After years of unquestioned industry dominance, GM was not prepared to shift its approach to making cars to cope with the competitive edge possessed by Japanese automotive manufactures such as Toyota since the 1980s. "To be sure, GM has seen sales jump from time to time, but always because of costly incentives, like zero-interest financing after the Sept. 11 attacks, or the 'employee pricing' last summer. Ford and Chrysler have been forced to follow GM's lead on incentives, though the Asian automakers have largely avoided them by offering more attractive vehicles." (Isidore, "Many problems dog the No. 1 automaker," 2005) More attractive vehicles do not necessarily mean more luxurious vehicles -- far from it. Rather by offering inexpensive, reliable and mid-sized cars tailored to the average consumer desiring fuel efficiency, Toyota has gained an industry edge. It anticipated the desires of the public, and also deploys a largely non-union workforce, unlike GM.
In contrast to Toyota's strategy GM has been unable to ensire that its long run average costs are minimized. It has lost funds by paying retired unionized employees costly...
Ford Motor Company is one of the largest automotive companies in the world. They had total sales of over 5.6 billion cars worldwide in 2011 and have over 16% of total market share in the United States alone ("Market share and sales," 2012). Maintaining a presence of this magnitude requires a substantial network of supply for both parts and labor. It is also essential that they be able to sell
Many on Wall Street expected Schrempp to use his new-found liquidity to make an acquisition. It is worth noting that Schrempp always saw auto manufacturing as a global business. In addition to establishing an important beachhead in the U.S., he wanted to do the same in Japan. Shortly before the Chrysler merger he concluded a deal with Mitsubishi to acquire a significant minority stake in their stock. Schrempp must have
Collapse of the Big Three America was once the leader and pioneer in the auto industry, a title that the country had for decades and a title that was so dear to America's heart that it was unfathomable to think that title might ever be lost. It's commonly misconstrued that America invented the automobile, when in reality that honor goes to German Karl Benz in 1885 (Rozema, 2010). "Americans did, however,
ILE L100 I was pretty enthusiastic when I returned to the 56th ABCT having been ordered to assume responsibility as the deputy brigade commander (DCO). I felt proud and lucky. I had held the proud and shinny image of the 56th ABCT in my head for the last two years. When I returned, there had been some significant changes. It has not been long since I returned, and with the division
Technology Energy Efficiency The idea of electric cars, which run on big rechargeable batteries in opposition gas-powered internal combustion engines, has been around for years. But growing climate-alteration worries, tougher fuel-efficiency standards, billions in government subsidies, and a lot of venture capital seem to be generating a tilting point that could move electric cars from the transportation borders into the majority (The future of the electric car, 2010). An electric car by definition
At some institutions, loans of this type were actually called "liar loans" by brokers, a reference to the obvious fudging of information they represented (Markels 2007). A substantial portion (if not a large majority) of new home purchases during that time period involved a fraudulent practice of dishonestly inflating the income and financial health of prospective purchasers. In many instances, the real estate brokers and mortgage brokers precipitated this type of
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