Competitive Connection

A look at the competition . . .
Imported vs. American built vehicles
While nearly half the vehicles sold in the U.S. last year by rival Toyota Motor Sales U.S.A. Inc. were imported, American Honda Motor Co. Inc. achieved a 70/30 North American-built/import ratio.

The 70/30 split came despite an increase in sales of imported cars and light trucks.
In 2006, Honda delivered 1.51 million vehicles in the U.S., a record 346,652, or 29.8 percent, of which were shipped in from outside North America.

Toyota delivered 2.54 million vehicles in the U.S. last year, including a record 1.18 million imports, for a 54.2 percent-45.8 percent domestic/import mix, Ward’s data shows.

Still, Honda Motor Co. Ltd. CEO Takeo Fukui is not satisfied. He wants at least 80 percent of the vehicles Honda sells in the U.S. to be built in North America, and maybe even more. Honda is readying a new $550 million, 200,000-capacity plant in Greensburg, IN, to open in fall 2008.  –Source: wardsauto.com February 1
*************************************************************
Then and Now
In 1997, shipments by motor vehicle suppliers totaled $178.5 billion and, shipments have grown steadily to over $203.5 billion in 2004.
*************************************************************
Then & Now
From 1993 to 2003, the number of prescriptions purchased increased 70% (from 2 billion to 3.4 billion), compared to a U.S. population growth of 13%. The average number of prescriptions per person increased from 7.8 to 11.8.
*************************************************************
Then and Now
At GM we’ve operated for most of our 98 years of history differently in different parts of the world, because that was the best way to compete in a world of high tariff barriers and other trade restrictions.  Today the world is much different, much more open --especially when it comes to trade.  And so today’s auto industry is for the most part marked by open, rather than closed markets; by lower, rather than higher trade barriers; and by tougher competition, and product and brand proliferation.  That’s why our focus at GM today is on fully leveraging our global scale and scope, sharing our best practices and ideas from around the world, and operating our business as a truly integrated global company. –Rick Wagoner, GM Chairman & CEO
*************************************************************
Then and Now
In 2002, 82% of the cars produced in the USA were made at union plants. By 2005, the percentage had shrunk to 73%.
*************************************************************
What others are saying . . .
Sales of General Motors, the Ford Motor Company and the Chrysler Group held just 50.6 percent of auto sales in the United States last month, their lowest ever, according to figures released Thursday and compiled by the Autodata Corporation, which tracks industry sales. Foreign companies took a record 49.5 percent of the market, including a 42.1 percent share held by Asian companies, also a record, according to Autodata.

But Detroit’s market share loss, in part, was voluntary. At GM and Ford, sales fell sharply last month because they deliberately reduced deliveries to rental-car agencies, which have proved unprofitable compared with sales to individual customers. But they also lost ground in sales to consumers.

“Detroit was finally forced to retreat and to stop making cars at no profit just to maintain its size,” said John Casesa, managing partner with Casesa Strategic Advisors, a New York investment firm. “It’s painful for the short term, but it’s absolutely essential to restore the long-term outlook for these companies.” –The New York Times – February 2, 2007
*************************************************************
What others are saying . . .
General Motors is in the midst of a turnaround, led – we’re happy to note – by a significant recommitment to the design of product. It couldn’t have come at a better time.

Members of the automotive media received a preview of that recommitment in a Los Angeles session conducted by senior members of GM’s design team. Of course we’ve seen ample evidence of an improved portfolio in recent product launches, led – in our admittedly narrow view – by the Corvette C6 exterior, Solstice/Sky sheet metal and the Saturn Aura’s interior upgrades. None of these automotive treatments achieve absolute perfection, but all rekindle memories of the Good Ol’ Days, when GM design influenced the work of other carmakers throughout the world.  – Source: Ft. Worth Star Telegram, January 26