Quote:
Originally Posted by Muck
So the Big 3's problem was that they sold more vehicles than the competition and those vehicles were of a type that had a higher profit margin?
The solution was to sell fewer vehicle with a lower profit margin while the competition was investing billions in producing larger trucks & SUVs?
Got it.
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The solution was to get into a position where they would be able to sell those smaller, more nimble and efficient cars at a good profit. That way they aren't over-exposed on the gas guzzling land tank SUVs.
It was that step which neither Union
nor Management took. It was that part of the marketplace they ceded to the Japanese, then the Germans (VW) then the Koreans. That part worked out to 30% of unit sales. Special managerial skills and absolutely top-notch self-serving practices are simultaneously needed to achieve such a denoument.
Unless they come roaring back off this nadir they will soon cede it to TATA, or some Chinese manufacturer - then it'll truly be ta ta for now.