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What political or social implications could develop regarding Toyota passing GM in total sales?

Is it time for the government to step in and rescue the industry? Are the auto companies going to have to cut back benefits in order to compete in the global market? Is Detroit doomed?

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  • 1 decade ago
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    I don't think this is such a big deal, but I think that reports of the death of the US auto industry are a bit premature. I also don't think the government needs to step in, other than maybe leveling the playing field a bit. My understanding is foreign manufacturers gain HUGE subsidies to built things here, and the domestics don't. True or not, I hate the idea of corporate welfare in any form.

    By the way, I don't agree with some of the previuos posters. Domestic manufacturers offer high quality autos, a claim I base on a number of things. But for whatever reason, the public perception is Toyota has better quality.

    But I think a lot of that a lot of that perception is incorrect. For instance, Toyota has apparently been able to hide recalls through the use of service enhancements What's more, the number of recalls belies the whole quality mystique. As a percentage of vehicles recalled compared to the number on the road, Ford sat at 11.7 percent, Toyota at 10.1 percent, GM at 6.8 percent, Honda at 4.0 percent, and Chrysler at just 2.5 percent. There's not a whole lot of difference there, but notice that Toyota and Honda mix right in with our domestic manufacturers.

    There is a gap between reality and perception. Maybe Ford, GM and Chrylser earned some bad marks with handling their problems. But today, GM offers the best warranty in America, builds with the most domestic content, has very good quality, and really good product. People in the market ought to at least give them a look - they might be very surprised!

  • Anonymous
    1 decade ago

    Well as much as I don't like Toyota,there not stupid like the America companies are. They just have to start building cars again.For some reason they only make stupid trucks and the rest of the world seems to be smart enough not to buy some four door,dually four wheel drive pickup unless they actually need it.So I do not think the government needs to step in,just start making what the buying public wants.

  • 1 decade ago

    The US government should NEVER try to "rescue" the auto business. Toyota is showing to Detroit, what Honda did years ago - get off your *** on quality control or lose customers/market share!

    NO consumer buys their "National" brand regardless of quality & price - America DESERVES good quality, dependability and good design at a fair price. Not cheapest - but fair for the attributes!

    Japanese car manufacturers have, and ARE showing Detroit that they can design and provide dependable, good quality at a lower car price than Detroit can. Honda (America) manufactures in Md. - and they make enough profit to pay good benefits to employees. Other workers who don't provide good quality or productivity - need to learn another trade... and fast

    I'm not SURE who said these TRUE words but - "You either Lead, Follow or Get Out of the Way"! Detroit - move over

    Source(s): A substantial Investor
  • Anonymous
    1 decade ago

    i am glad ford/gm are getting waxed by honda/toyato/nissan. It is about time that these "imports" are getting the credit they deserve. the "imports" are much better, they are nicer, more reliable, and cost less. A honda/toyota/nissan can eaasily make it to 200,000 miles no problem, while american cars start to die at a 120,000 miles. The american people are fianlly wising up to this known fact. And most of the Imports are made in america so it still allows for jobs to be produced therefore its not hurting the economy any. all it does is takes away from ford/gm and gives it to the foreign companies in america. Americans are building the cars for each company so the jobs are still there. there is no reason for washington to step in. american car companies deserve to have there asses kicked for building cheap and over priced cars for years and the public is fed up with it.

    Source(s): i am in the car business and have witnessed this for year. the three big jap companies hold their value so much longer than american companies do. i rip people off on american cars everyday and get plenty of sleep at night because its their own fault for buying a forn i sell for a honda dealership by the way. great cars my mother, sisters, have been driving hondas for the last 25 years. there may be a reason for this people who stick with one thing for that long have a reason for doing so.
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  • Anonymous
    1 decade ago

    Foreign brands build in the US and make money why can't GM and Ford. Maybe it is time for GM and Ford to fold up and new US auto brands to be born.

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