The Corner

Subject: Clunker Data

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Hi Mr Lowry–

My pop and I (both gearheads) went over your list and realized it’s far worse news for the domestic three than we realized. 

Profit margins and points of origin…  my comments follow in [brackets]

The Ten Most Purchased Vehicles (vehicle’s EPA mileage)

1. Ford Focus (27-28 mpg) [domestic production, negative margin…in fact, Ford loses money on every one sold after factoring in legacy costs, see :WSJ article from earlier this year]

2. Honda Civic (24-42 mpg) [Japan origin, decent profit margin]

3. Toyota Corolla (25-30 mpg) [domestic production(?), low margin]

4. Toyota Prius (46 mpg) [Japanese production, uncertain margin (depends on discounts)]

5. Ford Escape (20-32 mpg) [USA/Canada production, decent margins depending on options, highly variable]

6. Toyota Camry (23-34 mpg) [USA production, good margins]

7. Dodge Caliber (22-27 mpg) [USA/Canada/Mexico production, negative margins, see WSJ article]

8. Hyundai Elantra (26-28 mpg) [Korean production, decent margins]

9. Honda Fit (29-31 mpg) [Japan production, good margin]

10. Chevy Cobalt (25-30 mpg [USA production, negative margin, see WSJ]

This info I’d say is about 90% accurate…as you can see, it’s a win for Japan and Korea, and does nothing for the Big Three.

This has just been a fancier way of slipping another billion or three to the automotive manufacturers without drawing criticism, but for the Big Three’s sake it may have been better to simply cut them a check.

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