UK: Ford and GM to lose out to Toyota over next decade
Source: just-auto.com editorial team
A report produced by UK-based automotive industry newsletter publisher AID suggests that the decade ahead will see yet more share erosion for Ford and GM with Toyota taking over from GM as the world's biggest vehicle maker.
In its latest 'insider' newsletter, AID argues that years of chronic mismanagement have done the US big two down. AID says that 'research and development for new models and technologies was neglected in a shortsighted attempt to cut costs.'
AID adds that 'self-destructive zero financing deals and cash-back deals to keep production lines running at any cost, including profit, will seal the fate of GM and Ford'.
In a sobering assessment, AID concludes that Ford and GM's seemingly unstoppable market share erosion in the US and Western Europe will be compounded by balance sheet problems induced by pension and healthcare liabilities.
AID says that the financial difficulties may force Ford and GM to dispose of expensive luxury sector acquisitions like Jaguar, Land Rover, Volvo and Saab.