If the Big Three fail, will Japan force hybrids on America?

Yes

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by Corban M. Burns

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Let's all face it; the Japanese car companies have proven that they are more business savvy than the American automakers! So in terms of business smarts, who wouldn't seize hold of this great business venture. Everywhere you turn, Americans are going "green" and when the Big Three fall there will only be one place to satisfy the demand for hybrids in America. "Forcing" hybrids on America would be extremely smart and beneficial for the Japanese car companies.

It was estimated in 2007 that one third or thirty-three percent of Americans have a Japanese manufactured car. Why? Well let's analyze how the Japanese operate and then compare them to the American car companies.

The Japanese closely observe the American car buyer. They wisely take note of what the American car buyer likes, dislikes, and wants to see in their new car. Now with this valuable information, the Japanese simply give American consumers what they want! Toyota and Honda have made it a habit to also throw in an intriguing body style, a more powerful engine, and better gas mileage. Thus, the cars they build become an immediate success.

On the other hand, take for instance, GM, Ford, Cadillac, and other American car companies. They prefer to build SUVs with bad gas mileage and a top that, they give them a high price tag. (In recent commercial ads I have seen at the bottom of the screen in fine print that you are expected and required to have a $5,000 down payment due upon signing. Who can come up with that kind of money?) However, for some odd reason, they are quite shocked when they see a large drop in profits. It's not hard to see. Consumers on a global scale want a better car and American car companies have shown themselves unable to produce a good vehicle for their customers!

Let's also consider the spending habits and overall money management of both the Big Three and the Japanese car companies,Toyota and Honda.

If you look at the past examples, the history books will show that the Big Three and all the other American car companies had and still have bad budgeting habits. For instance, the Big Three have too much overhead. A glance at their financial book would show millions and millions of dollars wasted on raises and bonuses for CEOs, Presidents, Vice-Presidents, Chairmen of the Board, Directors and etc. However, this money would be better spent it if was used to upgrade the factories in which the American cars are made. If the factories were equipped with better manufacturing tools, maybe the cars would perform better.

Now take, for example, the Japanese car companies. They are thriving for many reasons, but a large part can be attributed to their wise saving habits and ability to stick to a planned budget.

Toyota and Honda are known for their economic sedans - the Camry and the Civic - which are now very successful as hybrids, as well. But the Camry and Civic are more than just a budget-friendly hybrid for the American consumers. It is a reflection of the Toyota and Honda Companies. They are always thinking of ways to save money, not just for themselves but also for their customers.

Also, remember how we talked about the Big Three and their big bonuses that they dish out on an annual basis? Well, even though Toyota and Honda are prosperous companies, they do not splurge and raise the salaries and budget for the next year. Rather, they try to see where they can cut back so expenses are on a minimal basis. Nevertheless, they continue to increase the satisfaction of their cars and customer service.

Basically, all of these differences between the Big Three and Toyota/Honda are what sets them so far apart. And Toyota and Honda are winning the race!

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