Chapter 5. Succeed in a Dog-Eat-Dog World

The early years of the twenty-first century have not been kind to the American automobile industry. The collective U.S. market share of the so-called Big Three dropped from 71.6% in 1990 to 58.6% in 2004 to 52% in 2006 to 48.1% in 2007.[1] Seemingly, the only way they can convince large numbers of Americans to buy their cars is by offering huge discounts that at best produce minimal to no profits and at worst, losses.

While there are some bright spots in overseas markets, the overall picture is very bleak. Ford is doing very well in Russia (and more generally in Europe), while General Motors has found encouragement in Latin America, Africa, and the Middle East.[2] Nevertheless, Toyota is poised to become ...

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