKING car!!!
ANSWER…FORD starts to TAKE sales from Toyota and Honda…It’s ALREADY HAPPENING.
These are CYCLES…NO ONE and NO COMPANY stays on TOP forever…The Japanese are no different…Ford is on the rise…This will FEED on itself…The more the MEDIA talks about the FORD turnaround…The STRONGER that turnaround will become…It’s a DOG chasing it’s tail.
The key for everyone here is simple…
REMEMBER what you’ve LEARNED here…with this FORD investment…IT IS ABSOLUTELY REPEATABLE…OVER and OVER throughout your lifetime. The KEY to this style of investing is FOCUS…Don’t get distracted by the STATIC, the NOISE…and for gods sake…DO NOT SELL a cyclical stock like this at the very BOTTOM of a RECESSION :banghead :banghead :banghead :banghead
If FORD can make $2.7 BILLION in THIS economy during one of the worst years in history for car sales…
THEY ARE GOING TO NEED RAIL CARS TO MOVE THE MONEY THEY’LL MAKE WHEN THE ECONOMY EVENTUALLY RECOVERS!!! Add in the PENT UP demand created by auto sales going from 15 million/year down to 8 million/year and SCRAP RATE levels not seen since WWII means just ONE THING…This train goes just ONE WAY…
UP
PS…the SCRAP RATE is the number of junk cars CRUSHED per year in this country…In 2009 that level reached a point not seen since WWII…
NEW FLASH…
You CAN NOT scrap 10 MILLION used cars per year and SELL only 8 MILLION new ones for long…At some point there will be HUGE, MONSTEROUS, pent up demand for new cars…
MARK MY WORDS…1/28/2010
At some point in the near future…FORDS problem will be KEEPING UP WITH DEMAND!!!
Chicago Assembly Plant just ADDED a second shift and HIRED back 1200 workers.
HOLD THESE SHARES…Don’t play for SHORT MONEY when the LONG END is the WEALTH BUILDER!!!