In 1950 U.S. produced more than 8 million vehicles. Japan manufactured just 32 thousand. As you can see the difference was huge: 250 to 1. Clearly Toyota was no rival for GM or Ford.

In 2005 U.S. produced almost 12 million vehicles. Japan manufactured more than 10 million. The times of the 250 to 1 difference are gone. It was less than 20% in 2005. And it will be even smaller in 2006.

Lately, Toyota has sold more vehicles than Ford in the american market !!

I also have to add the following: Japan has less than 43% of the population of United States. This means that the japanese output of vehicles per head is about twice higher than that of United States.

More? South Korea produced about 3.7 million vehicles but its output per head was almost twice higher than that of U.S. I will know deny that some U.S. companies are shareholders in some south korean car industries but it does not erase the fact that the american car industry has lost ground against the south korean one.

In 2005 China manufactured about 5.7 million vehicles and although this number is small for a country with more than 1.3 billion people, the reality is that in 2006 China could manufacture almost 7 million. And even more than U.S. in the future.

We can see in the future the collapse of the american car industry. As in toys or textiles, the chineses will flood the american market.

And if China has invaded world markets this is not just because China has a cheap workforce. China is also educating its population. China already graduates more engineers than U.S.

The fact is that more than 90% of the chineses are literate today. This is impressive when we consider that decades ago education was a luxury for most of chinese people. In India, less than 60% are literate.

Today China produces almost 4 times more steel than U.S. and about 15 times more cement. Yes, it is no exaggeration. Fifteen times more cement.

This could happen with the car industry too.

The Big Three of Detroit must react or it will be too late.

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