Toyota > King (GM and Ford going down)

Chaps n Chapesses,

That Yankee posting about V8s came back into my head when I was reading City AM on the train. Funny that GM (Olds Motor Vehicle Company founded in 1897 by Ransom E Olds which became a unit of newly organised GM in 1908) which makes Buick, Pontiac, GMC, Chevrolets and light trucks may not make its centenary in 3 years time cos its likely they'll file for Chapter 11 bankruptcy very soon.

Ford, like GM, also had their bonds downgraded to junk status a few months ago.

GM have serious problems - they pick up the healthcare costs for 750,000 American employees, retirees, and dependants - HUGE when there are only 110,000 currently working. GM sold 26% fewer cars in October especially as all time high petrol prices in the US see them buying more 'economical' cars instead of SUVs and its cash pile of USD26bn could disappear if workers strike (Chapter 11 in the US allows US companies to hammer worker packages without threat of legal action). They also have a USD11bn pension deficit and could end up with Delphi's liabilities (spun off in 99).

Toyota are poised to take the crown as largest car manufacturer in the world. Asian car makers are offering discounts of USD1,247 vs GM at USD3,062 and Ford at USD2,820 and DiamlerChrysler's North American arm at USD3,075.

The Yankees are losing their grip on car manufacturing. GM will chug along under Chapter 11 - the government will simply keep pumping it full of cash - just like it does with their domestic airlines to prevent fair competition from overseas.

Easy,

D

dont GM own Vaxhall and Opel??

aye. believe they do. the cavalier i own is better than the vectra!

Its sad that due to fuel prices even in America the home of Super sized cars and SUV's, people are having to buy smaller cars.

prolly so next time 10,000 tanks get stuck in a line escaping Katrina they dont end up wondering why their gas runs out after 50 miles.

Hardly surprising is it? The Far Eastern automakers have a totally differenc philosophy. They are willing to make long term plans and stick to them to corner a market (remember how cheap and cheerful "Jap Crap" used to be?) They invest and innovate (Toyota still loses money on every Prius made). They diversify. And above all, their employees carry the honour and pride of the company with them, and will work to the ends of the earth so that their company succeeds.

How on earth can you compete with that?

aye - reason i like these cars is that with the Soop, rx-7, and Skylines, you can trace their development. learning lessons, refining, adding, taking away - the car evolves. the big blocks in the US gain more power by erm...making a bigger block...

And above all, their employees carry the honour and pride of the company with them, and will work to the ends of the earth so that their company succeeds.

compare that with the attitude of UK owned Austin etc in the 1950s. Factory staff would literally clock off mid way through making a car...

staff who worked for the major uk companies did not care, all Japan really ever had to do back then was make 'some' quality cars, and give a little customer service.

job done!

not the best write up there, but its nearly midnight!

Jap cars are the way forward. Did you see the results of the top gear survey? 15 of the top 20 are from Japan.

wish they did a survay on 1990's sports coupes