http://www.autoblog.com/2012/11/16/f...at-into-profi/

Big, expensive cars and trucks equal big profits. Small, inexpensive cars equal small profits.

The mathematics in today's marketplace simply can't be argued, and the result, as buyers increasingly switch from trucks, truck-based 'utes and big family cars into smaller sedans and hatchbacks, is less earning potential for full-line automakers. Like Ford, for instance. Citing the rising trend of smaller cars and crossovers, Ford Chief Operating Officer Mark Fields warned that fourth-quarter earnings will be down compared to last year.

Smaller profits in the US market are one thing; an even bigger problem is the almost complete lack of profit margin in South America and huge multi-billion-dollar losses in Europe, where economies are in crisis and automakers are laying off workers and closing plants. In other words, we're thinking Ford's eight to ten-percent margins in the States aren't looking so bad...

 

I guess they just have to build them crappier so we have to replace them more often.

 

small cars suck

 

Yet yesterday's news said Ford & Ram are gearing up for higher volume truck sales because of the beginning of recovery in housing.

 

Is it? Bernanke was *****ing about how banks have been to stringent with home loans (not that I disagree with the banks, I think it should be tough as hell to get a house, and impossible for people with less than perfect credit).

 

Prices have bottomed (unless its a pause) in every major market (allegedly - Case-Schiller?) in part because of cash buyers. Investors coming in, closing with cash, some then do a cash out refi - and they typically can qualify.
Recent positive truck sales and rebound in builder stocks seem to confirm.