Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Personal Finance / Macroeconomic Trends & Risks
Unthreaded | Threaded | Whole Thread (30) |
Author: Steve203 🐝 HONORARY
SHREWD
  😊 😞

Number: of 4460 
Subject: Re: No more affordable cars
Date: 04/14/26 9:53 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 0

The Profit PER UNIT goes UP 30%--but the Number of units SOLD goes down by 50% to 75%.

Do you have some data on demand elasticity with respect to price?

What I am proposing is 50 year mortgages would qualify people for a 3500sqft McMansion, who are currently priced out of the market, because no-one wants to bother building 1200sqft houses. Meanwhile, people who currently qualify for a 3500saft house, could qualify for a 5,000sqft house (picking numbers from the air for illustrative purposes). More people in the market, and Pulte taking more money off of each of them. Of course, eventually, Pulte would stop building 3500sqft houses, because they would drag down their ATP and GP metrics.

Farley seems to think the road to profit nirvana is built on progressively bigger, more expensive, vehicles, and the elimination of everything below average.

Ford CEO Farley Says Two Row ICE Crossovers Going Away

FoMoCo isn't exiting the ICE business anytime soon, but does plan on reinventing that lineup by focusing on passion brands and exiting slow-selling or low-margin segments, much in the way it stopped selling sedans in the U.S. years ago. However, the Ford CEO provided even more clarity on this matter during the automaker's recent earnings call by noting that The Blue Oval won't be making and selling ICE-powered two-row crossovers in the future, too.


fordauthority.com - Ford CEO farley says company is done with two row ice suvs

I wrote Farley off as a buffoon, who sits in his echo chamber, waiting for the yes-men around him to validate his latest brain fart, but that's just me.

Steve
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Steve203 here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 4,454 posts about Macroeconomic Trends & Risks. The article-length ones it recommended most:
AI Tarpits · 36 recs · 2026
End of an era - profit slowdown · 36 recs · 2023
Control Panel: Trend changes in 2026 · 34 recs · 2026
From the Oregon Bay Area (a blogger) · 33 recs · 2025
Lerner Symmetry Theorem · 32 recs · 2025
Unthreaded | Threaded | Whole Thread (30) |


Announcements
Macroeconomic Trends & Risks FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of Macro | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community