GM, Ford stuck in neutral, buyers abandon Detroit

In just the last few weeks, the grand plans that were supposed to carry General Motors and Ford Motor into their second centuries have crumb...

In just the last few weeks, the grand plans that were supposed to carry General Motors and Ford Motor into their second centuries have crumbled. Sales at GM have fallen, profits have tumbled to losses. Last week, Ford also warned of a drop in earnings. In yet another blow, its union refused to give much ground on GM’s health care coverage. If that were not enough, GM’s stock hit a 12-year low.

The Big Two automobile giants offer plenty of explanations, from soaring health care costs to rising gas prices and creeping interest rates. But consumers and industry specialists say GM and Ford have swerved off course for a more basic reason: not enough people like their cars.

‘‘I still hate to buy a foreign car,’’ said T.J. Penn, a 44-year-old painting and drywall contractor walking through a Toyota lot this week in Ann Arbor, Michigan.

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Despite free loans and rebates worth several thousand dollars, GM and Ford are losing sales to perennial competitors like Toyota and newer rivals like Hyundai, which are more often getting the carmaking formula right: consistent quality, reliability and that intangible appeal. GM and Ford are having such a hard time bringing in the real American consumer that about a third of their sales go to their own employees, their family and friends, or to rental companies and corporate fleets, at razor-thin margins. And now they are also losing their safety net. Detroit turned the SUV and pickup truck into popular consumer products that propelled profits for much of the last decade. But with Asian makers now entrenched in the SUV market — and setting their sights on pickups — GM and Ford have lost any margin for error.

Both companies are occupying the dreaded middle, offering neither compelling value nor compelling beauty, with exceptions like the popular new version of the Ford Mustang or GM’s revived Cadillac line. Auto companies can make up for a lot by making enticing automobiles, and right now analysts see something of a storm approaching that needs a survival plan. — NYT

Rahul Gandhi attacks EC: What happened in Aland, who can delete names from electoral roll

Explained31 min ago

Rahul Gandhi accuses Chief Election Commissioner of protecting those attacking Indian democracy. He cites the alleged deletion of 6018 votes in Karnataka's Aland constituency during the 2023 election. EC responds, saying irregularity was caught and complaint filed. BLOs can delete names from electoral roll, but verification process required. Form 7 used, with opportunity for objections.

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