The market capitalization of GM is more than $16 billion.
The market capitalization of Ford is around $14 billion.
The market capitalization of Toyota is $238 billion !!!
As you can see, the market capitalization of Toyota is almost eight times higher than those of General Motors and Ford together.
Honda has a market capitalization of more than $70 billion. More than twice than GM and Ford combined.
The Asian companies have a very good financial moment and this is reflected in the value of the stocks. The reality is that American car companies have no impressive market capitalizations.
Lately the exchange rate has been of almost 119 Japanese yen per American dollar. A few months ago it was about 114-115.
If we consider that the inflation rate is higher in U.S. than in Japan and that the yen has lost value against the American dollar, this means that the Asian car manufacturers will benefit even more.
Japanese car manufacturers will gain more market share in the American market.
Loading ...
1 user commented in " Stocks of Ford, GM and Toyota. The collapse of U.S. car industry? "
Follow-up comment rss or Leave a TrackbackSkyrocketing oil prices combined with a slowing economy has put the brakes on an automobile industry that was already reeling from supplier bankruptcies, labor unrest, and shifting global preferences. U.S. automobile sales fell to an annualized rate of 13.6 million vehicles, the lowest volume since 1993, with declines of 28 percent at Ford and 16 percent at GM. The rapidly accelerating sales declines at American automobile manufacturers are symptomatic of a product mix that no longer meets the needs or preferences of the American consumer.
http://www.beyondthemargin.net/2008/07/future-of-american-automobile.html
Leave A Reply