TJAA Professional:Canada’s Automotive Business

Home | Past TJAA Issues | Terms of Use | MERCURY login | Contact

WEEKLY VIDEO: Tips to save fuel

COVER STORY - The Greater Fool Theory and Why U of W Really Matters

by Michael Pistol

Sometimes, money market fluctuations are the best indicators of our future. From a certain angle, the recent financial credit crunch could be seen as the leading signal of what we should expect from the immediate future of our industry. For the ones in the know, the current credit upheavel is not a surprise - it parallels what it's known by the money people as the Greater Fool Theory, a theory that stipulates that there will always be a ‘greater fool' out there to buy financial products, even if they are already overpriced.
The vehicle market works pretty much in the same way: there will always be a ‘greater fool' out there to buy your vehicles, even if they are already overpriced.
Unlike money, overpriced here, stands for something much more complicated.

Premises

The auto industry is the one where change is viewed with suspicion, if not outright resistance - both at the manufacturer as well as the consumer level, and the hybrid story (still at just 1% penetration) is the most illustrative example of the reality of the markets. And that's simple enough to explain: Humans are always tempted to ignore whatever they can't comprehend.

But when the industry has its pins knocked out from its well-constructed machinery, then it must change. Rising fuel prices, currency fluctuations, environmental issues or slumping consumer confidence are just a few of small crises that usually are manageable when taken individually. However, when they are hitting all together, at the same time, all of us are heading for the exit - in a hurry.

1 | 2

Business Class Review

2008 Infiniti EX35

‘SUV' and ‘coupe' as automotive terms used to be mutually exclusive, semantically at least. However, the recent advent of a multitude of crossovers all battling for supremacy within their obscure automotive design niche, exacerbated by the proliferation of several mutants of the now famous ‘coupe' sedan genre...

Read More

Ipso Facto - Fundamentals

MARKETING: Mitsubishi’s Canadian Produced TV Spot Attracts Global Interest [WATCH VIDEO]

Mitsubishi's new advertising campaign features a factory that comes to life through intricate computer-generated (CG) graphics that underscore the company's focus on athleticism as a defining brand element...
Read More

INFRASTRUCTURE: New Detroit River International Crossing Study

With an estimated price tag of $1.6 billion (2011 dollars), the parkway will be the most expensive highway ever built in Ontario...
Read More

RETAIL: Used Vehicle Prices Under Pressure Across North America - Scotia Economics

Used car prices are expected to continue their decline throughout 2008 and into 2009, as economic conditions in North America continue to moderate...
Read More

STATISTICS: Canadian Economy contracts in February

According to the latest data from Statistics Canada, economic activity declined 0.2% in February, continuing at a much lower pace than in the first half of 2007...
Read More

AGREEMENT: CAW Ratifies Contract with Ford. GM Next, Chrysler to Wait.

CAW is expected to start negotiations with GM sometime this week, and it may follow the pattern established already with Ford...
Read More

RESOURCES 2009

CANADIAN AUTOMOTIVE INDUSTRY RESOURCES

Need results? Meet our industry's key players.
Essential data, contacts, website.

Read More

_advertisement

Seven Days

R&D: McMaster to Advance Automotive Research

A new Canadian research institute has been established at McMaster University...
Read More

RETAIL: Chrysler Canada reduces vehicle prices

Chrysler Canada has implemented a new "Thank you Canada" marketing program that effectively...
Read More

EXPANSION: New Mercedes-Benz Dealership in Kingston, Ontario

Mercedes-Benz Canada has announced that Kingston's van Herpt Motors Dealer Principal...
Read More

FUELS: Microalgae to Fuel B.C.'s Diesel Needs

BCIC announced last week that a $55,000 grant from the Ministry of Agriculture and Lands...
Read More

LABOUR: Victoria Day - Public Holiday under Employment Standards Act

Ontario's Government has released its entitlement guidelines for Victoria Day, May 19, 2008...
Read More

SALES: Snapshot: April 2008 Canadian and US Vehicle Sales

The Canadian vehicle sales for the month of April was up 3.7% - 175.200 units, an increase...
Read More

2008: INDUSTRY VIDEOS

GENEVA: Ford Fiesta, Lamborghini unveiling, Concepts: GM's Denali, Insurance - First drive, DIESEL in N. America, IIHS - SUV crash tests

_advertisement

STRATEGIC/MACRO DAILY INFORMATION for Canadian automotive business

TJAAautoinfo FASTWEBLINK

Thursday - Sept. 09, 2010

FOCUS: BMW August unit sales up 12.5% - MarketWatch

FOCUS II: Honda Aims to Boost Odyssey Appeal by Ditching ‘Boxy' Van Look - Bloomberg

ECONOMIC FUNDAMENTALS: European Crisis Flares Up in Ireland - WSJ

ECONOMIC FUNDAMENTALS II: OECD Says Economy Slowdown ‘More Pronounced' Than Anticipated - BusinessWeek

ECONOMIC FUNDAMENTALS III: Morgan Stanley: Europe's Sovereign Debt Crisis Could Next Hit France And Germany - BusinessInsider

CANADA

BMW, Mercedes battle for top spot in luxury autos - Reportonbusiness

Canada's AAA Credit Ratings, Stable Outlook Affirmed by Fitch - Bloomberg

‘Unusual uncertainty:' Where does the economy go from here? - TheStar

Canada's banks raise prime rate to 3% - FinancialPost

‘Canada won't be immune': Nouriel Roubini: U.S. still faces double-dip threat - Reportonbusiness

INTERNATIONAL

Japan to turn down 52,000 car subsidy requests - Reuters

Officially, Official: Chevrolet to unveil 2012 Aveo at Paris Motor Show - Autobloggreen

Car companies race to innovate - DetroitNews

China's August Passenger-Car Sales Growth Accelerates - Bloomberg

Opel to Bring Astra GTC Concept to Paris - WardsAuto

Kia denies report of new China plant - Reuters

Wednesday - Sept. 08, 2010

FOCUS: GM's OnStar Said to Consider Free Services, Targeting Ford - Bloomberg

FOCUS II: Why carmakers aren't coming back anytime soon - Fortune

ECONOMIC FUNDAMENTALS: Japan officials voice concern over economy as yen rallies - MarketWatch

CANADA

At the end of '09, total household liabilities in Canada stood at a historic high of 146.2% of disposable income: Rising debts cancel low-rate savings - FinancialPost

Carney May Raise Canada Rate Before Pausing to Gauge Recovery - Bloomberg

Manpower Inc: Fewer Canadian firms hiring in Q4 - CBC

Stocks: Canada snaps eight-session advance on Europe woes - MarketWatch

David Suzuki: Why even electric vehicles won't save us - Autobloggreen

INTERNATIONAL

Bentley unveils newest version of Continental - DetroitNews

Dongfeng Nissan unveils new China brand Venucia - Reuters

What peak oil? Why an oil glut is ahead - Fortune

VW to Extend Winterkorn's Contract, Board Member Says - Bloomberg

Navistar swings to profit, cuts revenue guidance - MarketWatch

Tuesday - Sept. 07, 2010

FOCUS: The rise and fall in China's auto production and sales growth since 2006: Shifting Gears - Caixin