Why Facebook's Falling Share Price Really Doesn't Matter
Mark Zuckerberg and Priscilla Chan: A Romantic Facebook TimelineThe "Big Three" American manufacturers are DaimlerChrysler (NYSE: DCX), Ford Motor Co. (NYSE: F), and General Motors (NYSE: GM). While today's numbers really shouldn't surprise too many people, it should serve as a nice wake-up call to all the above companies which have been struggling to keep up with their foreign rivals.
General Motors posted strong earnings yesterday, but as we pointed out, the one big area of weakness remains its sales in North America, where it once again posted another loss last quarter.
The only bright side is that American manufacturers were not the only companies that suffered from poor sales last month. Even the red hot Toyota Motor Corp. (NYSE: TM) saw a year-over-year decline of 7.4%.
But the question remains... what can Ford and GM do to regain American market share? Most analysts and industry experts agree that both companies rely far too heavily on truck sales and need to start to diversify more out of this area. This segment of the auto market has been particularly hard-hit recently due to the weak housing market that has led to slower housing starts. As housing starts fall, so will the demand for heavy trucks and consequently F and GM auto sales.
Ford and GM currently have about 30 percent of their product line represented by trucks. Compare that to Toyota's low 5% and it doesn't take a genius to understand one major reason why Detroit is falling behind.
What do you think about these recent figures? I am curious to hear from our readers why they think Ford and GM are unable to take back lost market share. If you were in the market for a new vehicle today would you even consider visiting your local Ford of GM dealer? Or would you head straight to the Toyota or Honda lot, and why?
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 2 of 2)
8-03-2007 @ 10:12PM
T-Bomb said...
Problem #1: I will not pay extra for a Union-mans benefits to build a vehicle for me or anyone else. and at Ford and Gm thats how its goes instead of 43.00 hour its 73.00 an hour, you the consumers are paying the benefits on your recalled vehicles.
Problem #2: Ford and Gm think big, big auto's and big engines and honestly with todays gas price's I am looking for money saving feuled vehicles.
And for those's Union folks who think the consumer should pay for there benefits they should start by paying for there own and maybe this will save their job, especially since most of there jobs are on the chopping block now. every other American has to pay a portion of his own benefits what makes them so special.
8-07-2007 @ 12:55PM
Ira Lande said...
Last week I purchased a 2008 Toyota Corolla for my daughter after reading the Consumer Reports New Car Report for 2008. Since 2000, I have purchased 2 Honda Accords, 2 Nissen Sentras and 2 Corollas. I used to feel guilty not buying an American car, but not anymore.
8-27-2007 @ 1:22AM
bruce said...
40 years ago we thought chevys were great.
now we all love the way our B.M.W.s and mercedes drive fast and smooth.
Since G.M. killed the electric cars, I will NEVER buy american cars again.
8-27-2007 @ 8:57PM
JOE Smith said...
What is wrong with America ?
In the event of a major war who will defend our
Freedom ? Japan ? China ? South Korea ?
Support America, Buy AMERICAN ! ! ! !