Mr. Michael Cain

GLG News^SM Analyses by Michael Cain(?)

Is Honda going to save money by withdrawing from Formula One Racing

December 22, 2008

Analysis of:Honda quits F1 amid economic slowdown | nbcsports.msnbc.com

Honda is quitting!  This is important news to the people that follow Formula One Racing throughout the world.  Honda is giving up and taking their cars home to Japan.  In the economic climate of today’s auto business this is probably a smart move by Honda.  The reports say that they will save some six hundred million dollars by giving up the 2009 Formula One season.  But money may not be the only reason for this pull back.  Honda has not been winning.  Winning is why a car company enters F-1 in the first place.  Competitors such as Toyota have been finishing in the points and the Honda Teams were struggling.  Honda engineers and the Honda Company take great pride in their winning racing heritage and lately that pride has been absent from Formula One Racing and that is why Honda is gone. 

Timing is Everything

October 15, 2008

Analysis of:G.M. and Chrysler Explore Merger | www.nytimes.com

The idea of GM buying out Chrysler is an exciting idea.  GM was willing to pay up to five billion dollars for the Jeep Division just a few years ago.  Imagine a Cadillac with a Hemi engine and so on.  Both companies would benefit from this merger and it would be an exciting time in the industry.  The elimination of two corporate offices and personnel departments and technology centers and testing and under utilized plants and etc. would be great for the business and would lower the cost of building autos and trucks.  This would be a good idea in normal times, but we are not in normal times and this merger should not happen for GM to succeed in 2010.

Why the Big US made auto's won't sell

September 9, 2008

Analysis of:Sales Slump In Luxury Car Segment And Auto Makers Offer Deals | online.wsj.com

Current a condition is taking place in the auto industry that is not new put is puzzling to some auto observers.  Large American made cars simply are not selling in the US market place.  This is not the first time this has happened and will probably not be the last.  Here is why:   1.      American made large cars are not as fuel efficient as some import cars. 2.      The trade in value of used large cars is very low causing a larger trade difference. 3.      Dealer selection is very low because most dealers are trying to work these units out of their inventory and are not restocking. 4.      Very little has changed on a new large car from the one purchased even four years ago.  (Equipment, appearance, engines, and fuel mileage.)