Meh, Toyota wrote the book on quality control during the manufacturing process. The factories and its employees stick to a strong belief in “Kaizen”. And fixing each individual problem as it occurs on the assembly line rather than after the manufacturing process. They will actually stop the entire assembly process, to address one single problem (as big as a motor mount, or as small as a door creak.)
I understand, Toyota sales directly effect my pocket book. Therefore I’m glad GM sucks. 
True story. However, this is partially because the build processes or so tightly coordinated that when one does stop, the others have no choice but to stop and wait. The line at Cambridge moves so that a Corrolla/Matrix can roll off every minute, unless something goes wrong. and MOST of the time, they make it. It’s impressive.
FWIW toyota is taking a bath too with the new Tundra. They invested a boat load of money into that new factory. Honda has been taking shit for years from American journalists and public about no pickup and no V8s. They had foresight to invest elsewhere when other manufacturers did not. The japanese niche was always cars. At least GM and Ford can dip into their Euro model range for small cars. Chrysler doesnt have that luxury altho there was suppoused to be a deal with Nissan about Nissan making small cars for Chrys and Chrysler making trucks for Nissan.
^ good point. Never really thought about it but Chrysler isn’t as global as Ford and especially not as much as GM. They really don’t have too many options at all for small cars. And look where that got them lol.
But Toyota was smart enough to diversify their lineup. They came out with a new Tundra but covered their bets by also updating their new car lines and working big time on hybrids. Yeah, the new Tundra may be a money loser in the short term while gas prices peak but they’ll be able to ride that out using the profits from their gas misers. People will buy the Tundra because some people simply need a big truck. It probably won’t ever meet the volume projections they made back when the decision was made to spend all the money to redesign it though.
It’s like any investment. Long term the diversified portfolio almost always wins. The big three loaded up on SUVs/trucks and reaped the profits while gas was cheap, but lost out when gas went up.
Chrysler used to have tons of options for small cars… that was a large majority of what they made for the 80s and 90s… what i want to know is who though it was a good idea to axe the neon from a sales standpoint.
Brian
Actually people are still buying Tundra’s/Sequoia’s. 0% for 60 months helps a lot.
Ah yes, the GM way of thinking. Lose money long term to make it look like you’re making money this quarter.
:tup: :picard:
35k @ 6.9% for 60 months = $6250 in interest. Drop that to 0% and you’re pissing away $6250 in profit. But it looks good on the books this month because you sold a 35k truck and get to spread that loss out over 60 months. Bottom line though, it’s still a loss. This is the kind of thinking that got GM stock down so low.
When a manufacturer offers huge rebates and 0% for extended term that vehicle isnt selling well. Not only does the captive finance co lose potential income like J said, the F&I department at the dealer isnt making any money either. Having to give away cars on the front end plus no markup on the financing = no profit for the dealer.
Ironic, they stopped something that did so well for them. Went back to business, and ended up right back where they started in the 80s.
Speaking of Chrysler, they announced 1000 more job cuts. I think they might have 2 or three guys left after this :shrug:
http://www.bloomberg.com/apps/news?pid=20601087&sid=azweFsM0awQs&refer=home
^ It seems like the big three and the airlines are in competition to see who can lay off more people.
I think chrysler is screwed but GM and Ford will come out of this pretty strong. I just hate that Toyota is beating GM and my Uncle is making sure those of us who are GM guys don’t ever forget it.
At least I’m getting the shit storm out of the way so the rest of my business owning life I can tell stories about it when I’m my father’s age.
I read somewhere the GM is bringing over 1 of its Euro cars, but ford said it had no plans to bring over the Ka or any Euro car it produces.
Not looking well for Ford & Chrysler.
lol mike would rub it in every chance he got too…thats the mike i know haha
he was the smart one and had some sense in him to get the toyota franchise rather than a GM one…he should have pushed more to get the honda one in lockport too, but oh well, his loss i guess
I agree that Chrysler is FUBAR. IMO Ford and GM will weather the storm. They will come out looking nowhere near their previous selves, but I feel that they will at least survive.
we would looooooove to have a Honda franchise, trust me
The hold back on a tundra is ~$800, so dealerships are still making that…plus TDA etc etc. F&I still has a chance to sell thousands of dollars in warranties, protection plans etc. etc. Having 1.4 million dollars worth of Tundra’s/Sequoia’s doesn’t help your floorplan interest…paying $30-$40 a day on every Tundra…gets costly. Dump it now, or pay for it when 2009’s get here and no one wants an 08. Imagine paying $74,000 a month in interest to have your tundra’s sit around. Get rid of them, even if the dealership loses $1,000 every tundra they sell and we sell all 50 of them… it cost us $50,000 rather than $74,000 in interest.
Believe me. Dealerships make money on every sale, every time. Especially because the customer will return for service, warranty work, referrals, etc.
Didn’t someone just build one in lkpt?MAybe west-herr?What about Basil’s new “Honda of Holland”