02 June 2006

Auto market growth

Just take a look: Toyota and Honda, along with other Asian auto makers picked up 40% of the American auto buying market during times when fuel economy is at the forefront of consumers’ minds.
Meanwhile, with gasoline hitting around $3 a gallon, U.S. automakers continue to push gas guzzling SUVs and pick up trucks.
While the U.S.-based auto makers continue to lead in the market share area, they dropped to a low of 52.9%.
Industry sales for May dropped 4.6% compared with 2005, according to Ward's InfoBank. Car sales rose nearly 2%, but sales of SUV's, pickups and minivans fell 10.2%.
Toyota took 15.9% of the U.S. market in May, when its sales rose 12.3% from 2005.
This is hardly a discussion about “them vs. us.” Good for Toyota and Honda. They obviously can take a look at forecasts and trends and then react to a change in the environment. Their companies are models of a nimble manufacturing enterprise.
On the other hand, we have GM and Ford, the two main U.S. auto companies. These firms seem to have an incredibly difficult time just staying out of their own way these days. It remains baffling to see management seems stifled by its own internal processes and can’t shake loose.
These are truly two great companies that hopefully one day will start to see the light and run their business accordingly.
Talk to me.

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