By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – It has often been said that Americans have a real love affair with automobiles. In 1971, James Roche, then CEO of General Motors, went so far as to say, "It has matured into a marriage." So here's some recent news on our partner, the car. I'm Maxine Shapiro with KERA Marketplace Midday.
It was bound to happen sooner or later: Toyota Motor Corporation has a good chance of sneaking into the number two slot in automobile sales, stealing the honors from Ford Motor Company. As they round the corner into the final quarter, Ford has sold 4.84 million cars this year and Toyota 4.82 million cars. The vice president of global forecasting at J.D. Powers & Associates has his money on Toyota stating they "could certainly overtake" Ford.
And the spirit of Mr. Roche needn't worry. GM, comfortably placed as the world's largest automaker, also has the most popular car under $12,500. That's based on an average transaction price of the Chevy Cavalier. In total, GM captures almost 30 percent of that cheaper market share. Ford will remain number two in that category with just under 24 percent. Toyota, you'll be surprised to learn, has only about 2.5 percent of the cheaper car market.
Now I'm not an auto industry expert, but wouldn't you think if you had the number one selling car in its class, you would leave well enough alone? Not General Motors. They plan on stopping production of the Cavalier next year. Their replacement: the Chevrolet Cobalt, which will be priced higher than $12,500.
And here's something to chew on: Europe's largest automaker Volkswagen, produces more sausages - currywursts - a year than they do cars. It's over a 2-1 ratio. But don't expect to see any VW brats in your local grocer's meat department. Only Wolfsburg's VW Arena, Autostadt's Ritz-Carlton room service, and of course, the VW plants, carry them. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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