Japanese surpass GM in North American vehicle production
It’s official: Japanese automakers build more cars and trucks in North America than General Motors. The milestone has been expected for some time now, with manufacturers like Toyota and Honda churning out some 4.8 million vehicles in the region in 2005, and GM whittling away its totals to 4.6 million. The gulf is expected to accelerate as GM continues to ‘right size’ its manufacturing both within and beyond America’s borders over the coming years.
The report by Scotia Economics indicates that Asian companies will increase their share of global capacity to 37-percent by decade’s end (it was 34-percent in 2004). Further, it estimates that if GM and Ford can make good on their cutback plans, by the end of 2008 North American capacity will represent under 20-percent of global automaking capacity-- a number that stood at 30-percent as recently as 1999.
[Sources: AFP via Servihoo, Boston.com]
(Appreciate the tip, Carpenter!)
Reader Comments (Page 1 of 2)
DarkKnight67 8:51AM (4/05/2006)
Yep, and I'm sure all the GM haters are just loving it. Bend over and say "MUSHI,MUSHI!"
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will 9:05AM (4/05/2006)
so all the japanese companies combined make more cars in america than one company? big wup
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brian 9:07AM (4/05/2006)
#1. I wasn't aware that the Japanese were one company. Why not call it like it is? Toyota, GM, Honda are all GLOBAL companies, let's start thinking that way, ok?
#2. It will be interesting to see what Toyota and Honda do in a few decades when their current workforce is entering retirement (GM hasn already gone through the cycle many times) and they do not have the Japanese goverment to pay for retirement benefits. (in Japan, the worker retires and the parent company doesn't have to pay health care or anything like that)
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ToyotaLoverUK 9:08AM (4/05/2006)
Unfortunately (or fortunately, depending which way you look at it), this trend will continue. I keep hearing people one of the following arguments to back up GM or Ford (I'll discount Chrysler as we all know who really own them!)
1/ Japanese aren't playing fair because of currency manipulation.
False: The yen is booming now and will only continue to soar due a robust Japanese economy.Hence why they are building more and more plants in NA to cover themselves from any currency boom or bust. Also, are we to believe that the United States government aren't guilty of currency manipulation? I distinctly remember the dollar weakening in order to encourage investment into the United States, but make of that what you will.
2: GM and Ford make cars just as reliable as any Japanese auto maker.
False and True: While it may be the case that GM/Ford are building reliable cars now, people (i.e Car buyers) cannot discount how many people got burned before with poorly built cars from GM/Ford during the 80's. You cannot build a repuation for reliability overnight which is what GM/Ford seem to think. While the Japanese initially made poorly built cars, they chose to work on their weaknesses and continually develop (Kaizen, anyone?) until the word "Japanese" became synonymous with "reliability". GM/Ford need to continue making reliable cars and hope the public realise this eventually. But when you burn people, they don't forget in a hurry. Maybe next time, they'll treat their customers with a little more respect...?
3: GM/Ford's technology is just as good as Japanese.
False: Unfortunately, (and called me biased here) but GM/Ford are showing to the world how backward they are. For years we have known that petrol is a diminishing energy. While the Japanese worked on and developed Hybrid technology, why did GM/Ford do? Churn out petrol guzzling SUV after petrol guzzling SUV! As if the SUV party would never end! What happened? A backlash against SUV's began. Soaring energy prices and a president giving petrol and even worse reputation than it had before! (Exxon/Esso and the Iraq war?) No technology is infinite. Even Hybrid technology will become archaic. They question is, can GM/Ford develop the next big technology? Only 2 people can answer that (Rick Wagoner and Bill Ford? Over to you!). It also doesn't help when Ford openly admit they license their hybrid technology from Toyota!
4: JD Power and Consumer reports rate GM brands and Ford brands above Japanese brands.
Irrelevant: For ever report you can produce which says one thing I could produce another report which says this opposite. While informative, these reports cannot be taken literally. The best way to find what you think of a car is to ask friends/family what their experience have been with a brand. Which brings me back to point number 2 quite neatly. Because most people during the 80's and some of the 90's have had bad experiences with GM/Ford, what do you think the likelihood is of someone buying a GM/Ford car based on recommendation....?
Now, I know what you're thinking. What does this have to do this article? Well, my point is this. Although, I love Toyotas (Hence, my name!) No-one wants to see GM and Ford shut up shop. Competion is good for not only us, the consumer, but for companies like GM, Ford, Toyota, Honda, etc. Without someone breathing down your neck where's your incentive to make better products? So unless GM and Ford address their problems (i.e quit whingeing and build a better car at a better price and profit margin) their problems will continue to a point of irreversibility. I'm not a big believer in "buy American" mentality as it is completely nonsensical. Firstly, define "American built"? Assembled here? American company? Parts from America? Secondly, if you support a product which is technologically inferior (for instance) just because it is "American", all you do is breed an inferior product for next time. Where have we seen that before? (Hint: Begins with a "C" and was hidden behind an "Iron Curtain").
I have only written this article because it what I feel from a UK perspective. But please correct me and I am always willing to learn. Thank you and I hope you enjoyed reading my thoughts. :O)
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Mike 9:21AM (4/05/2006)
[sarcasm]wow, you mean to tell me that if you combine ALL the japanese brands they make about 200k more vehicles than GM? the tables have indeed turned and GM should just file for bankruptcy now![/sarcasm]
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Elio 9:49AM (4/05/2006)
yeah but GM is not making money making more vehicles than everyone else.
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Sid 10:10AM (4/05/2006)
This is the stupidest no-news news article in recent times. And that's saying something.
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Joe 10:12AM (4/05/2006)
Lets see huge taxbrakes for them to have there factories here and with NAFTA and all the other BS trade agrements GM and others it cheaper for them to ship them here. Lets see they should make if fair and give all the same treatment to keep the factories and jobs in the states where they should be since GM, FORD, and others started here. I just don't get it.
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Richard Warren 10:24AM (4/05/2006)
The day 1 Japanese company builds more cars than GM here, then I'll be impressed.
If we're going to count what the Japanese in total produce here then lets Total GM, Ford and DCX.
So at the moment, they have surpassed the number, what happens when one of them has a bad year (it will happen, it has in the past)guess who bubbles up to number 1 again, GM
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Finished.Law.School 10:42AM (4/05/2006)
More proof that the UAW sucks is useless and counterproductive.
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Paul 11:02AM (4/05/2006)
more proof that americans are not capable of managing themselves. we need the better trained asians to do that for us.
further proof that us congress should lift the restrictions on non american born citizens from becoming president. who is nothing more than a manager.
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steve s 11:03AM (4/05/2006)
The reason its significant is that foreign companies are building more cars on US soil than what was once the largest American automaker. How many GM plants are there in Japan churning out cars for the Japanese marketCricket chirp. Cricket chirp.
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Richard Warren 11:05AM (4/05/2006)
#10 If you offered that weak evidence in court of increased production of many companies compared to one as a comparison to UAW VS non UAW you'd be laughed out of court.
The word "unskilled" comes to mind, go back to lawa school and retake the class
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Corey W. 11:22AM (4/05/2006)
Guys, no offense, but this is a stupid article. When Toyota or Honda separately builds more cars than GM, then report it. Domestics are losing market share... duh!! It's called competition, it happens, there's always going to be a #1... Who it is may fluctuate, the market is always going to push automakers to build better cars, which is good for the consumer.
It's already been estimated that if Toyota increases production about 10%, within two years, they will over take GM. Woo Hoo!! SO WHAT!!! Get over it...
If Toyota/Honda ever builds something I like, I will consider them, but until then or I'm dissatisfied, I will continue to purchase GM products, whether they're #1 or not.
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Whydrive 11:37AM (4/05/2006)
Autoblog has a double standard. They let morons like Paul continue to post his drivel but the moment someone criticizes non-Americans, oh wait, it's racist and discriminatory. Why don't we take Paul's comment and replace Americans with African-Americans?
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Lithous 11:56AM (4/05/2006)
"GM/Ford's technology is just as good as Japanese.
False: Unfortunately, (and called me biased here) but GM/Ford are showing to the world how backward they are. For years we have known that petrol is a diminishing energy. While the Japanese worked on and developed Hybrid technology, why did GM/Ford do?"
Teacher, teacher, pick me, pick me. I know the answer...
1. GM was developing and leasing the best all-electric vehicle mass produced on the planet.
2. GM was spending over a billion dollars on Hydrogen Fuel cell technology and (stupidly IMO) working with Toyota (nothing could be worse than sharing your latest technology with them) on that technology (gee, did Toyota see an advantage with working with GM on an alternative fuel?). Looking into liquid Hydrogen fuels (The H2H Hummer).
3. Developing revolutionary platforms like the GMC Sequal concept.
4. On the side making a mild hybrid system (to appear in the VUE and Tahoe very very soon) to appease those who cry bloody murder because GM didn't want to waste money on putting TWO freakin' motors in a vehicle to save a little gas when in ten years or less water vapor out the rear could replace that overly complex technology.
Yup, just GM sittin' on their asses again. Doing absolutely... well, everything, while most Americans gain 50 pounds stuffing their faces and calling GM every name in the book. Yup, same crap, different decade.
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Lithous 12:10PM (4/05/2006)
"Autoblog has a double standard. They let morons like Paul continue to post his drivel but the moment someone criticizes non-Americans, oh wait, it's racist and discriminatory."
I agree. I've had posts of mine removed on several occassions from autoblog. I think that those who spell "color" as "colour" don't mind the American bashing as much from what I can tell.
I further think that those readers of this blog that accuse many of being racist don't ever tell Paul and alike that it isn't right.
Exactly why the global economy is going to be tragic for America. Watch what you wish for when the U.S. has to conform to the majority vote of the world some day. As in the guy in Afghanistan that was going to be killed for converting. Maybe with enough vote Christianity will be outlawed by the United Nations someday.
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Paul 12:17PM (4/05/2006)
don't be xenophobic
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Richard Warren 12:28PM (4/05/2006)
Asian management:
15.5 percent increase in the number of corporate bankruptcies in the last decade, while slowing, an 18% drop last month it continues.
Collapse of Nissan Mutual Life
Sony towered in the 1980s. Where are they now?
$600 billion-plus in bad loans at banks and financial institutions
Keep this little fact in mind in 2005 Japanese company failures declined by 15 percent to a paltry 16,255
16,255 major company failures and thats a decline.
Companies filing for bankruptcy in 2005 owed 11.58 trillion yen of debt
Over the past decade, Japanese banks have written off an additional 83 trillion yen = $700 billion
Technically most Japanese banks at the end of 2004 were bankrupt
And over the years here in the US The Japanese have been notorious for failures in New York Real Estate, Hollywood film companies, California bank expansion, Pebble Beach Golf Course and of course the Mitsubishi Motor Company's sex discrimination case.
I could go on, but the point is this, the Japanese may have a different style management but they have their failures just like any other companies. The younger generation of Japanese do not have the same feeling of its all work and no play like the previous generation. Have the Japanese turned some those things around? Yes, but so have we. To hold them up as the shining light of management is just plain not looking at the complete record.
So Paul, you can go back to handing out burgers, its nearly lunch time, when the Japanese take over your company, youll be gone, thank god, you left off the pickle again, and straighten that cap and tie of yours, gotta go, your next drive up customer is right behind me.
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Paul 12:47PM (4/05/2006)
Richard
don't be so hostile to the truth. america has its best minds in finance, legal and medical. manufacturing is looked down upon as a profession. engineering is left to asians. manufacturing companies no longer have the talent to produce competitive products or the management skills to run them. manufacturing is done in the us. at least until the educational and career preferences change. the asians are very good at it and it shows. The manufacturing industries that are not yet dominated by asians soon will be. so lets just sit back and let it happen... it cant be stopped.
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