Recently we see the small foreign Auto Makers doing very well against the SUV building American Auto Makers and some 140,000 auto manufacturing jobs later, it is starting to take its toll on middle class America. But there is more to this if you talk to auto industry folks on the street. In 2000 when the oil prices went up here is what we learned on the street; "Well this is interesting data. Talking to a Kia dealership the other day, a small one moving 100+ cars per month. Kicking the crap out of the other local small dealers and selling cars for $199.00 per month on a lease and Volkswagen doing the same thing with the little Bug. Is this a repeat of the of the Dinosaur car sales of the 70s?" Well this revelations shows that US Automakers had plenty of time to work things out and start changing their market mix towards smaller better gas mileage vehicles, but they did not. The Deming Years repeat? You see in 2000 America got caught with her pants down when the Japanese opened the floodgates with smaller cars by Honda, Toyota, Datsun (now Nissan, actually always Nissan which built WWII warplanes) and Mitsubishi who built the Japanese Zero, which bombed Pearl Harbor along with the Kate torpedo bombers. Speaking of which in 2000 Pearl harbor day came and went and barely a mention of our History, we were focused on CHADs? Interesting how we Americans deal with History and now the same thing. SUVs being sold and everyone surpassing the Jones family next door. These all terrain SUVs never see dirt, but hey they look cool. In 2000 KIA from Korea was taking the lead in many markets right after the Daewoo scandals. In 2000, we again got caught off guard by our own inability to turn and adapt to changing markets, but how could this be in an era where Sun Micro, Microsoft, Intel, Oracle, HP and Dell sink or swim by their ability to change directions on a dime. If they cannot they are out of business in that particular market and the Auto Industry, why is it that they cannot do it? Relying on the dealers to jam four wheel SUVs down consumers throats or else lose their five star franchise dealerships with the big three? Now let's look in second quarter of 2006 and the top executes at both Ford and GM are playing musical chairs, admitting mistakes and losing over 11% more market share to Toyota. Meanwhile Toyota is sold out of hybrids and has waiting lists. Do you honestly think that high oil prices do not affect the American Economy? Think again. |
