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Toyota gains upper hand with Prius

Posted Jun 19 2009, 06:01 AM by Douglas McIntyre
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Toyota (TM) has booked 180,000 domestic orders for its latest Prius hybrid in the first month it has been on the market. There is no reason to think the car will not do extremely well in America. It is considered to be the best hybrid made by any car company and has sold well in the U.S. since it was first introduced.

With the third-generation Prius on its way to America, many of the auto plants of The Big Three are idle and the domestic manufacturers are hardly in a position to produce tens of thousand of hybrids during the rest of 2009. Even if they could, their products don’t have the reputation of the Prius.

The trouble that General Motors (GMGMQ) and Chryler will have fielding competitive products says a great deal about the problems with the government bailout. Even though the bankruptcies are moving quickly, the process of cutting billions of dollars of costs, closing plants, and shuttering dealerships will hurt the domestic industry as the economy begins what appears will be a slow recovery. GM and Chrysler might have been better prepared for the 2010 model year if the government had used its axe a little more slowly and kept a few more people on the job and idled fewer plants.

The push to make Detroit profitable overnight won’t work and it may well backfire. There is nothing wrong with losing money for a year or two if it is done based on strategic decisions to gain market share. The way GM and Chrysler are now structured, they will offer fewer brands and won’t have the kind of product development budgets which will allow them to put out large numbers of truly competitive, next-generation cars.

Detroit has cut to the bone just as some of Japan’s best products, with the Prius out in front, are about to attack the American market.

Top Stocks blogger Douglas A. McIntyre is an editor at 24/7 Wall St.

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Comments

 

The 'Big 3' spent decades turning a deaf ear to what the 'people want and need' in a car.  Instead they spent their time trying to 'tell the people' what they need in a car.  Of all of the car manufacturers, only 'Toyota' and possibly 'Honda' have really listened.  Even with all that has happened recently to 'GM' and 'Chrysler' they still haven't listened.  They are now in a position to 'transform themselves and the country' away from an 'Oil Economy'.  This I believe is there only chance for salvation.  It will depend on the full backing of the 'US Goverment' and the 'American People'.  This direction and action is needed 'now', not five or ten years from now.  By then it 'will' be too late!

Not only Toyota. Europe, and especially VW is making incredible advances is clean diesel. The Jetta TDI diesel beats the Piuos in highway milage.

GM needs to clean the chevy cobalt up and make it look more professional.  It seems obvious by looking at the jetta, corolla, altima, and many other small cars that you see on the road that people want a good looking small car.  The majority you see driving american made small cars are teenagers or college student aged people.  Insuring the cobalt and other cracker box cars are expensive too.  If you are paying too much for your insurance, or think you are I found a great place to get multiple quote here:  http://www.shop4insurance.org

Has everyone forgotten the new Ford Fusion Hybrid?  It gets 41 MPG in the city, 40 highway and is available now.  It's bigger than the Prius.  Everyone is so quick to disparage Detroit.  You need to think twice.

It's apparent that GM, Chrysler, Ford and their other car companies which they have absorbedare in serious trouble.  GM and Chrysler are on the verge of or are in bankrupsey.  The problem is that the leadership of the past has bowed to the wishes of a few investors who have rape and pillaged the companies for personal gains.  Now the government is talking of take over of the companies.  The government has a long and proven track record of corruption for personal gain which is clearly demonstrated by daily scandles on the news.  What is the solution?  It would be to make all the people liable for their actions (Oh my God, what a concept).  Stop letting them get away with rediculasly stupid low fines and make them swing a sledge hammer instead for a lot of years. Stop giving American jobs away to foreign contries and return them to american workers. You do this by making it unprofitable for the companies to ship them abroad. If they don't stop printing more money to fix their problems the United States will find themselves in the same perdicument as pre-world war II gremeny with their financial system.  The problem again is not bailout or subsidation but making people accountable for their actions.  Today everyone has their rights but no responsibilities.  Clean up the judicial systems and the laws of the country to reflect this philosiphy.  (Pardon my spelling errors) I'm getting older and more forgetful not to worry I won't be held accountable, I'm in the USA.

Don't look now but there is an actual shortage of large big-3  SUV's and pick-up trucks.  American's need more space than the small death traps have to offer and will not be told by enviro's or politicians what they have to drive.  Drill baby Drill

The F-150 was the best selling vehicle in the world for over 25 years. Detroit was building vehicles that were selling. When oil prices went through the roof everybody abandonded detroit. That's what got them in trouble.

Have any of you Detroit bashers ever driven an American car? They are world class. I have owned many Fords and GM vehicles and they have all been very good cars with very few problems. I currrently own three Chevrolets right now and have never had a problem with any of them. One of them is a '93 Beretta with over 130,000 miles that my daughter drives everday. That car runs and drives great. Wake up people, don't always believe the bad press you hear about Detroit.

Bail out money should of went to companys that make money. they could grow.

When you operate a business, safely, make what will sell, focus on employees, not your own pocket. Practice 80/20.

How does the big 3 affect ISO?

The Prius and pretty much all other Toyotas are darn good cars.  But Ford is coming on very strong with it's next wave of new designs.  The 2010 Taurus, Fusion and Focus are world-class.  Car & Driver magazine recently raved about the hybrid version of the Fusion.  The F-150 continues to be a best-selling truck and the latest design iteration is a class leader.  I would love to buy a 2010 Taurus, but poverty keeps getting in the way of that  :-)  Keep your eye on Ford.  Of the Big Three, it is the only one that is not under the protective wing of the government.  Some view that as a disadvantage, but I view it as a way to stay focussed on the desires of the customer, instead of the desires of the new federal overlords.  Aand by the way, I like Obama but I don't think the feds can run car companies without mucking it up owing to the inheirent conflicts of interest.  In the long run, Ford will emerge as the healthiest of the trio of American auto companies.

GM and Chrysler... SMOKED.  Who says a 100 year old company cannot go down the tubes.

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