Business

What's Good For Toyota Is Good For The Country, And Vice Versa

port1080.

Posted to Business on Thu Apr 26, 2007 at 07:09:34 PM EST (promoted by 1fastdog). RSS.

Preliminary reports suggest that this year, for the first time, Toyota's worldwide sales will top that of US automaker General Motors, prompting our own tomc to offer up our headline by reinterpreting Charles Wilson's oft-quoted phrase "What’s good for the country is good for General Motors, and vice versa" (which some believe to be true), to include Toyota in place of GM.

In preliminary numbers for the first quarter of 2007, Toyota sold 2.35 million cars, beating out GM's 2.26 million. GM's troubles go far beyond Toyota's surging competition; the company has been substantially in the red the last few years and is locked into long-term labor contracts with many of its American employees. Other American car companies are feeling the heat as well. Daimler-Chrysler rolled out an aggressive restructuring plan for its Chrysler unit early this year, including the closing of eight plants. The company has since put the entire Chrysler brand on the market, with a Canadian auto-parts supplier, a private investment conglomerate, and billionaire Kirk Kerkorian all making offers. Meanwhile, the smallest of the big three, Ford Motor Company, has seen a sales drop of almost 9% this year.

Is the American automotive industry almost out of gas, or is this round of consolidation just another example of the business cycle at work?

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Tags: written by port1080, edited by 1fastdog, Toyota, General Motors, business, cars, sales (all tags)
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5

Re: What's Good For Toyota

tomc.

Thu Apr 26, 2007 at 09:42:47 PM EST

5.00 (interesting)

Of course, US automakers have been concentrating on SUVs while Toyota has been concentrating on more sensible vehicles.  While that in itself may be a virtue for Toyota, the business angle is trying to predict when one trend gains serious momentum and another one is about to fall.  SUVs and pick-up trucks were sure bets not too long ago, but both have fallen out of favor with consumers.

Besides, what makes a car American?  Stuffy types like myself look at where the profits go, but the fact is there is so much manufacturing and assembly being done in the US, Toyota cars and trucks have more US made parts in them than some models offered by the big three US automakers - buying local in Alabama now means buying a BMW.

1

Re: What's Good For Toyota Is Good For The Country

thefadd.

Thu Apr 26, 2007 at 07:27:43 PM EST

none

What's saddest just may be how much of the American economy is resting on Matt Millen not screwing up the Detroit Lions draft this Sunday. We're SO fucked.

make it rain you nappy headed ho's

2

^ 1

Re: What's Good For Toyota Is Good For The Country

zyxwvutsr.

Thu Apr 26, 2007 at 07:58:15 PM EST

none

Okay, I give up. What has football got to do with the economy?

3

^ 2

Re: What's Good For Toyota Is Good For The Country

thefadd.

Thu Apr 26, 2007 at 08:54:36 PM EST

none

The Detroit Lions are owned by the Ford family of Ford Motor Company. They've been unable to spend much because of the falling fortunes of the car company. Mostly, though, they've sucked because (as virtually everyone in football agrees) Matt Millen is one of the worst General Managers in all of sports. Now he has the #2 pick in the draft. If he can use it to turn the team around, they can get their cash flow up and be less of a drag on the parent company.

make it rain you nappy headed ho's

4

^ 3

Re: What's Good For Toyota Is Good For The Country

zyxwvutsr.

Thu Apr 26, 2007 at 09:12:58 PM EST

none

The team is owned by the Ford family or the Ford corporation?

6

^ 4

Re: What's Good For Toyota Is Good For The Country

thefadd.

Fri Apr 27, 2007 at 02:38:17 AM EST

none

While I don't know the details of their business, the football team is chaired by William Clay Ford, Sr. while the car company is chaired by William Clay Ford, Jr. I don't know if the funding for the team is dependent upon the company or the money that Sr. gets from the company but I do know that expenditures have dropped precipitously as the car company has done worse and worse so I would assume that if the football team were able to garner additional income on their own, it could only be less of a drain on the car company.

make it rain you nappy headed ho's

7

Straw Pole

thefadd.

Mon Apr 30, 2007 at 01:33:00 AM EST

none

Since we're 4 days in with 6 comments -- do you own a car and if so, what car and do you like it?

Let me poison the response pool by reiterating that the only cars more devilish to my commute time than GMs are camries.

make it rain you nappy headed ho's

8

^ 7

Straw Poll

thefadd.

Mon Apr 30, 2007 at 01:33:48 AM EST

none

correction or whatever

make it rain you nappy headed ho's

9

^ 7

Re: Straw Pole

tomc.

Mon Apr 30, 2007 at 11:29:56 PM EST

none

I own a car.  I never wanted to own a car.  I bought my first car when I was 30 years old.  Insurance companies didn't want to touch me, because even though I had a clean driving record, it was unusual for a guy to not own a car  (and then all of a sudden want one, I guess).  

I'm a big believer in public transit, but my new job at the time would have meant a 3 hour commute (one way) by light rail and bus.  So the car happened.

I've never owned a North American car.  My first car was a used '84 Camry  (I bought it in '87).  

10

^ 7

Re: Straw Pole

zyxwvutsr.

Tue May 01, 2007 at 01:26:21 PM EST

none

I've owned a Ford, a Jeep, a Hyundai, and a Honda. I've also had a Ford and a Chevrolet given to me to use long-term, i.e., company cars.

I'll never buy American again.

11

^ 10

Re: Straw Poll

thefadd.

Tue May 01, 2007 at 02:43:00 PM EST

none

I've only ever had American cars as rentals and based on that, I would never in a million years pay even $5 for one. The Ford Taurus, you had to hold the steering wheel to keep it steady and I felt like I was driving in a box of tinfoil on a wooden log. I will say the Dodge Magnum didn't suck but I don't really want a station wagon. I've had an 89 Honda Civic, a 2000 Mazda Protege, and a 95 Jeep Cherokee and been happy with all three.

make it rain you nappy headed ho's

12

^ 11

Re: Straw Poll

tomc.

Tue May 01, 2007 at 02:51:05 PM EST

none

The Ford Taurus, you had to hold the steering wheel to keep it steady

Dude, you should always hold on to the steering wheel while driving.

13

^ 12

Re: Straw Poll

thefadd.

Tue May 01, 2007 at 10:59:30 PM EST

none

I mean like, really, really hold it tight to keep it from flipping back and forth in either direction like a dying fish...not like just kinda keeping your hands there so it doesn't slowly veer in one direction.

make it rain you nappy headed ho's

14

^ 7

Nope

uncarved block.

Wed May 02, 2007 at 06:04:28 PM EST

none

   I've owned a car once- a '71 Dodge Dart that I got for $100- but seeing that I never learned how to drive, it gathered dust. Been lucky, I guess, in that I've never had to commute more than three miles for work. Sadly, it's because I've been single, so I could just move close to work without a fight :(
   At this point, I think I'm hopelessly addicted to the lack of $$$ I have to spend on a vehicle Insurance, tags, maintenance, gas-- add it all up, and I may be living 5-6K a year over my actual salary. Of course, biking in six inches of snow, or 20 degree weather, was no fun, but I could always pretend I was following Thoreau somehow. It has probably helped my health; only one serious illness in 15 years (ten of them working in a nursing home!), and I think the reason is all that effort spent in bad weather. Simply put, I was always "in tune" with the weather, so changes in temperature didn't stress my immune system. Or maybe it was dumb luck . . .
   You do develop a serious hatred of motorists, though.

Ex ignorantia ad sapientiam; e luce ad tenebras

15

^ 14

I think I'll take the bus tomorrow

thefadd.

Thu May 03, 2007 at 12:39:16 AM EST

none

The times I commuted with public transit on a consistent basis were the happiest periods of my life. Taking the bus or the subway made me feel like I was actively doing something and that I was connected to my fellow commuters. I felt more independent and free, like I could go anywhere and get anything done. It's driving a car makes me feel tied down and boxed in.

make it rain you nappy headed ho's

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