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Detroit's No Good, Very Bad May
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Matt Vela responded to Shailen's comments on this article on the BW site. Comments were on NYTimes columnist Tom Friedman's remarks, about the dangers of overdependence on Mideast oil vs. GM and Ford's efforts to simply move cars off the lot. A quick reading of reader comments about 5-6 (all comments) shows a huge perception and marketing gap for Ford and GM if this is even anywhere near a representative sample, because they were heavily negative. Friedman said in the NYT, that "GM is more dangerous to America's future" than any other company, that "its like a crack dealer" addicting Americans to SUVs in the face of higher gas prices- by offering buyers of its least fuel efficient SUV's gas capped at $1.99 per gallon. He also said GM is in cabal with Ford and DaimlerChrysler to buy votes in Congress. BY May 2006 compared to 2003, in just 3 years, once popular midsize SUV's like the Ford Explorer, Chevy Trailblazer, and Dodge Durango saw a sales plunge of 50%. And this after the gas promotions such as the Ford one for free gas upto $1000 with aprepaid Master Charge debit card, enough for 6000 miles. Add to this zero percent financing. GM offered rebates of $2500 to $3500 per SUV. In this manner the whole profit structure of SUV's is being lowered, and no new strategy is being developed to deal with changing conditions and changing consumer preferences, and a changing global situation.
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Yoshimi Inaba and the American market for Toyota.
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How Slumping Market for SUVs Is Hurting Detroit's Bottom Line
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Detroit's No Good, Very Bad May
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GM exec: Sales slide finally over
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Hyundai's leadership role in increasing fuel efficiency of automobiles
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Detroit's No Good, Very Bad May
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Hyundai Aims for Efficiency Lead
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Cars shrink under pressure from government and consumers.
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Small Engine shift signals big changes for buyers.
Detroit News 01/09/2010
Fuel efficiency of the U.S. vehicle fleet
02/28/2006
Fuel efficiency at 22.4 miles per gallon in 2009 for the entire fleet of vehicles in the US, according to the EPA. A shift to cars from pickups and to smaller cars.
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Car Fuel Economy Improved in 2009, E.P.A. Says
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Carol Browner, Director of Policy on Climate Will Leave White House
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Americans Are Cautiously Open to Gas Tax Rise, Poll Shows
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As the Price of Gasoline Takes Off, Oil and Auto Firms Trade Barbs
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Will automakers in Detroit take on energy conservation and fuel efficiency as part of federal loan deal?
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American fuel efficiency standards
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American fuel efficiency standards , energy prices and the evolution of the American automobile industry with the tendency towards larger cars in a world of cheap gasoline.
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Cars shrink under pressure from government and consumers.
Detroit News 01/09/2010
Small Engine shift signals big changes for buyers.
Detroit News 01/09/2010
Toyota's Prius top sellig car in 2009.
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The new image of GM brands in 2010-2011
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G.M. Finds a More Receptive Consumer
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Could GM's Salvation Be Stuff of Science Fiction?
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GM, Ford, Chrysler and the Big Pickup Market
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2.4 million full size pickups sold in 2005 with $67 billion in sales revenue.
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GM Chief: Industry Ill-Placed for Oil Shock
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Small Cars Help Lift April Auto Sales
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Detroit's No Good, Very Bad May
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Toyota strategy in the pre-Akio Toyoda period.
05/12/2005
How Toyota strategy was shaped in the pre-Akio Toyoda period, under Watanabe and his team.
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Toyoda Rues Excessive Profit Focus
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Eiji Toyoda, Promoter of the Toyota Way and Engineer of Its Growth, Dies at 100
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Wall Street Journal 02/13/2006
Toyota Tacoma: A Rugged Winner
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How Slumping Market for SUVs Is Hurting Detroit's Bottom Line
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For Toyota, a New Small Truck Carries Hopes for Topping GM
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Changes in public perception of Detroit auto companies and fuel efficiency in the 2006- 2008 period.
02/28/2006
Public perception changed in this period. Columnists like Friedman said in the NYT that "GM is more dangerous to America's future" and acting like a "crack dealer." This as GM was offering buyers of large low fuel efficiency vehicles gas capped at $1/99 per gallon. Ford offered free gas upto $1000 with aprepaid Master charge debit card, enough for 6000 miles. Were the automakers lagging behind changing conditions and not adapting to changing public perception, by fighting higher fuel efficiency standards in Congress. link to Hyundai where its technology executive says Hyundai can meet higher standards with new technology and not even counting hybrids in the picture.
Grouped Articles
Makers Pack New Cars With Technology, but Younger Buyers Shrug
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With Gas Prices Less of a Worry, Buyers Pass Hybrid Cars By
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Detroit's No Good, Very Bad May
BusinessWeek 06/02/2006
Hyundai Aims for Efficiency Lead
Wall Street Journal 09/03/2008
Ford Is Hoping to Give the Once-Great Explorer a Second Life
New York Times 05/27/2010
The Durango Becomes a Civilized Utility Vehicle
Wall Street Journal 01/05/2011
Ford's push for fuel efficiency with government funding- 2008-2012
02/28/2006
Ford's efforts in this area after the GM and Chrysler bankruptcies. Conditions on fuel economy set by the government for companies taking financial asistance or loans from the government and for the auto industry bailout.
Grouped Articles
Ford Remakes F-150, the Nation’s No. 1 Vehicle
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Wall Street Journal 01/17/2014
Ford Among First to Get Loans for More Efficient Cars
New York Times 06/24/2009
Ford looks to lead pack in fuel eficiency.
Detroit Free Press 01/09/2010
Cars shrink under pressure from government and consumers.
Detroit News 01/09/2010
Small Engine shift signals big changes for buyers.
Detroit News 01/09/2010
The new generation of post-2008 SUV's and light trucks from the Detroit Big Three automakers
04/12/2006
Fuel efficiency has increased and sales are up. Will the sales withstand another switch back to smaller cars if fuel prices spike in 2011?
Grouped Articles
Ford Is Hoping to Give the Once-Great Explorer a Second Life
New York Times 05/27/2010
Why Gas Feels Cheap—and Why It’s Not, Historically Speaking
Wall Street Journal 01/04/2015
U.S. Auto Sales Surge in December
Wall Street Journal 01/06/2015
The Durango Becomes a Civilized Utility Vehicle
Wall Street Journal 01/05/2011
Minivans Avoid That Name in Search of a Sporty Image
New York Times 01/03/2011
Detroit Says It's Ready for Higher Gas Prices
Wall Street Journal 01/04/2011
Was America asleep at the spigot? Did Detroit carmakers completely miss on competitive strategy?
02/28/2006
Issues raised by the graph on fuel efficiency over the post war period for the European, Japanese and the American carmakers show a huge striking gap. Not closing this gap was going to hurt Detroit carmakers. It also points to a complete lack of energy policy through higher standards, gasoline tax, and other policy actions by the government. Schwartz of NYT shows the gap and consequences.
Grouped Articles
Ford Is Hoping to Give the Once-Great Explorer a Second Life
New York Times 05/27/2010
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
Wall Street Journal 01/17/2014
American Energy Policy, Asleep at the Spigot
New York Times 07/06/2008
Global Car Industry Fearful for Detroit
New York Times 12/16/2008
To Shrink a U.S. Car, Chrysler Goes to Poland
New York Times 07/15/2009
GM. Ford, Chrysler and oil price increases in 2007-2008 and 2011-2012
06/02/2006
High oil prices in 2008 and again in 2011. The danger this poses for the Detroit automakers as they continue to depend on SUV's and larger vehicles for revenues and profits. Even with the big strides in making small cars, a Chevy Cruze or a Ford Fiesta is still not as popular as a Honda Civic or a Toyota Prius, says one analyst.
Grouped Articles
Chrysler’s Fall May Help Administration Reshape G.M.
New York Times 05/03/2009
Measuring Car Sales by the Gallon
Wall Street Journal 12/02/2014
Why Gas Feels Cheap—and Why It’s Not, Historically Speaking
Wall Street Journal 01/04/2015
GM Chief: Industry Ill-Placed for Oil Shock
Wall Street Journal 03/01/2011
Car Sales Jumped in February, but Here Come Those Gas Prices Again
New York Times 03/01/2011
Stepping on the Gas Needn't Crash Detroit
Wall Street Journal 03/23/2011
SUV / Light Truck Segment and Gasoline Price Increases
04/27/2006
Grouped Articles
Why Gas Feels Cheap—and Why It’s Not, Historically Speaking
Wall Street Journal 01/04/2015
U.S. Makers Facing Glut of S.U.V.'s as Gas Rises
New York Times 05/03/2006
Big Three Auto Sales Stall On Higher Gas Prices
Wall Street Journal 05/03/2006
BusinessWeek 04/27/2006
The Durango Becomes a Civilized Utility Vehicle
Wall Street Journal 01/05/2011
Detroit Says It's Ready for Higher Gas Prices
Wall Street Journal 01/04/2011
Friedman of NYT compared Detroit carmakers to "crack dealers."
06/02/2006
With their gasoline rebates and gasoline purchase paid credit cards to buyers of large SUV's, GM and Ford were increasing America's dangerous dependence on imported oil. Contrst that with the vigorous approach of Hyundai to fuel efficiency. And go fast forward to 2009 when Hyundai sees August 2009 sales 47% higher than August 2008 sales, Hyundai being the only large car company to increase sales by end of 2009 in the American market.
Linked Articles
Detroit's No Good, Very Bad May
BusinessWeek 06/02/2006
Hyundai Aims for Efficiency Lead
Wall Street Journal 09/03/2008
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