VW exec touts potential of Ford partnership

[7Mary3]

I am left wondering if any potential Ford - VW tie up would include access to the Class 8 OTR truck market in North America...both companies are woefully short in this area for North America.

 

Keep in mind VW is in the process of spinning their truck group off. The new entity will go by the name 'Traton', and they are busy forging a relationship with Navistar.

[jasonj80]

Looking at this practically-unless there is a substantial cost savings in not owning a vehicle and using an Uber type service to get around- I just dont see it being practical for the vast majority of users.

 

If no one owned a vehicle, youd have to increase the amount of them to have the same coverage, because your going to tick off users if they have to wait more then 5-10 minutes to get picked up. So you have a vehicle being used, another traveling to get someone and yet another in the shop being repaired.

 

I can understand a portion of the total fleet going this way, but to have 80-90 of the market go this way is pure folly. I can see maybe 20-30%.

If 30% of the market goes away that would be a yearly selling rate of 10-11 million units sold in the US market, that volume is where everyone is losing money. It is going to depend on transit system and cost of vehicles. I suspect in the next 5 years ATP of a vehicle in the US will be north of 40,000. That makes ride-share look better when its costing you $500 a month. What if Ford/VW offered unlimited ride share and 5 day use of a car for the month and it was $600? You wouldn't need insurance, you'd never put gas/electric in the car and the worse case was that you had to wait 10min to get picked up.

[silvrsvt]

If 30% of the market goes away that would be a yearly selling rate of 10-11 million units sold in the US market, that volume is where everyone is losing money. It is going to depend on transit system and cost of vehicles. I suspect in the next 5 years ATP of a vehicle in the US will be north of 40,000. That makes ride-share look better when its costing you $500 a month. What if Ford/VW offered unlimited ride share and 5 day use of a car for the month and it was $600? You wouldn't need insurance, you'd never put gas/electric in the car and the worse case was that you had to wait 10min to get picked up.

The problem is that as a society we are becoming more and more a society of renters then owners-with the sole purpose of trying to extract more $$$ out of you. IMO its a slippery slope that youll wind up losing other things along with it.

 

I know that I can buy a car and it be expensive on the front end, but after 4-5 years Ill own it the costs will be significantly less after that. With what your talking about, Id be stuck in a loop spending $500-600 a month just to be able to get to work I looked at Uber and did the math and its just too expensive even to travel 15-20 miles to work five days a week with it.

[jasonj80]

I know that I can buy a car and it be expensive on the front end, but after 4-5 years Ill own it the costs will be significantly less after that. With what your talking about, Id be stuck in a loop spending $500-600 a month just to be able to get to work I looked at Uber and did the math and its just too expensive even to travel 15-20 miles to work five days a week with it.

I spend about $500 a month with a paid off car. Figure $200 for Fuel, $200 for insurance and $100 for maintenance. I agree that we are a society of renters but also looking at it renting is sometimes a much better financial outcome than owning. It might not work for you, but for for that 30% it might.

[Sevensecondsuv]

The problem is that as a society we are becoming more and more a society of renters then owners-with the sole purpose of trying to extract more $$$ out of you. IMO its a slippery slope that youll wind up losing other things along with it.

 

I know that I can buy a car and it be expensive on the front end, but after 4-5 years Ill own it the costs will be significantly less after that. With what your talking about, Id be stuck in a loop spending $500-600 a month just to be able to get to work I looked at Uber and did the math and its just too expensive even to travel 15-20 miles to work five days a week with it.

Keep in mind that there are a large portion of car buyers that never pay the vehicle off - their loan term just gets 12 months longer with each car they buy every 3-4 years or so. Do that for about 12 years and a moderate fixed monthly "rent" payment probably starts to look attractive.

[silvrsvt]

I spend about $500 a month with a paid off car. Figure $200 for Fuel, $200 for insurance and $100 for maintenance. I agree that we are a society of renters but also looking at it renting is sometimes a much better financial outcome than owning. It might not work for you, but for for that 30% it might.

 

Jesus what are you spending $100 a month on maintenance on a car?!

[akirby]

Synthetic blinker fluid changes?

[fuzzymoomoo]

Synthetic blinker fluid changes?

CRAP! I forgot to change mine. I'll have to to it after work.

[J-150]

 

Jesus what are you spending $100 a month on maintenance on a car?!

100 is what you need to budget for. What you dont spend that month goes into the fund that pays for $800 to $2000 repairs. Edited September 28, 2018 by J-150

[silvrsvt]

100 is what you need to budget for. What you dont spend that month goes into the fund that pays for $800 to $2000 repairs.

Outside of tires, you shouldnt be looking at those types of expenses IMO

 

I had my Mustang for 11 years (last three was very limited operation) and the biggest out of pocket expense outside of tires (which I could normally save up for beforehand) was getting the plugs done on it-because I didnt have the time to do it myself.

 

My SHO is 6 months out from 6 years and outside of tires and brake job-all Ive have to do to it is change the oil.

 

The tires and brakes where about $1200 and not done in the same year.

 

I can see spending maybe $500 a year on maintenance items-but also very depenant on how much you drive too.

[Sevensecondsuv]

For the last 15 years I've been driving cars that are about 15 years old, on average. I've never once been dead on the side of the road or had a repair that exceeded about $350 (which was a top end rebuild on the 4.0 in my old explorer). I spend maybe $1000/year to maintain my entire fleet of five vehicles. And that mostly comes down to oil changes, tires, brakes, and suspension parts. Very very little drivetrain work even though I'm pushing relatively high miles on most of them.

Edited September 28, 2018 by Sevensecondsuv

[jasonj80]

100 is what you need to budget for. What you dont spend that month goes into the fund that pays for $800 to $2000 repairs.

Exactly, Tires are every 3 years at about $1200, oil changes ever 3/4 months, and if the trans goes that will be two years of money. Then when you don't spend you build up for the next car or major expense. I never finance a car unless I can get 0%.