Question:
Why is Ford, GM, and Chrysler failing while, Toyota and Honda are gaining ground in the US Auto industry.
Answers:
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Unfortunately the "Big 3" blindly got caught up in a mentality that they would always dominate the auto industry and were just too slow to respond to changing markets and conditions..well, Maybe a $.16 difference.that's what the 'Duh' is all about...they've run us us nuts HuH?
After the oil crisis in '73, smaller more economical Japanese vehicles started impacting the market and the U.S. auto manufacturers responded by going cheap on their manufacturing process and produced some really poor quality cars during the late 70's and early 80's.
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Because of that situation, during a time when domestics were still at the top of the sales chain, GM/Ford/Chrysler are today fighting a quality percerption problem. Honestly if you look at the TSB's for Toyota vs GM, Toyota really isn't significantly better than GM...I would put the LS series engines up against anything the foreign guys have to offer.but non the less the public "thinks" domestic autos are junk and Japanese are great, and the sales reflect that.
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Another factor, the Big 3 all have existing UAW contracts they have to work with (another area they were too slow to change with - please do NOT read that as me blaming the unions, I am not.) The foreign automakers can afford to open new assembly plants here because they are negotiating fresh union contracts - that gives them a significant advantage.
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One other factor, the domestic auto makers have invested heavily in a deep profit market in pickups and SUV's, which get poor gas mileage compared to something like a Honda Civic. With gas prices headed towards $4/gal AGAIN this year, people are just simply not buying those vehicles and it is really cutting into the profits of the Big 3.
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people are idiots and will buy whatever is cheap, not caring about reliability or future impact(losing their job becuase their company failed).American cars became junk in the 60's and held that honor till the 70's when they saw that foreign cars were wiping their behinds with their quality. They have improved but have not been able to convince the American public of it. Americans don't seem to understand they are causing the auto plants to close they buy foreign cars.
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GM is getting better by the minute, almost catching up with Toyota's sales. Ford seems to be doing worse, however they may be joining with GM. Daimler is trying to sell off Chrysler to another company, an Asian company or GM. American companies aren't doing THAT bad....What would you rather have????
By the way.. Toyota and Honda aren't gaining ground. they already lead the auto industry. People think because they're Japanese, they're better cars and a better value. Not neccessarily true.
parasitic (insert your favorite organization here)bled them dry with unrealistic demands.
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