In the race to claim the title as the "world's largest automaker," does the world really care? How about the stock market -- do traders speculate based on a claim that's meaningless? Do purchasing consumers give a thought to this claim either? With General Motors Corp. (NYSE: GM) and Toyota Motor (NYSE: TM) trading this inane title in 2007, gossip and ego-bragging has apparently taken the place of, you know, actual profitability and growth prospects. At least in the media.As many market pundits (and value investors) have been screaming forever, it's the profit a company makes that should be at the top of investor and consumer minds, instead of something as meaningless as "the world's largest" anything. Which is more important? Market share or making money? Sometimes the hand of luck graces a company with both (for a while, at least). But for others, blind chasing of market share eventually leads to their demise. Which is more important for the companies you stock in your portfolio?
If it's market share, then you're probably not scared by questionable corporate motives or jack-o-lanterns. GM and Toyota need to forget about this eventual baton-passing related to the "world's largest automaker" statement and focus on making vehicles customers want, growing profit in an orderly fashion. Capturing market share should rank a distant third priority. It's not nearly as exciting as all the meaningless hubbub that surfaces in the media about the "world's largest" whatever, but it's a guiding principle of any business, anywhere. Or at least, it should be.
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Reader Comments (Page 1 of 1)
10-31-2007 @ 4:36PM
V.S. said...
GM doesn't care who is #1.....as a retired skilled tradesman....GM only cares about market share first.....anything after market share will happen....To get market share..the quality will have to be there and it is happening as we speak. The new 4 year agreement that includes a wage freeze will give the core suppliers the ability to lock in longer contracts with their suppliers which is a win-win with everyone. GM stock will be $55 by the end of the year.
11-01-2007 @ 12:21AM
Brockage said...
The setup here is a false dichotomy. Be both - the largest and the most profitable. Being number one has meaning to the morale of associates, attracts customers, and is part of the larger world of competition. Ask a Texan or an Alaskan if size is irrelevant; ask Wal-Mart if it wants to downsize to the level of the Dollar Stores; ask your mother if she'd have preferred one less in your family, but don't ask whom she would have picked to "lose". We're Americans, a big people who like things big. Too bad we really do often have to downsize our cars or our houses. Let's not downsize our dreams, our competitive instincts. Go GM.
11-01-2007 @ 3:09AM
bkhayes said...
Very well stated Brokage.
I am proud and grateful to be a citizen of the United States Of America. I will do what I can to help her.
11-01-2007 @ 7:10AM
CasaVera1 said...
Why wasn't your article titiled "Earth To Toyota?" They're wanting the title, too.
11-01-2007 @ 1:30PM
genesis68ba said...
Typical Brian White (Anti-GM comment). As always, little research is conducted. Brian, please find one quote, one comment - heck ANYTHING from GM stating they are in a race to claim #1. All comments, quotes, projections are coming from Toyota! As the previous person stated, this should have been called 'earth to toyota"
11-02-2007 @ 7:42AM
jpdr1100 said...
OK, Genisis, find us one direct quote from Toyota stating that being #1 is their goal. I can find you dozens saying it's not.
11-02-2007 @ 7:52AM
jpdr1100 said...
"GM Chairman and CEO Rick Wagoner has said that hanging onto the No. 1 sales ranking isn't a priority, but that it's also a distinction GM won't give up without a fight. Monday GM spokesman John McDonald repeated those beliefs."
http://money.cnn.com/2007/04/24/news/companies/gm_toyota/index.htm
Someone read to eat their words now?
11-02-2007 @ 10:52AM
A D said...
I see Tony the Toyota apolgist has made his way here too.
Of course he wants to rag on GM. But he runs like a roach when the truth comes out about the liars from Japan. That they ARE BEYOND ANY DOUBT MANIPULATING CURRENCY. That Toyota has huge problems with quality like the millions of sludge prone engine they refuse to cover and lately tailgates falling off the failed Tundra.
Of course they both want to be number one. But it seems Toyota and it's followers don't care how many lies it takes.
11-02-2007 @ 2:39PM
jpdr1100 said...
Ah yes, the return of name calling.
A sure sign you have nothing of value to add, and are again unable to support any of your claims with real facts.
The claim is that GM never said they want to be #1 (see #5 above). Care to defend that, or would you rather just let us all see the real depth of your knowledge?
11-02-2007 @ 10:47PM
baseball,hot,dogs,apple pie, chevrolet said...
I would like every American to remember Dec.7 1941. The first 9-11 ALL profits from foreign cars go to help finance Pearl Harbor II.
11-04-2007 @ 1:33PM
Fran Preve said...
FINALLY!, someone gets it right. Rick Wagnor and GM have a business plan, gain as much market share as possible WHILE gaining profits in it's North American operations. Our cars are getting better year by year. Our trucks and SUV's are getting better, year by year. The UAW is working WITH GM, not fighting them (for the good of ALL!). And slowly but surely the PERCEPTION of GM vs Toyota is changing. Way to go General.