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But don't forget Posted by Caarma [Email] (#592) [Profile/Gallery] (more from Caarma) on Wed, 9 Jul 2008 11:03:30 In Reply to: Absolutely agree, Noel, Wed, 9 Jul 2008 05:39:00 Members do not see ads below this line. - Help Keep This Site Online - Signup |
- People wouldn't pay much money for smaller American cars so the American car companies lost money on them, made it hard to justify new car programs
- The Big 3 have pension and healthcare costs which competitors don't have to worry about, (many hundreds of dollars per vehicle with which much can be done on a car)
- There are many more competitors in the U.S. now so some loss of marketshare is to be expected, (but not this much)
- GM sells the most mid-sized cars of any manufacturer in N. America, but because they're offered in many models resulting in more variety, they get dinged for it.
- Many people are repeat buyers of Big 3 products (including cars) so not everyone is unhappy or thinks their products suck
- The press likes to focus on the negative aspects of the American companies and it affects sales and word-of-mouth reputation
- Most American corporations seem to be shortsighted, focus on quarterly shareholder returns, not just car companies
- European cars (in all segments) can command much higher prices. Nobody here would pay $30,000 for a VW Golf, but don't they in Europe on a regular basis because they have to? A Mercedes taxi would be way too expensive here.
- GM sales are doing very well in Europe and China so they have to be doing something right
- Daimler may be to blame for many of Chrysler's problems, too much focus on trucks and powerful engines
- Thanks to currency manipulation and trade restrictions, the Big 3 don't have nearly as much access to Japan as the Japanese manufacturers do to the U.S.
Management should take a lot of the blame, but to say that it's all the car companies' fault is oversimplifying matters and is not fair.
Atul
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