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Wednesday, May 03, 2006

Ford, GM, are losing market to Honda, Toyota

Written by: S.M.Mehdi Hassan

As I was going through the automotive news my eyes stuck on one article saying that American buyers are now becoming more interested in buying cars made by Asian companies especially, Japanese companies. Isn’t it surprising? American Automakers companies produce top quality cars then why the Asian cars? Because of the rising oil price buyers are now looking for fuel efficient cars. The main problem of American automobile makers is that they produce big cars for higher profits. Famous American automobile company The General Motors saw a decline in their sales in April. In April The General Motors observed a 7% decline in their sales. However, their Sports Utility Vehicles (SUV) did good business. Another famous automobile producer, Ford, saw a 42% drop in their sale. On the other hand, Japanese cars for the first time in the last ten years and grabbed the top position in the U.S. auto market. Japanese car producing company Honda acquired the top position with its four new cars. It introduced two new cars Honda civic and Honda ridgeline. Toyota with its two gasoline-hybrid electric cars Toyota Pirus and Toyota Highlander Hybrid topped the list. American automobile companies lost a good part of their markets after foreign producers came to the market. It is really surprising that Americans believe that Japanese cars are superior quality to that of the Americans.

Related links:
http://abcnews.go.com/Business/Autos/story?id=1675993&page=1
http://www.nysun.com/article/32098
http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20060502-000768-1609
http://english.pravda.ru/russia/economics/08-05-2004/5509-cars-0

(To read about South Asian Business visit: http://www.southasiabiz.com/)

2 comments:

Anonymous said...

Yup, you are correct. This has been in the news and I for one am excited about it. American corporations too many times rip us off, suppress advancement in technology, and cry "help" by blocking other manufactures (the movie Tucker ring a bell?). They are now experiencing the benifits of the "free market" and theory of Ayn Rand about how the market will adjust. They purposely over the last century have refused to provide what consumers really want. We want safe, reliable, high mileage, good MPG, and good looking auto's. Toyota has answered and I for one have not owned and American car for 5 years and will never buy American again until they decide to conform.
My big problem is that they always cry out for people to buy their inferior products using a nationalistic approach (is that a word?). Marketing campaigns that scream "Buy American" which is hilarious because who wants to buy something because of nationalism when the company does not look out for the people of this nation's interests? Moving things to Mexico, making inferior automobiles, producing more and more huge vehicles that suck fuel down while prices have done nothing but quadruple over the Bush administration. Seems like the government, the petro. companies, and the automobile manufacturers are all in each other pockets because now that they are suffering, the government is there if they need bailing out. Ridiculous...

That's my .02 cents.

S.M.Mehdi Hassan said...

Thank you for your comment. You see I live in Bangladesh. It is a third world country. Here when we hear names like Ford or General motors we think they are very big company and produce very high quality, expensive cars which Americans can afford. That is why, I was really surprised to found out that Ford and GM are loosing to market to Japanese manufacturers.