The Big 3 getting the "Big Payback"?

[Ming]

The Big 3 getting the "Big Payback"?
BY GEORGE SPAULDING
The Post and Courier
6/10/06

When medical doctors attend social functions, it seems everyone wants to ask about ailments. When real estate agents try to relax, folks indulge in the latest property sales prices. When auto writers venture out, the invariable questions are, 'What's wrong with Detroit? Are Chrysler, Ford and GM going to make it?'

I cannot vouch for the doctors or real estate agents, but my response to the car question are upbeat, restrained, moderate and with rationale.

Remarkably, many of the auto industry concerns are uttered from good friends who drive an Import brand car.

You may be interested in the manner in which I handle the questions about the famous Big Three. Here is my thinking:

CHRYSLER:

This division of DaimlerChrysler is doing very well lately. It is contributing profits to the enterprise, due largely to innovative offerings, including the PT Cruiser, minivans and the Ram pickup. The Chrysler 300 continues to sell well, and the new Dodge Charger also is well-received in the marketplace. The brand-new Dodge Caliber has been highlighted in this column and continues to make an impression.

GENERAL MOTORS CORP.:

Much has been written about the company's loss of market share, from 50 percent in 1962 to 24 percent today. Have sales therefore plummeted 50 percent? Hardly. In 1962, GM sold 4.2 million vehicles; in 2005, the total was 4.51 million.

Each GM car division appears to have sales winners: the Chevrolet HHR and Impala; Buick's Lucerne; the Pontiac Solstice; Saturn's revised lineup; plus Chevy and GMC trucks keeping pace.

Industry studies confirm the Big Three have taken a giant step upward in product quality in the past few years.

I can vouch for this through personal experience.

When I first began writing this column 19 years ago, I received countless requests from disgruntled car owners asking for help in solving car problems. Not anymore. I can't remember the last time readers complained.

Now, this is not to say carmakers are immune to glitches. Any product made by human hands will have an occasional defect, some resulting in a product recall. Unfortunately, all auto manufacturers have product recalls. That's their commitment to make the vehicle right.

Even the vaunted Toyota nameplate sometimes takes a hit. An article published in this newspaper a week ago said, "A major challenge for Toyota President for North America Jim Press will be maintaining Toyota's reputation for quality as the company seeks rapid growth against competitors such as GM, which has installed new management and is working to improve its sagging fortunes. Toyota's rise has not been without bumps. Its recalls doubled in 2005."

We are not all perfect.

Full Article Here: http://www.charleston.net/stories/?n...ion=automotive

[lightbrotha2004]

I like this article he tells it pretty much like it is and bashes no one. Hey cause like he said no one is perfect so problems will arise from EVERY car maker.

[cadillacpimpin]

So what is this "Big Payback" that the title talks about?

[toronado10]

Originally Posted by The Post and Courier

George Spaulding is a retired General Motors executive and executive-in-residence emeritus at the School of Business and Economics at the College of Charleston.

Hate to be the bearer of bad news, but he may not be completely without bias either.

Overall, good review and a good point: No carmaker is perfect, despite what the media may feel about Toyota.

[Mikkoo]

Like how he takes a jab at Toyota, by saying even the vaunted Toyota isn't immune to recalls, as they have doubled in 2005. How have they done with recalls in 2006?

[Geotpf]

Interesting to know that GM sells more cars now than in 1962 even though they have half the market share than then (which means the number of vehicles sold each year has more than doubled since then).

[LAMRONH]

Originally Posted by Geotpf

Interesting to know that GM sells more cars now than in 1962 even though they have half the market share than then (which means the number of vehicles sold each year has more than doubled since then).

US population
1962: 180 million
2006: 300 million

[civilzues]

Originally Posted by Mikkoo

Like how he takes a jab at Toyota, by saying even the vaunted Toyota isn't immune to recalls, as they have doubled in 2005. How have they done with recalls in 2006?

the year isn't over..



so lets keep counting!!

[Geotpf]

Originally Posted by LAMRONH

US population
1962: 180 million
2006: 300 million

And we buy more vehicles per capita now than then.

But, GM really is not out of the woods yet. Their sales have dropped every year since 2000-until 2005, by one or two percent a year. In 2005, despite the profit-killing employee pricing fire sales, they were down 4.0%, and they are down 7.8% so far this year and 15.7% in May alone-and this is before the employee pricing fire sale kicked in, so the next few months will be even worse. GM's sales will probably be down 10-15% or more for the full year, unless they repeat the employee pricing fire sale or something similiar. Thier sales will drop even further if Delphi strikes.

That is, GM's sales are dropping at a faster pace all the time. Now, maybe they are making more money (or losing less at least) per sale-you can't tell that from the pure number of units sold. But it appears to me that GM hasn't hit bottom yet, at least in the number of units sold domestically.

[Butz]

The Big 2.5 are getting there act together, and hopefully the public will notice. Unfortunately a lot of ppl have been brainwashed and believe that buying a Toyota or a Honda isn't any less patriotic and socially responsible than buying from the Big 2.5!

[kenman923]

Looks like the new products are selling very well. If the domestic brands keep bringing fresh brands, they can end up being profitable.

[303montecarlo]

Originally Posted by Geotpf

Interesting to know that GM sells more cars now than in 1962 even though they have half the market share than then (which means the number of vehicles sold each year has more than doubled since then).

The big thing to remember that the Buicks and Impalas were not up to sales yet from the new generation. When you sell 4.51 million cars a year on a down year what is market share? The facts must be crap, that GM is going under (you think?) This looks good for GM now the work force is half of what it was in 62 with less employed because of the Manufacturing Division gone? Then who knows if Delphi will stay another day? This is not the Big Picture, GM /Ditec .com and its Russian /China deals (Share of what market should GM have ,or has?) go GM

[cadillacpimpin]

Originally Posted by civilzues

the year isn't over..



so lets keep counting!!

999,999
1,000,000
1,000,001
1,000,002
1,000,003
1,000,004
1,000,005
1,000,006
1,000,007
1,000,008
1,000,009
1,000,010
1,000,0.........

[Ty_99]

it is a great perspective to how the automotive landscape is for the Domestic brands. Biggest thing is they need to continue improving upon each car, each year, bring the quality back up, then they will start to get more people coming back.

[rsbaker]

Originally Posted by lightbrotha2004

I like this article he tells it pretty much like it is and bashes no one. Hey cause like he said no one is perfect so problems will arise from EVERY car maker.

I agree!