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View Diary: Dollar Still Falling, Nears All-Time Lows (169 comments)

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  •  Toyota is claiming to have outsold GM... (9+ / 0-)

    ...during the first quarter of CY07:
    http://www.freep.com/...

    Ouch. It looks like Detroit is never going to figure out the lessons it needs to learn about quality, customer service, and product desirability before it is too late.

    That means Michigan is basically screwed as a state. Look for much, much more ugliness up that way.

    Welcome to the New AND Improved World Order! Now with 110% MORE One World Government!

    by bluewolverine on Tue Apr 24, 2007 at 04:41:12 AM PDT

    •  Didn't the London exchange overtake (0+ / 0-)

      New York in value?

    •  Not surprising. (1+ / 0-)
      Recommended by:
      bluewolverine

      When I look in the newspaper the Toyota dealers advertise $2,000 discounts on $32,000 MSRP vehicles, and less on less expensive vehicles.

      The $32,000 MSRP Dodge (Daimler-Chrysler) vehicles are $11,000 off, and the Chevies (GM) are only a little less off.

      You know something is wrong when Chevy dealers are selling the bottom of the line Aveo (with a MSRP just under $10,000) for just under $6,000.

      Why not buy American for less?  For one thing, the extra fuel cost of most American cars over the life of the vehicle erode much of their price edge.  Some of the rest of that deficit is made up of an allowance for greater repair costs over the life of the vehicle.

      The quality differences are real.  When I rent an American car, usually quite new, I'm always shocked at how many maintenance and quality issues they have -- loose and noisy assemblies, shot brakes in a car that has only been driven 20,000 miles, you name it.  The competition doesn't have that problem.

      As a result, American cars simply are not able to command a comparable price on the dealer's floor, cutting into profits at the revenue end.  And, every time American cars lose market share, the legacy cost per vehicle rises, cutting into profits at the cost end.  This is not a recipe for profits, and without profits companies die.

      Trying to keep a bewildering array of name plates going doesn't help control costs either.

      Under GM, Ford and Chrysler can get in the good graces of Consumer Reports by building cars that good good gas mileage for their class and have decent reliability, they are going to continue to see sales fall, more layoffs and other problems.

      A weaker dollar helps, but only a partially, because "foreign" car makers have moved a lot of their production facilities to the United States, something that also proves that the quality gaps of the Big Three aren't a problem with American workers, they are a problem with corporate management culture.

      "Those who can make you believe absurdities can make you commit atrocities" -- Voltaire

      by ohwilleke on Tue Apr 24, 2007 at 08:54:08 AM PDT

      [ Parent ]

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