Automakers post lower US sales, Toyota gains
By Poornima Gupta Wed Jan 4, 9:09 PM ET
DETROIT (Reuters) - U.S. automakers posted lower December sales on
Wednesday, capping a tumultuous year in which Detroit's Big Three
struggled to come to terms with changing consumer tastes prompted by
high gas prices.
In sharp contrast, Japan's Toyota Motor Corp. (7203.T) -- which is
poised to unseat General Motors Corp. (DCXGn.DE) as the world's largest
automaker -- posted an 8.2 percent increase in December sales and
grabbed more market share from U.S. automakers last month.
It was good year for car sales overall, but GM, Ford suffered
particularly because of the collapse of their big SUVs," Burnham
Securities analyst Dave Healy said.
Asian brands won a 36.5 percent share of the U.S. market last year, a
1.9 percentage point increase compared with the same period a year ago.
U.S. automakers, on the other hand, collectively lost 1.7 points of
share at 57 percent, according to industry tracking firm Autodata.
What was it, 30 years ago that GM alone had over 50% of the US market ? I
guess that the execs spent too much time cashing their fat paychecks and cut
corners to drive up profits while ignoring the consumer. Of course the
unions wanted their slice of the big fat pie too. Things must have been
rosey for a while.
When GM sold nearly 50% of the vehicle market, in the US, there were about
five US manufactures and combined they sold 7,000,000 vehicles. Today there
are what, 15, with the majority being foreign.. However the market today in
nearly 19,000,000 and GM sells even more vehicles today, in the much large
market. The three remaining domestics still sell nearly 58% of all the
vehicles sold in the US with dozen foreign brands sharing the balance. ;)
Some years ago I worked out of the United Kingdom which used to pride itself
being the motorcycle supplier to a good part of the world. Of course,
Harley of the USA
was a major American supplier.
The British story was that the Japanese got a foothold on the market that
the classic British cycle industry. Low prices, good performance, an eye to
what the people wanted
rather than trying to sell what the industry wanted to push. The Japanese
destroyed the British
industry (or rather, the British committed suicide) which never rebounded.
If history repeats itself, the Japanese are jockeying to control the auto
industry that the US
has been so proud of. Same tactics. And with a solid ten years of
market penetration, they are gnawing away at the American bedrock.
Like it or not, get your poop hot or not, and accuse me of denigrating the
USA or not,
only a fool avoids the facts. The American auto industry is headed for
both because of international competition, because of organizational
of producing what the people don't really want to buy, and **worst of all**
cheap fuel situation here is a thing of the past.
Last year the dollar was half the value it was two years ago so a lot
of people started to import cars from USA
Now they have arrived the proud owners are not so proud anymore
The cars that arrived needed a lot of repairs
The cars are a lot more expensive to run than similar cars from Japan
So the cheap cars from USA turned out to be just that - cheap
Absolutely. The dollar was cheapened deliberately so that foreigners could
buy our products easier. It also was intended to make it harder for us to
The dollar always falls in value when the interest rates go down. Now the
Fed has started upwards again, and the dollar will inevitably strengthen.
US exports will fall, and foreign imports will again become easier for us
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