With the auto show in Detroit in full swing, the pronouncements from the domestic companies are all about how well they will do in 2007. Amazing.
DaimlerChrysler's (NYSE:DCX) Chrysler unit expects to sell more cars this year than the 2.7 million it did in 2006. The company still expects to cut $1,000 from the cost of producing each vehicle. For a company that lost 6% of its sales last year, the ambition seems grandiose.
General Motors Corp. (NYSE:GM) expects sales gains as well. Forty percent of the cars it will market in 2007 are brand new, a higher percent than in recent years. It will market new crossover vehicles, which are more fuel efficient. GM's sales in China were up 32% in 2006 to almost 878,000. If it can continue those gains, its goal to increase units in 2007 may not be quite so wild.
Ford Motor Co. (NYSE:F) seems to have refrained from thumping its chest on the sales increase front.
But, the issue remains that the large Japanese car companies have been relentlessly taking market share for years. There is nothing in the forecasts from GM and Chrysler that would seem to negate that.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
1-08-2007 @ 12:19PM
The_Village_Idiot said...
Quality problems & recalls are increasing at Toyota and Honda. Toyota (especially) may become a victim of its own success.
1-08-2007 @ 12:38PM
ron binkowski said...
comparison of products between the foreign competition and the domestic auto industry reveals the cause of the challenge facing domestic manufacturers regarding loss of market share. The foreign competition product offering appeals to the majority of potential customers. I am in the market for a new car, my previous preference was the buick la sabre. Domestic manufacturers do not produce a quality product with a roof line high enough to permit easy entrance/exit. All new domestic products require the driver to put his head in his chest to enter/exit a vehicle. I settled for a used 2005 le sabre rather than new or foreign.
1-08-2007 @ 5:25PM
JBDR said...
What a surprise, the same guy bashing GM and Ford. And as usual, it's total nonsense.
Why isn't this guy writing about how Toyota has cut sales goals for the delayed and problematic Tundra or how Toyota has recalled more cars than they have sold?
He's nothing more than a butt kisser for the imports, AOL could do much better than to link his blog.
1-09-2007 @ 2:59PM
Paula Walach said...
Detroit auto show?
Hey , Mr. Rick Wagoner, you are misleading the public with GM professional grade. I call professional grade light weight stainless steel. Also made to be " modified at any time without getting busted knucles" for alternate fuels, or even electric power. Cars /Pickups /Vans should all be made of stainless steel. Toyota then could never match that. Your ex -employee John Delorean had the right idea, but the wrong concept about stainless steel cars.I still like the Delorean. If you made a stainless steel vehicle of the dairy grade quality type stainless,that every one could afford and not have to replace every 5-10 years in rust belt states, you would then be a world leader. But no, you and your GM stuborness just like to keep the American car buyer in the PT Barnum buying mode with all kinds of glitz and gagetry. On star? I would rather read maps and listen to the radio for traffic reports. I suppose with this posting you and your new car dealer comrades would rather blog back and set forth the myths with making stainless steel cars .
Remeber Ford did make a 1936 Delux, a 1960 "T" Bird & a 1967 Linclon Continental out of stainless steel. Aleghaney Ludlam metals supplier collaborated with making those protocars. They still have the original exhaust mufflers/pipes on one that was driven over 200,000 miles.
How many vehicles does one have to buy in a lifetime?!?! The money I would spend on trade in every 5 years buying a regular steel/rusting car could of gone to buying two or even three stainless steel cars in a lifetime.
Stainless steel is an investment that appreciates , not a depreciation of a regular car that crosses the showroom threshhold and already has rust on it just from the humidity in the showroom.
Paula
1-08-2007 @ 11:40PM
Eric said...
Are you sure this is a guy? Sure doesnt act like one!
1-09-2007 @ 8:52AM
henry said...
Toyota, honda, nissan, mazda, how forgiving us Americans are. I guess in 30 yrs well be buying cars made in Iran.....
1-11-2007 @ 12:15AM
David said...
I am new to online trading, but have purchased about 24 new cars over the past 26 years, and about 12 used. I have started out a Ford fan, then GM, Honda, Nissan/Datsun, AMC, Jeep, but for the past 4 years I have been a Yukon & F series family. We went out in search of a convertible. We went with a Volvo C70 budget and no brand favoritism or loyalty. Volvo was nice but no wow there, Pontiac dont even waste your time,Toyota serious crap, Corvette well the sales people continually compared to the mustang GT's & GTCE, Shelby, After proving I could by one they let me drive it, big mistake the only wow factor was the beach boys would be a blues band if they drove this one. The Chrysler was nice but no 07 they are bring ing out the 08 early spring of 07, but it is about the same but either one has no wow. Multiple sales people compared their cars to the mustang, we decided while on our way to the tire place to buy 4 new tires for my wifes yukon and wait another year or so till something good comes out. We passed a Ford dealer after passing it we turned around a went to look at the mustang, Wow an 07Bright red Conv. GT with the 18" wheel package now lives in my stable/garage. I hope ford stock rises so future developements like this continues.