After I voted, I read the Forbes article (http://www.forbes.com/lifestyle/vehicles/2004/09/13/cx_dl_0913feat.html) and found some very disheartening tidbits:
"GM may still sell more cars than any other automaker, but Toyota's market capitalization--the value of its stocks--is ordinarily about $80 billion to $100 billion more than its closest competitor. At press time, Toyota's market cap was $128 billion, compared with $26 billion at Ford and $24 billion at GM. We constantly hear talk on television about how the U.S. is the world's last superpower, but Toyota could buy this country's two biggest automakers--two of its biggest companies overall--without going to the bank. "
...and...
"The incentive-laden sales strategy of the American automakers has taken its toll since it came about in response to the sales drought after Sept. 11, 2001. DaimlerChrysler's Chrysler division lost $496 on every car it sold in 2003, compared with $48 at Ford. GM made a profit of $178 per vehicle, a measly total compared with per-car profits of $1,488 at Honda Motor, $1,742 at Toyota Motor and $2,402 at Nissan Motor."
So... not only are the U.S. automakers significantly weaker (from a financial health perspective), they are losing about $1,600 - $2,200 per vehicle sold to Toyota.
Now, they are bring a lot of new cars to the market (300, Mustang, etc.), but are these going to be enough to stop the hemorrhaging? I just don't know.
"GM may still sell more cars than any other automaker, but Toyota's market capitalization--the value of its stocks--is ordinarily about $80 billion to $100 billion more than its closest competitor. At press time, Toyota's market cap was $128 billion, compared with $26 billion at Ford and $24 billion at GM. We constantly hear talk on television about how the U.S. is the world's last superpower, but Toyota could buy this country's two biggest automakers--two of its biggest companies overall--without going to the bank. "
...and...
"The incentive-laden sales strategy of the American automakers has taken its toll since it came about in response to the sales drought after Sept. 11, 2001. DaimlerChrysler's Chrysler division lost $496 on every car it sold in 2003, compared with $48 at Ford. GM made a profit of $178 per vehicle, a measly total compared with per-car profits of $1,488 at Honda Motor, $1,742 at Toyota Motor and $2,402 at Nissan Motor."
So... not only are the U.S. automakers significantly weaker (from a financial health perspective), they are losing about $1,600 - $2,200 per vehicle sold to Toyota.
Now, they are bring a lot of new cars to the market (300, Mustang, etc.), but are these going to be enough to stop the hemorrhaging? I just don't know.