New York, NY (PRWEB) December 19, 2008
Financial expert Mitchell Clark, writing in today's issue of the popular on-line investment and market letter Profit Confidential, warned Detroit that the low-cost structure and battery expertise of Chinese car manufacturers would make "competing a real challenge" for the Big Three and stressed that any federal bailout must stipulate accelerated hybrid development.
In his report released today, Clark discusses a new Chinese-built plug-in hybrid car, stating, "This vehicle is expected to sell for about 149,800 yuan, or approximately $22,000 in U.S. dollars." Clark contrasts this with U.S.-made cars, writing, "Say they get approval to export this vehicle to the U.S. market and it brings the cost of the vehicle up to $25,000. The Volt is expected to hit the marketplace with a price tag of around $40,000. This is the makings of a real problem."
Clark worries that the U.S. manufacturers are ill-prepared to compete in the rapidly expanding hybrid market. "We've got the 'Chevy Volt' coming in 2010 and Chrysler is actually working hard at developing hybrid electric systems to put into a number of its vehicles, including the 'Jeep.' Ford seems to be a bit behind in electric vehicle development, saying it's about five years away from any major production. We've got to get these vehicles in the marketplace and rolling as soon as possible. The problem we have is that Chinese companies have significant expertise in battery technology development, and that country also boasts a very low cost structure, which is going to make competing a real challenge."
Clark feels that the proposed federal bailout of the Detroit automakers is an excellent opportunity to push the industry in the right direction. "I think we've got to get the Detroit bailout package settled and get some serious incentives to get more electric hybrid vehicles into production. Like in most industries now, the big red dragon is just around the corner, waiting to breathe down our necks." Clark says also, "We had better get our act together in the automobile business, because an onslaught of new foreign competition is heading our way. If the near future is going to be hybrid cars, the domestic automakers had better get things up and running quickly and with more variety -China is coming quickly."
For the full report, please visit: http://www.profitconfidential.com
About Profit Confidential:
Profit Confidential is Lombardi Financial's free daily investment and market e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, other investments and the economy. Lombardi Financial is a division of Lombardi Publishing Corporation, one of the world's largest newsletter companies, now with over one million customers in 141 countries.
For more information, visit: http://www.profitconfidential.com