Wednesday, October 04, 2006

US automakers still dropping in sales

And Toyota is picking them up.

Toyota Motor Corp. trounced the domestic automakers in the U.S. marketplace last month, posting a 25 percent year-over-year sales increase. General Motors Corp. and DaimlerChrysler AG each saw their sales slip by a few percentage points, while Ford Motor Co.'s sales gained 4.7 percent.


They better get their acts together!

5 comments:

Xanthippas said...

I'd heard recommendations that they cut even more jobs and trim expensive programs, so look for some more layoffs in the not too distant future.

Fan Boy said...

The problem is that Toyota can make a vehicle cheaper than Detroit right here on US Soil. They on average spend 1,200 less per vehicle at production to sales floor.

This means Toyota has better agreements with Organized labor and they don't deal with AAMU which spells trouble for these overpaid union workers.

Nat-Wu said...

Well, Toyota can make a car cheaper for lots of reasons. They do pay their employees one of the highest wages in the industry, union or no. The Japanese really still excel at streamlining processes and maximizing profit. And it could be that they're selling what Americans want to buy instead of what they want Americans to buy, which is the tactic the big 3 have been taking for over 50 years now.

Fan Boy said...

True - but in a competitve market, when you product is the highest priced and no real seperation of standards your shelf life is longer, operating income shrinks, and jobs get cut.

Toyota has a high level of satisfaction because they have a management system that enjoys good relations with employees. That will one day end.

In the mean time payroll yes they pay high, but they are free to fire employees who aare unproductive, they are free to regulate their own health care cost, they are free to manage resources, through that lense they are paid less and employee cost to company percentages are lower.

Nat-Wu said...

Your last statement is quite true and why I think union's are essential to the functioning of a good marketplace. If Toyota had union costs, perhaps their cars would be just as expensive.