SNIP
>Well it is pretty sick that almost half of the employees are eligible for retirement this year. This is surely something that will create huge financial consequences for any company. But really my question is whether you can prove the situation for Toyota or any car manufacturer is much different. Car manufacturers are producing cars in plants all over the world with mainly local employees. Don't you agree that the US car manufacturers got into trouble for the following reasons:
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>1. The oil prices last summer, so that consumers are favouring smaller (most often forreign cars)
>2. Innovation. Lets be honest here. European and Asian cars are much more innovative than the average US car.
>3. The financial crisis that hit the US very hard (Harder than here in europe, so far) so that consumers simply are not buying cars (That is true even up here), but due innovation of environment friendly cars, some cars are getting very popular (Toyota Priuis, Peugot 308 and 107) because of financial benefits.
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>In regards to retirement costs, don't you think European car manufacturers are not suffering form the same problem. We have the same retirement costs up here I'd assume. For medical ensurance, things might be different. Because of the free market (read greed), healthcare is about 3 times as expensive in the US as it is here for the same coverage.

Your first paragraph tells most of the story. As to your list, I agree that #1 hit the U.S. automakers hard. They were making cars based on the buying habits of Americans which stayed pretty much the same until the oil prices jumped. They were designing and making fuel efficient cars though. It cannot really be compared with the European models though. Even those imported are slightly less powerful than their European counterparts. Take my car as an example. While it is indeed German engineered and assembled in Belgium, it had to be 'modified' to meet U.S. safety standards. That puts more weight on the vehicle which also brings down the mpg ratio. There is a more powerful engine available which will be available here in 2010 but it still won't be as spiffy or fuel efficient as the European model due to the extra weight. Those models usually are purchased by the younger crowd (read younger men).

As to innovation, I agree and disagree. There have been some great innovative models designed but they really didn't have a market here until recently. For those manufacturers who really did invest and manufacture a really good fuel efficient vehicle that handles well, the market for those had already turned to imported models. The market for U.S. cars still remained primarily those looking for larger vehicles. As good as those newer and innovative models are, they don't have the name value or image of the imports because the U.S. manufacturers were too far behind the curve.

There is no arguing with #3. Today, if anyone is indeed buying a vehicle, they are most likely looking at the resale value as well, and frankly with the manufacturers in the state they are in right now, there isn't any. Most Americans will not put out the kind of money needed for a vehicle just to keep the company in business. When the going gets tough, they look to what is immediately best for their families first.

I just realized in typing this that I did agree with you afterall... :o)