If you were objective, you would look at the last ten years and watch how GM has lost market share year after year after year. American
I AM objective and while GM has lost market share that is not the reason they're in the jam they're in.
In the first place, they have lost market share for various reasons. It isn't all loss to Toyota. They have lost market share, NOT because of the vehicles they're building, but because the United States is a much more competitive market place for autos than it was in 1980.
Whereas, in 1980 we had essentially six automakers in play (GM, DCX, F, Honda, Nissan, and Toyota), today we have many more -- including Hyundai as well as larger positions by European and other manufacturers. In addition, as each has learned from GM, it pays to have multiple product lines. So, we've ended up with the original six competitors plus Infiniti, Scion, Lexus, Acura, Hyundai, Kia, and tons of European companies competing for 16 Million new cars each year.
In addition, new car prices have gone up to the point where Americans are ROUTINELY financing them for 72 months and leasing them for 24 months. Financing for 72 months means you get upside down in the vehicle quickly and STAY that way until it is paid off. Meanwhile, leasing for 24 months means the market is flooded with used cars that are attractive to new car buyers.
To say that "GM has lost market share while Toyota has gained market share" is almost silly. Toyota introduce its luxury Lexus line, and of course it took 2% of the market -- and of course most of it came from Cadillac. Cadillac had no competition before. When a new competitor enters a market, do you think they're going to get NOTHING?
I'm not saying that market share isn't part of the problem, but it is unrealistic to think that when you double the number of competitors in a market, that when previously successful, yet, immature, competitors continue to thrive and mature, that they're not going to get market share.
These companies must learn to compete in the market they find themselves in. And you cannot compete in a market when your costs are substantially out of alignment with those of your competitors. Can't be done.
It has nothing to do with jets (Nissan's and Toyota's executives use corporate jets). It has LITTLE to do with market share.
The root cause of this problem is unwieldy union contracts that must be unraveled or these companies have zero chance of survival. This is what any objective observer sees. It is not, however, what pro-labor liberals see. |
