Toyota to Eat GM
GM announced that what was once a special employee benefit will now be open to anyone...anyone who wants to buy a GM instead of a Toyota. Here is AOL's account.
Things are not looking good for the world's largest automaker. Inventories of vehicles are piling up on dealer lots, sales of high-profit large SUVs have fallen off as gas prices have gone up -- and several GM divisions (notably Pontiac and Buick) are close to being on life support .
In response, GM has cut production by 12 percent (with future cuts and plant closings in store) and resorted to extraordinary incentive programs that amount to fire sale prices, while competitors -- most notably Toyota, the world's Number Two automaker -- are selling cars at full mark-up and are awash in profit.
Toyota reportedly has enough cash on hand to buy GM's entire automotive operations outright -- and is gunning to replace GM as the world's Number One automaker within five years.
So what will happen to GM?
Things are not looking good for the world's largest automaker. Inventories of vehicles are piling up on dealer lots, sales of high-profit large SUVs have fallen off as gas prices have gone up -- and several GM divisions (notably Pontiac and Buick) are close to being on life support .
In response, GM has cut production by 12 percent (with future cuts and plant closings in store) and resorted to extraordinary incentive programs that amount to fire sale prices, while competitors -- most notably Toyota, the world's Number Two automaker -- are selling cars at full mark-up and are awash in profit.
Toyota reportedly has enough cash on hand to buy GM's entire automotive operations outright -- and is gunning to replace GM as the world's Number One automaker within five years.
So what will happen to GM?
posted by Max Hartshorne at 7:37 PM
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