The Gap Between Chrysler, GM and Toyota

Why are Chrysler and General Motors struggling to stay afloat while Toyota, which has not been immune to the economic downturn, survives?  In case you’re unsure of why such a huge performance gap exists between U.S. auto manufacturers and their Japanese competition, check out these headlines from the Associated Press and Reuters today, which explain it very well.

Chrysler Rolls Out SUV After Government Scolding – Chrysler’s big reveal at the International Auto Show was a new Jeep Grand Cherokee.  Not what the government wants the company to be spending time and bailout money on.

Chrysler President - 30 Days Enough for Fiat Deal – Is Chrysler’s rushed attempt to partner with Fiat to provide smaller cars to U.S. consumers a case of too little, too late?

Three Bidders Left in Hummer Auction - GM finally caught on last summer that they needed to unload the gas-guzzling, environment-hater Hummer brand.  10-months later, three bidders are interested, one has been turned down, and the clock is ticking on GM’s fate.

Toyota Banks on Tiny, Green but Pricier IQ Model – Toyota’s hot pick at the International Auto Show was the super small, 56-miler per gallon Toyota IQ.  In the words of Toyota Senior Managing Director Yoichiro Ichimaru (from the AP article), “Only cars that contribute to economic growth and the betterment of society can hope to succeed.”

Is it any wonder Chrysler and GM have fallen so far behind?  The disparity is mind boggling, and they still don’t seem to get it. 

Image: Flickr

2009 Cadillac Escalade Hybrid – No Wonder U.S. Auto Companies Need a Bailout

If you had any question in your minds that U.S. auto manufacturers are completely clueless, the 2009 Cadillac Escalade Hybrid from General Motors will certainly make it clear that these companies do not deserve a bailout.

At $72,000, the 2009 Cadillac Escalade Hybrid is probably meant to say, “Look at me!  I’m rich and I care about the environment.  Aren’t I wonderful?”  However, when I see this car, I think, “Look at me!  I leased the heck out of this car and now the bank is foreclosing on my house, and I hate the environment but this car makes me feel a little bit better about it.”

The new 2009 Cadillac Escalade Hybrid improves fuel efficiency by 50%.  That means the Cadillac Escalade Hybrid gets a huge 21 miles per gallon!  What do you think?  Does GM deserve a bailout?

There is simply no doubt that U.S. automakers still don’t get it.  There’s a reason why the Toyota Prius is growing more popular everyday and large SUVs are being traded in for smaller cars.  Why can’t U.S. auto companies figure it out?

Update: The 2009 Cadillac Escalade Hybrid has been named to the Yahoo! Finance Best and Worst of 2008 list as the worst car of 2008.

Image: General Motors

Another Reason Not to Bail Out U.S. Automakers

Yet another reason why the government shouldn’t bail out the Big 3 U.S. Automakers – the $38 million Ram Challenge from Chrysler.

What do you do when consumers clearly indicate that big gas-guzzling vehicles are not what they want?  Try to convince them otherwise with a $38 million reality show contest – the Ram Challenge.   At least that’s what Chrysler thinks will save the falling company.  So sad.

Your thoughts?  Will the Ram Challenge save Chrysler? (don’t mind my laughter as you answer that question)

And just for kicks, check out the promo for the Ram Challenge below.  I’m nearly speechless.

 

Image: Flickr