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Old November 21st 08, 02:59 PM posted to rec.autos.makers.chrysler
MoPar Man
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Posts: 660
Default Bailout for the Big Three?? How will it help??

"Paul M. Eldridge" wrote:

> Forgive me if this sounds flippant, but have the big-3 done much
> in the way of long-term product planning and expensive R&D relative
> to their peers?


The Big-3 (B3) all produce a mix of cars that satisfy a variety of
consumer needs, including fuel efficient small compacts.

If the buying public in the US/Canada prefers to buy a foreign vehicle
of any particular class or catagory or if they would only buy a B3
vehicle only if priced substantially lower than a competing foreign
model, then the reasons for this should be discussed here.

Continuously stating that the B3 are losing sales to foreign (or more
specifically, asian) cars because they are not making the correct mix
vehicle types is flat-out wrong.

> If what we have today is the result of long-term product planning,


What we have today is the result of 2 decades of consumer perception
that B3 cars are inferior to asian cars, combined with a tax and tariff
structure that favors asian car sales in the US.

> > The big-3 have roughly 50% market share in the US. Saying that
> > they "can't sell North-American cars to North American buyers"
> > is hyperbole.

>
> Year after year, the big-3 continue to lose market share to their
> foreign competition and I don't see this trend reversing anytime
> soon.


They've lost market share because there are more foreign players with
more models in the market today vs 4 years ago.

And they will continue to lose market share as the US dollar appreciates
vs other currencies in this current climate of economic fear (or
terror). As global stock markets tank and commodity prices fall, the US
dollar is (or will) be seen as the only asset to hold that will not
decline in value vs anything else, hence this will put extreme pressure
on all US manufacturing (not just the B3).

> BTW, isn't calling GM, Ford and Chrysler the "big-3" somewhat
> hyperbolic in itself now that Toyota's sales surpass those of
> both Ford and Chrysler?


GM, Ford and Chrysler have collectively been called "the big-3" by the
north american media for years, and probably got that name when there
were other US car makers still operating (like AMC).

I use the term "Big 3" because it's faster to type than the names of the
3 US car makers, which we are lumping together here for the purpose of
this thread.

> Perhaps we measure success differently. Toyota sells 3.4 times
> more passenger cars than Chrysler; Honda outsells Chrysler
> 2.2:1 and Nissan 1.5:1.


We know there are size differences between the various car companies.
We know that Chrysler has always been the smallest of the B3, and is
smaller than Toyota and probably Honda as well (in the global sense).

The real issue is the change of North American market share and relative
profitability between the various players. Over the past 4 years, the
B3 have gone from almost 60% market share to just under 50%. I don't
know who of the B3 lost more of their share.

> I want a plug-in hybrid because that's the type of vehicle
> I want to drive.


Even the Prius is not a "plug-in" hybrid.

I don't know who makes a "plug-in" hybrid.

And I'll tell you that the consumer market is just beginning to build an
experience base for electric power storage in cars, and it will take
another 10 years before we know just how ergonomic and economical those
batteries will be.

Plug-in vehicles (either totally electric or hybrid) will create their
own social problems, and soon, as people drive around with extension
cords and try to charge-up using any exterior outlet they can find on
any building, shed, or utility pole (essentially stealing power).
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