Monday, August 21, 2006

Commentary On U.S. Auto Makers Decisions To Cut Production

Recently, we have seen announcements that various Detroit-based auto manufacturers are planning to cut production. Where did these guys go to business school?!!! Correct me if I am wrong, but the solution to their financial problems is NOT to CUT production, but rather to SHIFT production from big, gas guzzling cars to smaller, more efficient cars. Don't Ford and GM notice that people are still buying cars? Just look at the increasing sales of Honda and Toyota.

Myself, for example...I am a component of their target market...my lease is expiring in a couple of months. I am one of the zillions of people on lease who MUST get a replacement vehicle. This is non-negotiable. However, I am not considering a truck or SUV as I may have in the past...I am focusing on an efficient option or one of those cool hybrids. These models are "slim pickens" at Ford and GM, so I can be spotted on the lots of their "competitors". I am buying a car, but I am certainly making different choices.

So if GM and Ford are going to cut back on production of trucks and SUV's, why don't they increase production of the 4 to 6 cylinder and hybrid models and take back a little market share from Honda and Toyota?

8/21/2006 03:40:00 PM

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