American Car Companies Failing Miserably

Profit/Loss Per Vehicle Sold in North America During the First Half of 2005

GM: $1227 Loss
Ford: $139 Loss
Chrysler: $186 Profit
Honda: $1203 Profit
Toyota: $1488 Profit
Nissan: $1826 Profit

It may not be surprising to see those numbers, given what we know about GM and Ford’s union-related pension and benefit liabilities. However, given the employee discounts that U.S. automakers are offering, it is interesting to point out that the Japanese car makers are gaining market share in the U.S. even though they are not the ones purposely sacrificing profit in order to increase sales.

Evidently, consumers are willing to pay more for a higher quality vehicle that holds its value much better than its American counterpart. I know I am.