You need to remember here that the reason legacy costs hurt is that there's shrinkage instead of growth. If the company grows today, then the amount of retiree cost per car is smaller today. If the company shrinks, then the cost goes up, and the company has more and more difficulty competing. In Ford's case, the shrinkage is getting to be pretty painful. Even if the Big
3 stayed the same size, Toyota's growth still helps Toyota work at an advantage.