Tax payers now own two-thirds of the U.S. auto industry and are likely to do so for some time to come - so what have we got for our money? The good news is the three big companies (Ford is the supposed star but has little to boast about really) are consistent performers; unfortunately its been consistently awful. Look at the U.S. market share numbers for the large autos:
GM - 1999: 29.6%; 2008: 22.3%
Ford - 1999: 24.2%; 2008: 15% (and they are supposed to be the star!)
Chrysler - 1999: 15.6%; 2008: 11%
Toyota - 1999: 8.8%; 2008: 16.8%
Honda - 1999: 6.4% 2008: 10.8%
Not only have they lost share but combined revenues of the big three are down from $407 billion to $342 billion. GM takes the top prize and it was interesting to read former auto-czar Steve Ratner describe GM's once vaunted finance function in Fortune magazine this way:
"Everyone knew Detroit's reputation for insular, slow-moving cultures. Even by that low standard, I was shocked by the stunningly poor management that we found, particularly at GM, where we encountered, among other things, perhaps the weakest finance operation any of us had ever seen in a major company."
Both former-CEO Rick Wagoner and current-CEO Fritz Henderson are graduates of GM Finance - inspires one with confidence doesn't it.
How sad that this should happen to an industry that largely defined America's rise to become the world's richest nation.
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