Saturday Edition
A couple of months ago Consumer Reports named Japanese cars as best in all 10 categories considered. A couple of weeks ago it was reported that for the first time Asian market share exceeded 40%. Yesterday Toyota announced they'd sold their 500,000th Prius.*
Comments?
(*But unlike "Chairman Chicken" Nardelli at Home Depot, Rick Wagoner at GM, usually one of my favorite punching bags, did show up with his Board to face the music—think "Stomp"—at the Annual Meeting.)
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Comments
It would be interesting (maybe surprising) to get a view of how many of the cars sold in the US are also manufactured in the US. Then get a view of the labor costs per car manufactured in the US for Toyota compared to GM/Ford.
I feel for the US automakers, who are burdended with the baggage of their union history. The nasty downward spiral of the impact of healthcare and retirement costs for US employees is self destructive to the carmakers and ultimately the union, affecting all current and potential future workers.
Posted by Bryan at June 8, 2006 10:27 AM
Why I am a Toyota bigot:
1. I own a 2000 Corolla with 172,000 miles on it (long commute). It's been in a few fender-benders (not my fault); but, other than those repairs, my only expenditures have been for maintenance. In an average week, it gets 39 to 41 mpg.
2. Previously I owned a 1985 Corolla, which I kept for a few months after buying its successor, and finally sold to a co-worker who needed cheap transportation. It had racked up 245,800 miles by then, but I still see it around town.
3. My first Corolla was a 1974 that I drove for 11 years, the last 6 in Silicon Valley. I put only 110,000 miles on it, but most of that was city driving.
All three of my Toyotas have been reliable, cheap to run, and, with appropriate maintenance (which I'm a stickler for), virtually trouble-free. When American manufacturers can come up with an equally good car, I'll buy it.
(Footnote: it's not the fault of American workers -- my current Corolla was manufactured in Kentucky!)
Posted by Paula at June 8, 2006 10:41 AM
Seems most CEOs and management of foreign car companies are USA citizens and/or educated?
Seems like the socialism inherent in GM for example of lucrative union driven pension funds and healthcare vs. Toyota / Honda / Nissan non-union & min frills culture is 1 prime competitive advantage. Agree though that much more is involved like innovation & anticipating customer desires & focus on precision PARTS making.
Posted by Sean at June 8, 2006 11:16 AM
I like the anti - buureaucratic theme. For the finest bureaucrats in Canada, please see "Petro Canada".
Posted by Paul Cox at June 8, 2006 12:47 PM
How many different engines does Honda make for their car line?
How many different engines does GM make for their car line?
Hmm. If more attention was paid just to this issue (fewer, more refined engines), they (domestic automakers) could reclaim lost market share and then...gasp!...stocks would go up.
Posted by tango5 at June 9, 2006 7:21 AM