Toyota May Raise Prices To Help U.S. Makers
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Toyota May Raise Prices To Help U.S. Makers
I just saw this on nbc news and thought it was interesting and, at the same time somewhat sad for american auto makers...
The article can be read here
I'm just glad toyota is the only company thinking about this
OSAKA, Japan -- Toyota's chairman says the auto maker is likely to raise its prices in the U.S. to help ailing American competitors.
Hiroshi Okuda said that if the American auto industry collapses it may adversely affect Japan-U.S. relations. He said raising prices will make it easier for American auto makers to beef up their earnings.
Okuda reiterated his view after General Motors announced Tuesday that it will cut 25,000 jobs to reduce costs.
Honda has ruled out price hikes. It said such increases could be considered price manipulation under U.S. antitrust laws.
Okuda said auto makers can raise prices when they introduce new versions.
Hiroshi Okuda said that if the American auto industry collapses it may adversely affect Japan-U.S. relations. He said raising prices will make it easier for American auto makers to beef up their earnings.
Okuda reiterated his view after General Motors announced Tuesday that it will cut 25,000 jobs to reduce costs.
Honda has ruled out price hikes. It said such increases could be considered price manipulation under U.S. antitrust laws.
Okuda said auto makers can raise prices when they introduce new versions.
I'm just glad toyota is the only company thinking about this
Nothing works better than a Chris except a Honda.
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That also means that they'll earn more profit too... but they kind of need to do it also. The dollar is weak so they aren't getting as much as they used to get and they have been putting on rebates as well.
cause they break, my Uncle got a Jag 1 year ago, and its got some pretty major problems on it already, his trunk was rusting, and the front end is falling apart. 1 YEAR.....way to go Ford!
I agree that quality of North American cars are crap compared to Honda etc. Also, why are people not buying GM etc vehicles? Their designs are pretty boring if you ask me. I always put the looks/reliability first when buying.
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Rep Power: 338 One of the reasons why GMC is not doing so well is that they support so many americans in retire pension plans and their union contracts keep them in a bind for another 2 years. They also have to many product lines with to many vechicles to design/test/refresh. This leads to underdeveloped cars, less money spent on R&D per car, bland styling, and cars that don't get refreshed for ages (although buick and pontiac brands will be seeing some trimming in their lineup soon or their possible demise).
GMC also has to cut corners wherever it can. For example, the engineers wanted the Hummer H3 to be 6 inches wider to share a family resemblence with its H1 and H2 brothers, however, management at GMC cut those 6 inches to allow the H3 to be built on their small pickup platform (i think).
General Motors also has to many factories open around the United States. They need to close 2 or 3 of the factories down and increase production at the other factories, but they can't do this due to their union contracts. If they were to close down the factories, they'd face VERY large fines.
Another thing GM needs to do is redo their employee benefits. If i remember what i read correctly, part time GM employees have better benefits than their full-time employees.
What's been keeping GMC (and Hyundai) in business is their china operations. They pretty much had a close to 90% of the market in China, but not anymore. China is opening doors to more outside companies and making it cheaper for Chinese companies to make cars. Outside competition are bringing in smaller, more fuel efficient cars with gooky styling, compared to the larger GM vehicles with more bland styling.
The current GM CEO has to make some good decisions to bring GM out of their rut within the next 2 years otherwise the board of directors will be replacing him. They're content with him for now and his new business plan, but if it doesn't work, he's gone for sure.
GMC also has to cut corners wherever it can. For example, the engineers wanted the Hummer H3 to be 6 inches wider to share a family resemblence with its H1 and H2 brothers, however, management at GMC cut those 6 inches to allow the H3 to be built on their small pickup platform (i think).
General Motors also has to many factories open around the United States. They need to close 2 or 3 of the factories down and increase production at the other factories, but they can't do this due to their union contracts. If they were to close down the factories, they'd face VERY large fines.
Another thing GM needs to do is redo their employee benefits. If i remember what i read correctly, part time GM employees have better benefits than their full-time employees.
What's been keeping GMC (and Hyundai) in business is their china operations. They pretty much had a close to 90% of the market in China, but not anymore. China is opening doors to more outside companies and making it cheaper for Chinese companies to make cars. Outside competition are bringing in smaller, more fuel efficient cars with gooky styling, compared to the larger GM vehicles with more bland styling.
The current GM CEO has to make some good decisions to bring GM out of their rut within the next 2 years otherwise the board of directors will be replacing him. They're content with him for now and his new business plan, but if it doesn't work, he's gone for sure.
Last edited by cambo; Jun 9, 2005 at 12:40 PM.
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Rep Power: 338 I should note that Hiroshi Okuda realizes that the world needs General Motors to stay in business otherwise the economy would be devestated worldwide. If General Motors collapsed, think about how much of the american population that could effect. I'd be willing to bet that the US economy would drop drastically and the world would feel its effect.
http://www.caranddriver.com/article....rticle_id=9659
GM is like the airlines, if they don't do anything quickly and correctly, they're going to be in deep **** soon.
The chairman of Toyota Motor Corp. said he feared the possibility that U.S. policy could turn against Japanese automakers if American icons such as GM and Ford were to collapse, Reuters reported.
"Many people say the car industry wouldn't revisit the kind of trade friction we saw in the past because Japanese automakers are increasing local production in the United States, but I don't think it's that simple," Hiroshi Okuda told a news conference.
"General Motors Corp. and Ford Motor Co. are symbols of U.S. industry, and if they were to crumble it could fan nationalistic sentiment. I always have a fear that, in turn, could manifest itself in policy decisions," he said, speaking as the head of the nation's biggest business lobby, the Japan Business Federation, Reuters noted.
Both GM and Ford have lost sales to Asian brands led by Toyota, which now controls 13.4 percent of the U.S. car market, the world's biggest, the story said.
In related news, the Dow Jones/AP newswire reported that Toyota may boost its vehicle prices to make it easier for the American automakers to compete.
"Many people say the car industry wouldn't revisit the kind of trade friction we saw in the past because Japanese automakers are increasing local production in the United States, but I don't think it's that simple," Hiroshi Okuda told a news conference.
"General Motors Corp. and Ford Motor Co. are symbols of U.S. industry, and if they were to crumble it could fan nationalistic sentiment. I always have a fear that, in turn, could manifest itself in policy decisions," he said, speaking as the head of the nation's biggest business lobby, the Japan Business Federation, Reuters noted.
Both GM and Ford have lost sales to Asian brands led by Toyota, which now controls 13.4 percent of the U.S. car market, the world's biggest, the story said.
In related news, the Dow Jones/AP newswire reported that Toyota may boost its vehicle prices to make it easier for the American automakers to compete.
GM is like the airlines, if they don't do anything quickly and correctly, they're going to be in deep **** soon.
Last edited by cambo; Jun 9, 2005 at 12:38 PM.
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Rep Power: 348 It's GM's fault in the first place. They started the rebates thing now they need others to help them out of it. Will GM make it? Only if they try harder...
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Rep Power: 0 One part of GM and the other domestic automakers woes seem to centre around the fact they are unionized. Outrageous demands from unions, work stoppages, strikes, etc from the past few years have taken their toll.
The vast majority of the Japanese and European manufacturers are not unionized, and it is clear that they are not having anywhere near the same financial troubles.
The vast majority of the Japanese and European manufacturers are not unionized, and it is clear that they are not having anywhere near the same financial troubles.
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Originally Posted by CivicStudEx
cause they break, my Uncle got a Jag 1 year ago, and its got some pretty major problems on it already, his trunk was rusting, and the front end is falling apart. 1 YEAR.....way to go Ford!
Originally Posted by cambo
One of the reasons why GMC is not doing so well is that they support so many americans in retire pension plans and their union contracts keep them in a bind for another 2 years. They also have to many product lines with to many vechicles to design/test/refresh. This leads to underdeveloped cars, less money spent on R&D per car, bland styling, and cars that don't get refreshed for ages (although buick and pontiac brands will be seeing some trimming in their lineup soon or their possible demise).
GMC also has to cut corners wherever it can. For example, the engineers wanted the Hummer H3 to be 6 inches wider to share a family resemblence with its H1 and H2 brothers, however, management at GMC cut those 6 inches to allow the H3 to be built on their small pickup platform (i think).
General Motors also has to many factories open around the United States. They need to close 2 or 3 of the factories down and increase production at the other factories, but they can't do this due to their union contracts. If they were to close down the factories, they'd face VERY large fines.
Another thing GM needs to do is redo their employee benefits. If i remember what i read correctly, part time GM employees have better benefits than their full-time employees.
What's been keeping GMC (and Hyundai) in business is their china operations. They pretty much had a close to 90% of the market in China, but not anymore. China is opening doors to more outside companies and making it cheaper for Chinese companies to make cars. Outside competition are bringing in smaller, more fuel efficient cars with gooky styling, compared to the larger GM vehicles with more bland styling.
The current GM CEO has to make some good decisions to bring GM out of their rut within the next 2 years otherwise the board of directors will be replacing him. They're content with him for now and his new business plan, but if it doesn't work, he's gone for sure.
GMC also has to cut corners wherever it can. For example, the engineers wanted the Hummer H3 to be 6 inches wider to share a family resemblence with its H1 and H2 brothers, however, management at GMC cut those 6 inches to allow the H3 to be built on their small pickup platform (i think).
General Motors also has to many factories open around the United States. They need to close 2 or 3 of the factories down and increase production at the other factories, but they can't do this due to their union contracts. If they were to close down the factories, they'd face VERY large fines.
Another thing GM needs to do is redo their employee benefits. If i remember what i read correctly, part time GM employees have better benefits than their full-time employees.
What's been keeping GMC (and Hyundai) in business is their china operations. They pretty much had a close to 90% of the market in China, but not anymore. China is opening doors to more outside companies and making it cheaper for Chinese companies to make cars. Outside competition are bringing in smaller, more fuel efficient cars with gooky styling, compared to the larger GM vehicles with more bland styling.
The current GM CEO has to make some good decisions to bring GM out of their rut within the next 2 years otherwise the board of directors will be replacing him. They're content with him for now and his new business plan, but if it doesn't work, he's gone for sure.
Originally Posted by white2K2EX
Nice try, slick, but your little riceboy outlook reeks of being uninformed. Jag's have always been crappy cars. They're BRITISH. British cars have always, in general, had serious reliability issues, so which would you rather have: a burnt out electrical system at 15,000 miles or a rusty trunk at 15,000 miles? I'll take the rusty trunk if I have to have one or the other. Jaguar's reliability has gone way up since Ford bought them.
true dat... if you guys read car and driver magazine, they say the same thing, that ever since ford aqcuired jaguar, land rover, volvo, and mazda the quality of the makes have shot up tremendously... the americans know what they are doing. Its just that nobody in america is willing to work without benefits and ford and other american car makers want to keep their buisness in the country instead of outsourcing the jobs hence the extra burden. Honda doesnt even make complete cars in japan anymore, i think the s2000 is an exception but all the others are made in canada or MEXICO!
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Originally Posted by Importracer
this guy knows what hes talking about! If GM didnt have these crazy old retirement plans then they would be ontop of every carmaker today! They still are the worlds largest car maker btw. GM just needs to change to their benefits plans and they should be set.
Toyota made their decision almost entirely on GM's current status. I don't think they even looked at Ford.
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Rep Power: 338 Looks like GM is about to have even more problems...
http://www.msnbc.msn.com/id/6803428/site/newsweek/
It's not as if General Motors doesn't have pressing business at home. The stock has fallen 50 percent since 2000, as sales shrink and market share dwindles. The mother company had to take over the imploding Saturn division last week, and a pension time bomb threatens the whole operation. Yet, as his Detroit house burns, CEO Richard Wagoner Jr. is jetting abroad this week on a desperate mission to avoid buying the 90 percent of Fiat that GM doesn't already own.
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