Think of buying a new car? You might want to think again.

"We Americans have a love fest going on with our cars. We love ‘em. Where else on earth can you find a couple who is flat broke and living paycheck to paycheck but with two brand new cars in the driveway? The problem is our mindset. We’ve been bombarded with the notion that we’ll always have a car payment. It’s like the auto industry has beaten us into submission, so when the car starts to show a little wear, we just run off and sign a $26,000 note for a new one. Hey, car payments are just a way of life, right?"

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Detroit Finally Gets It!

During the past two weeks, General Motors reported a $15.5 billion quarterly loss (including special items), following Ford Motor's $8.7 billion loss the week before. I shudder to think how bad it is at Chrysler. Auto execs claim they were giving Americans the products they wanted. Really? For proof to the contrary, look at their U.S. market shares, which are slumping to historically low levels as Japanese auto makers gain ground. In a recent meeting with Ford executives, CEO Alan Mulally dared to challenge the Detroit gospel that you can't make money on small, fuel-efficient cars. At last Ford appears to be making bold moves to design and sell vehicles that people want. So with Fords EcoBoost and Verve at least there is some promising news from the American auto-industry, but is it too late?

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