Wednesday, December 10, 2008

GM versus Toyota: Someone is doing something wrong

If we look at 2007 - for a full year's sales data, we find them tied in units sold. GM releases global sales numbers for 2007, in dead heat with Toyota - Autoblog Each sold about 9.3 million cars worldwide.

If you look at the financial scorecard, things are a bit more lopsided.
For all of 2007, GM posted a loss of $38.7 billion, the biggest ever for an automaker.
Now the Detroit apologists will point out that minus some "extraordinary" write downs they almost, but not quite, broke even. Except that there always seem to be "extraordinary" events.

Toyota meanwhile made money. (Comparisons are a bit off because of different fiscal years, but you get the idea.)
Toyota Motor Corp. also left its profit projection at 1.7 trillion yen ($15.91 billion) for the fiscal year on 25.5 trillion yen ($238.61 billion) in sales.
They both did well in Europe's emerging markets.

Now they say we have been in a recession for a year. Which means that most of 2007 was not a recession. And still GM can't make money.

And you want me to invest in this corporation? Why? Toyota is clearly a better investment. If you can't make money in a good or average year, why should you expect to stay in business in a bad year?

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