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Old 02-13-2008, 02:50 AM   #35
HeilSvenska
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Join Date: Dec 2003
Location: The OC™
Posts: 4,881
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Originally Posted by BloodyPenguin View Post
Ok, my last post about this issue.

GM just has issues in general. (Like their huge loss over 2007). That is why Toyota could do it right with a Cheap Lightweight RWD car. Keep the price around 20K. Could be a simple non-turbo with around 150HP.

I do love the tC btw, convinced my ex-girlfriend to buy one.

As for the Stang. I owned two of them, they are big and heavy.
Mustang's still the most accessible new RWD car.

Oh, and GM didn't really lose $38 billion last year. It's just some crazy corporate law that made GM report all their net losses over the years all at once.

U.S. tax law allows a corporation that suffers net losses to carry forward the total loss balance into future years in order to use the negative numbers as offsets against future profits. The result is that future taxes are lower because the corporation is taxed only on the profits minus the forwarded loss. Meanwhile, the total losses that are carried forward are treated as assets on the balance sheet. That is where GM gets its total of $38.6 billion; it is the automaker's cumulative loss total.
Toyota won't do it. It could. But it wont. Not when it can comfortably ship boatloads of FWD cars without trying much.
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