>>> In light of recent discussions regarding the domestic automakers
>>> loosing market share, I found this article interesting:
[quoted text clipped - 54 lines]
> cross roads regarding their future viability as players in the
> domestic auto market.
All true. Detroit needs to change its collective core mindset to come
out of this. Ironically, DC may be the only one of the three that
survives (or survives the longest), as they've already "morphed".
I think the world is poised on the edge of economics like we've never
seen before.
Michael Johnson, PE - 03 Aug 2006 03:08 GMT
>>>> In light of recent discussions regarding the domestic automakers
>>>> loosing market share, I found this article interesting:
[quoted text clipped - 55 lines]
> out of this. Ironically, DC may be the only one of the three that
> survives (or survives the longest), as they've already "morphed".
DC is really "D" owns "C". If that merger had not occurred I wouldn't
be surprised if Chrysler was flirting with bankruptcy again. Their car
line was aging fast and it looked like they didn't have the ability to
develop a new one fast. The Mercedes chassis' and drive trains have
been a big boost for their sales.
> I think the world is poised on the edge of economics like we've never
> seen before.
It is truly a global economy. The bright side is it should decrease
wars between nations. After all, why would China destroy its largest
buyer for its products. ;)
Joe - 04 Aug 2006 02:24 GMT
>>>>> In light of recent discussions regarding the domestic automakers
>>>>> loosing market share, I found this article interesting:
http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html
>>>>> Toyota has passed Ford for the first time in monthly sales volume.
>>>>> Who would have thought that this was possible 10-20 years ago? I
[quoted text clipped - 58 lines]
> develop a new one fast. The Mercedes chassis' and drive trains have
> been a big boost for their sales.
Agreed. But it's deeper than that. DC is certainly more of a "global"
company with an ever-increasing "global" outlook than GM or Ford.
>> I think the world is poised on the edge of economics like we've never
>> seen before.
>
> It is truly a global economy. The bright side is it should decrease
> wars between nations. After all, why would China destroy its largest
> buyer for its products. ;)
Well, right now we're seeing first hand how thick-headed some of these
nations are. And I'm certainly not discounting the U.S.
NoOption5L@aol.com - 03 Aug 2006 03:46 GMT
> > They can turn it around but it will take some thinking that is way
> > outside the box for Detroit. I still think they are in denial about
[quoted text clipped - 6 lines]
> > cross roads regarding their future viability as players in the
> > domestic auto market.
> All true. Detroit needs to change its collective core mindset to come
> out of this. Ironically, DC may be the only one of the three that
> survives (or survives the longest), as they've already "morphed".
Joe, DC hasn't fully "morphed". They are also back on the ropes. The
evidence is despite a return to employee pricing for all, sales have
continued to fall. Their "300 magic" seems to be wearing off...
Patrick
Joe - 04 Aug 2006 02:22 GMT
NoOption5L@aol.com wrote in news:1154573181.154355.232080
@s13g2000cwa.googlegroups.com:
>> > They can turn it around but it will take some thinking that is way
>> > outside the box for Detroit. I still think they are in denial about
[quoted text clipped - 16 lines]
>
> Patrick
By "morphed" I mean "teamed up with" a foreign maker. It's in both
Mercedes Benz' and Chrysler's interests to watch out for each other.
The "300 magic" isn't so much a factor as increased fuel costs along
with outrageous labor and insurance costs. GM and Ford are suffering
from the same maladies.
The thing that Chrysler has going for it now is that they have MB
looking over their shoulder, whereas GM and Ford don't have such a
strong foreign influence - yet. Time will tell.
> >> In light of recent discussions regarding the domestic automakers loosing
> >> market share, I found this article interesting:
> >> http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html
> >> Toyota has passed Ford for the first time in monthly sales volume. Who
> >> would have thought that this was possible 10-20 years ago? I wonder how
> >> long it will be before GM is overtaken.
> > Not long. Though Toyota is now experiencing some growing pains...
> > recently they've had a rash of quality issues that are bitting them in
> > the a.s.
> > For Detroit, the key problem is a whole generation of buyers, who were
> > raised on imports, are now entering their peak buying years. These
[quoted text clipped - 10 lines]
> > Is this a bleak picture? Yep, but I truely believe that's what it's
> > going to come to.
> There is one component you left out. Detroit is now paying the price
> for ignoring the economy and mid size car market to push out one
> SUV/truck after the other. If you look at the second link I gave to
> Joe's response, Ford's car sales fell just 6.7%. The truck and SUV
> market is tanking.
And what percentage of their sales is their truck/SUV markets? What...
50%? Now erase a percentage of those sales, and add a still eroding
car market and what are you left with? My answer is not much. Sure,
they'll continue to sell some trucks/SUV and cars, but I'm telling you
their core, their very heart -- enthusiast products -- are either going
to make or break them. These products, and the way they design them
and build them, are either going to grow and the enthusiasm behind them
spread to their other product lines or, without mergers, Detroit will
eventually go under.
> They have ignored their car lines and now when
> buyers are switching back from SUVs and trucks their first reaction is
[quoted text clipped - 3 lines]
> that is paying huge dividends for them. It will take a miracle for Ford
> and GM to stop the Toyota juggernaut.
You say miracle, I say passion. They will get smaller, much smaller,
but the passion that drives Team Mustang and Corvette is the maker
breaker. (Cadillac & Hummer have a foundation for success.) Either
they build comparable teams for each of their product lines or it's
game over.
> Also, I don't see Ford or GM surviving on specialty vehicles. The sales
> volume on these cars/trucks isn't nearly enough to sustain even a
> mediocre sized automaker.
Corvette and Mustang couldn't do it alone, but with the help of
Cadillac, Hummer, Solstice-type offerings, GTO, Camaro, and Ford with
SVT and hopefully a revitalized Focus, Lincoln and/or Mercury, plus
some other car and trucks slaes I think they could. I mean there are
other automaker makers out there right now surviving on fewer sales.
Bottomline: GM and Ford are going to, and going to have to, shrink, a
lot.
> My big prediction is that Ford is going to
> see their F series truck sales numbers erode to the Japanese. They have
> figured out what the American truck buyer wants like V-8's, size etc.
> and they are giving it to us in spades. If Ford looses much of its
> truck market share then I don't see how they will survive on their own.
With all the new players jumping into the truck market, it's inevitable
Ford and GM's share will shrink. People like variety and choices, so
some are natually going to sample and drift to other products. (Think
Mustang sales in the 60s.)
> They can turn it around but it will take some thinking that is way
> outside the box for Detroit. I still think they are in denial about
> what the Japanese are doing to them. I see GM just cranking out the
> same old boring sh.t year after year.
I see GM doing much more than Ford. For truly exciting products, Ford
has been reduced to just the Mustang. At least GM has the Vette,
Hummers & Cadillacs (and I'd add the GTO). Plus, GM has some neat
products in the pipline. I haven't seen or heard about anything neat
that Ford has coming... that is besides new Mustang varieties. They
seem to think rebadging their Lincolns with alpha characters is the way
to go.
> IMO, Ford has some decent cars but their marketing effort absolutely sucks. Every time I see a "Bold
> Moves" commercial I feel like I am watching paint dry. The Mustang
> commercials do strike a chord with me but that is where it ends and that
> won't sell me a Ford 500. I do feel like Detroit is at a major cross
> roads regarding their future viability as players in the domestic auto
> market.
I agree. It's time they start moving forward or they'll go down the
tubes. I just hope they tap their Vette's and Mustang's passion to get
the rest of thier products spinning in the right diection...
Patrick
Michael Johnson, PE - 03 Aug 2006 20:31 GMT
>>>> In light of recent discussions regarding the domestic automakers loosing
>>>> market share, I found this article interesting:
[quoted text clipped - 38 lines]
> spread to their other product lines or, without mergers, Detroit will
> eventually go under.
The point I was making is Ford has neglected their car side for too long
and now when they need those sales to keep volume up they aren't there.
Toyota, Honda, Nissan etc. never let their car line languish and
become stale. If you took all of Ford's enthusiast cars/trucks I bet
they wouldn't add up to 300,000 units. Take out the Mustang and there
is hardly anything at all. Ford has abandoned their bread and butter
models like the Taurus, Escort, etc. and, IMO, with it they have killed
their identity with millions of potential buyers. Now they are trying
to sell models that no one is familiar with and it is killing them. If
they would bring out a Taurus they would probably sell 100,000+ of them
just because of the name alone.
>> They have ignored their car lines and now when
>> buyers are switching back from SUVs and trucks their first reaction is
[quoted text clipped - 9 lines]
> they build comparable teams for each of their product lines or it's
> game over.
They can only get so small before they cease to be a viable automaker.
I just don't see the majority of the public as closet enthusiast car
buyers. You and I are not the norm. We are the rare exception. ;) The
bulk of the public are meat and potatoes car buyers. For proof just
look at Toyota's car line. It is bland as milk toast but that doesn't
stop their mark to the top.
>> Also, I don't see Ford or GM surviving on specialty vehicles. The sales
>> volume on these cars/trucks isn't nearly enough to sustain even a
[quoted text clipped - 5 lines]
> some other car and trucks slaes I think they could. I mean there are
> other automaker makers out there right now surviving on fewer sales.
True but they were never as large as GM, Ford or Chrysler. I don't
think they will shrink. They will get gobbled up by the winners.
> Bottomline: GM and Ford are going to, and going to have to, shrink, a
> lot.
An elephant can only loose so much weight before it dies and/or gets
eaten. :)
>> My big prediction is that Ford is going to
>> see their F series truck sales numbers erode to the Japanese. They have
[quoted text clipped - 6 lines]
> some are natually going to sample and drift to other products. (Think
> Mustang sales in the 60s.)
Those new players really aren't that new. The Japanese have been
pecking away at the full size truck market for a long time. They just
recently have found the formula to really take a big bite out of
Detroit. Full size trucks was the last segment that Detroit owned
outright. In 5-10 years I bet the Japanese will own the personal truck
segment like they have done with the compact truck market. I think
construction related sales will remain a mostly domestic market.
>> They can turn it around but it will take some thinking that is way
>> outside the box for Detroit. I still think they are in denial about
[quoted text clipped - 8 lines]
> seem to think rebadging their Lincolns with alpha characters is the way
> to go.
I don't see either one getting anywhere with their car lines.
Personally, I think Detroit's main problem is more marketing related
than vehicle quality/content. The foreign auto makers are kicking their
a.ses and taking names.
>> IMO, Ford has some decent cars but their marketing effort absolutely sucks. Every time I see a "Bold
>> Moves" commercial I feel like I am watching paint dry. The Mustang
[quoted text clipped - 6 lines]
> tubes. I just hope they tap their Vette's and Mustang's passion to get
> the rest of thier products spinning in the right diection...
They are definitely going to have to take some risks with future car
models. Ford needs a "Taurus" type vehicle right now like they gave us
in the late 80s. The Taurus was an all or nothing move by Ford that
pulled them from the abyss.