GM’s solution clear as mud

The price for gas is sure not coming down anytime soon and all you see sitting in used car lots when you drive by are trucks and SUVs because people are trading them in quicker than a fox running from a hound.
So, where should the major auto companies focus in the coming model year? Why trucks of course. That’s right, trucks. General Motors is rushing a new line of full-size pickups to showrooms in the hopes of strengthening its turnaround effort.
What are they thinking?
G.M. introduced its 2007 Chevrolet Silverado and GMC Sierra and said the trucks would begin arriving at dealerships in October, 13 weeks ahead of the original schedule. The company’s Chief Executive, Rick Wagoner, called the new trucks “the most important part of our North American turnaround plan.”
Yikes. Gas guzzling trucks the most important part of the turnaround plan? Yes, trucks are hugely profitable, but come on, are they going to be as popular now that gas is hitting $3 a gallon?
Meanwhile, this news comes on the heels of other news about Toyota and Honda moving ahead of Ford and DaimlerChrysler in the U.S. auto market. No big surprise. Let’s face it Toyota and Honda seem to be listening to the marketplace and continue to put out quality product that people want to buy.
Auto sales in the U.S. fell 14% year-over-year. Sales for General Motors fell 19.4%, Ford was down 31.7%, and DaimlerChrysler dropped 31.5%, from year-ago sales levels.
In comparison, Toyota grew 16.2% and Honda increased 10.2%.
Hopefully, Ford, GM and DaimlerChrysler will soon get in touch with the marketplace and learn the nimble, agile ways of this era.
Talk to me.